Blackbaud Fined for Inadequate Security Measures and Misleading Customers
- FTC settles allegations against Blackbaud over security practices leading to a data breach
- Hacker accessed consumers’ personal information through a weakness in Blackbaud’s network
- Weakness went undetected for three months
- Company delayed notifying customers about the breach and misled them on stolen data extent
The U.S. Federal Trade Commission has settled allegations against Blackbaud, a South Carolina-based data services provider, over lax security practices that led to a hacker breaching the company’s network and accessing consumers’ personal information. The FTC charged the firm in February for failing to implement appropriate safeguards to protect personal data. A hacker exploited an unnoticed weakness in Blackbaud’s network for three months before it was detected. The company delayed notifying its customers about the breach and provided misleading information on the extent of stolen data, including Social Security and bank account numbers. Under the order, Blackbaud must delete unnecessary data and cannot misrepresent its data security and retention policies.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the settlement between the FTC and Blackbaud, the nature of the breach, and the consequences for the company. It does not contain digressions or irrelevant details, nor does it present personal opinions as facts. The reporting is not exaggerated or misleading.
Noise Level: 3
Noise Justification: The article provides relevant information about a cybersecurity breach at Blackbaud and the resulting settlement with the FTC, but it could have included more details on the specific security practices that were lacking or how this incident might impact consumers. It also lacks analysis of long-term trends or possibilities in data security.
Public Companies: Blackbaud (N/A)
Key People:
Financial Relevance: Yes
Financial Markets Impacted: Blackbaud Inc.
Financial Rating Justification: This article discusses a settlement between the U.S. Federal Trade Commission and Blackbaud, a company that provides data services to companies and nonprofits. The settlement is related to security practices and data breaches, which can impact the company’s reputation and potentially its financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event is mentioned in the article.
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