South Carolina Software Company Settles Multi-Million Dollar Ransomware Case

Charleston, S.C. - In a significant development, a South Carolina-based software company, Blackbaud, has reached a multi-million dollar settlement stemming from a ransomware incident that transpired in 2020. This cybersecurity breach had dire consequences, resulting in the exposure of the personal data of numerous consumers across the United States.

South Carolina Attorney General Alan Wilson recently made the announcement, revealing that Blackbaud has agreed to pay a substantial sum of $49.5 million. This substantial settlement serves as a resolution to allegations that the company had violated state consumer protection laws, breach notification laws, and the Health Insurance Portability and Accountability Act (HIPAA). The alleged violations revolved around the company's failure to implement adequate data security measures.

Blackbaud specializes in software solutions that facilitate the connection between nonprofit organizations and their donors while managing a wealth of data related to their constituents. This data encompasses a broad spectrum of sensitive information, including contact details, demographic data, Social Security numbers, driver's license numbers, financial particulars, employment records, wealth information, donation history, and even protected health information.

The breach, which occurred in 2020, had a widespread impact, affecting approximately 13,000 Blackbaud customers. This breach, in turn, led to the inadvertent exposure of the personal information of countless consumers associated with these organizations.

This settlement highlights the increasing importance of data security and the severe consequences that companies may face when failing to uphold their responsibilities in safeguarding sensitive consumer data. The substantial financial penalty imposed on Blackbaud serves as a stark reminder of the legal obligations that entities handling sensitive data must meet to protect the privacy and security of individuals.