Blackbaud blasted for failing to forestall buyer breaches

Photo of author

By Calvin S. Nelson

Three and a half years on from a devastating 2020 ransomware assault that led to information breaches at hundreds of downstream prospects of cloud software program firm Blackbaud, the US-based provider has been blasted by authorities over main cyber safety failings, and ordered to take remedial steps.

Blackbaud specialises in monetary, fundraising and admin software program pitched at instructional establishments and non-profits. The assault on its methods in 2020 is understood to have impacted the information of a number of UK universities, together with Aberdeen, Birmingham, Bristol, Brunel, Durham, East Anglia, Exeter, Glasgow, Heriot-Watt, Kent, Leeds, Liverpool, London, Loughborough, Manchester, Northampton, Oxford Brookes, Studying, Robert Gordon, Staffordshire, Strathclyde, Sussex and West London.

Non-profit victims embrace Motion on Habit, Breast Most cancers Now, the Choir with No Identify, Maccabi GB, the Nationwide Belief, Sue Ryder, the Urology Basis and the Wallich. Knowledge on Labour Get together donors was additionally taken.

At each step in its response, it has since emerged, Blackbaud did not observe recognised and beneficial incident response finest observe.

The assault started in February 2020 and was found in Could, however Blackbaud waited nearly two months to tell victims. It then brazenly disclosed it had paid a ransom of 24 bitcoin in alternate for a promise that the ransomware gang would delete the information, however by no means verified that this was accomplished.

In a criticism printed on 1 February, the US Federal Commerce Fee (FTC) mentioned that Blackbaud did not implement acceptable safeguards to guard and safe its prospects’ information.

“Blackbaud’s shoddy safety and information retention practices allowed a hacker to acquire delicate private information about thousands and thousands of shoppers,” mentioned Samuel Levine, director of the FTC’s Bureau of Client Safety. “Firms have a duty to safe information they preserve and to delete information they now not want.”

In its criticism, the FTC mentioned Blackbaud deceived its prospects by failing to implement bodily, digital and procedural safeguards to guard their information regardless of having promised to take action.

Amongst different issues, it failed to watch repeated makes an attempt to interrupt into its methods, section information to forestall them from accessing it, make sure that unneeded information was deleted, implement multi-factor authentication (MFA), and take a look at, assessment and assess its safety controls. It additionally allowed its personal staff to make use of default, weak or an identical passwords throughout their accounts.

Because of these points, the risk actor behind the intrusion was in a position to transfer freely round a number of environments at will, exploiting current vulnerabilities and admin accounts, and accessing and eradicating unencrypted information on the agency’s prospects.

Moreover, the FTC mentioned, Blackbaud was retaining information for a lot longer than was mandatory for the aim for which it was maintained – as such, a few of the information associated to organisations that have been now not prospects.

The FTC additionally cited the two-month delay in notification, although Blackbaud was nicely conscious its attacker had obtained delicate information together with monetary data and US Social Safety numbers. This delay, it mentioned, harmed abnormal individuals who have been unable to do something to guard themselves in opposition to id theft or different harms.

Going ahead, the FTC is proposing an order requiring Blackbaud to delete information it now not wants to offer services or products to prospects, and prohibiting it from misrepresenting its safety practices. The FTC’s order may even demand the corporate develops a “complete” cyber safety programme to deal with the problems that have been discovered, and that it’s made to inform the FTC if it experiences a notifiable breach in future.

Blackbaud has beforehand been penalised by the Securities and Trade Fee, the US monetary regulator, over its deceptive response to the cyber assault. Moreover, final yr, it reached an settlement to pay $49.5m, cut up throughout all 50 US states, to resolve their investigations that it violated state legal guidelines and the federal Well being Insurance coverage Portability and Accountability Act. It was additionally reprimanded by the Data Commissioner’s Workplace within the UK.

Leave a Comment