Blackbaud, Inc., a software provider, confirmed on Friday that it reached a settlement with the U.S. Federal Trade Commission (FTC) in response to a 2020 security breach. During the incident, millions of customer's personal data, including Social Security and bank account numbers, were compromised due to the company's security oversight.
Per the FTC, the South Carolina headquartered company is mandated to erase any customer data which is no longer necessary for its operations. Additionally, Blackbaud must create and maintain a comprehensive information security program and data retention schedule, as well as promptly report any similar future incidents to the agency.
As part of the order, the FTC has stipulated that Blackbaud is now prohibited from falsely representing its data security and data retention practices. Regarding the financial implications, Blackbaud clarified it is not obligated to pay any financial settlement.
On Thursday before the announcement, Blackbaud's share price ended at $82.27 on the Nasdaq, marking an increase of 1.67 percent.
