This month Blackbaud, a cloud computing provider primarily serving nonprofits and educational institutions, announced that the company suffered a ransomware attack back in May. The company’s response, however, has raised more than a few eyebrows from security experts, and left hundreds of nonprofits scrambling to figure out if they’ve been affected. The Blackbaud breach is just the latest reminder that third party data processors can be a liability to your business.

According to Blackbaud’s statement about the breach, the company quickly discovered the attack and was able to remove the attackers from their systems — but not before the hackers stole a copy of a data set. Blackbaud has not specified the exact nature of that data, but claims it does not include sensitive information such as credit card information, bank account information, or social security numbers. On source told the BBC, however, that the stolen data involves donor information from hundreds of nonprofits and institutions and includes details such as names, addresses, ages, and estimated wealth. Now, organizations that are customers of Blackbaud are scrambling to see if their donors’ information was included in the breach and, if so, must release data breach disclosures of their own.

The most egregious part of the Blackbaud breach, however, was the company’s response. When they discovered their data had been stolen, they agreed to pay a ransom to have the attackers delete that data. Subsequently, Blackbaud assured their customers that there is no reason to believe the stolen data “was or will be misused; or will be disseminated or otherwise made available publicly.” However, cybersecurity experts have been quick to point out that this is a dangerous assumption to make.

Despite Blackbaud’s insistence that the data has been deleted by the hackers, the company has not stated why they are confident in that assumption, and no external investigation has been able to confirm it. As many have noted, Blackbaud’s response to the breach seems more an attempt to protect their brand’s reputation, rather than a transparent disclosure. There are also questions about the amount of time the company took to disclose the breach, and whether or not that violates GDPR requirements.

The fact that so many questions about the Blackblaud breach are still unanswered two weeks after it was announced has not been assuring to the nonprofits that use their services. Over 100 organizations have already notified their donor’s about the breach, and more will likely do so in the weeks ahead.

While this far from the only third-party provider to suffer a data breach, the attack on Blackbaud is a rather stark example of why businesses need to take the time to carefully evaluate third-party security practices, as well as insist on strong agreements that define accountability and responsibilities in the event of an incident. This is especially important for associations and non-profits because their very existence relies on the trust that their members or donors place in them.  When that trust is violated, it takes a long time to repair.

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