Texas Attorney General Ken Paxton has reached a settlement with Blackbaud, Inc. to address the software provider's deficient data security privacy practices. The settlement comes after an investigation into a 2020 data breach that impacted over 13,000 Blackbaud customers and their respective constituents.
Blackbaud's customers, including educational institutions, healthcare groups, cultural organizations, and nonprofits, rely on the company's software to manage donor and constituent data. The breach exposed highly sensitive information such as Social Security numbers, government identification numbers, financial data, protected health information, and donor demographics.
Attorney General Paxton emphasized the importance of protecting Texans' personal and sensitive information, stating, "My office will continue to work diligently to ensure that Texans' personal and sensitive information is protected. When companies discover that customers' sensitive data has been breached, it is critical that they report such incidents quickly as required by Texas law."
As part of the settlement, Blackbaud has agreed to enhance its data security and breach notification practices. This includes implementing specific security requirements such as database encryption, network segmentation, access controls, timely patch management, and dark web monitoring.
In addition, Blackbaud will make a payment of $49.5 million to the 50 states involved in the settlement, with Texas receiving over $2,766,000. This financial contribution demonstrates Blackbaud's commitment to rectifying the situation and compensating affected parties.
The settlement signifies a significant step towards ensuring that Blackbaud addresses its data security shortcomings and is prepared to handle any future security incidents. By implementing stronger security measures and promptly notifying customers of breaches, Blackbaud aims to regain the trust of its clients and safeguard their sensitive information.
To view the details of Blackbaud's Assurance of Voluntary Compliance, interested parties can access it by clicking here. This document outlines the specific actions and changes that Blackbaud will undertake to enhance its data security and privacy practices.
Attorney General Paxton's successful settlement with Blackbaud serves as a reminder to all companies that the protection of customer data is of utmost importance. The agreement sets a precedent for accountability and reinforces the need for companies to prioritize robust data security measures.
To learn more, click on this link: https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-obtains-settlement-blackbaud-requiring-overhaul-its-data-security