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French software company fined $2 million for cyber failings leading to data breach

Monday, December 29, 2025

French software company fined $2 million for cyber failings leading to data breach

What

Nexpublica France, a software company, was levied a €1.7 million ($2 million) fine by the French data protection regulator, CNIL. This penalty stemmed from a data breach reported in November 2022, where users of a Nexpublica portal gained unauthorized access to documents belonging to third parties. CNIL's investigation concluded that the company's data security program was inadequate and that Nexpublica had prior knowledge of these security deficiencies but only acted to rectify them after the breach occurred, constituting a violation of GDPR.

Where

The incident involved the French software company Nexpublica France, with the fine imposed by France's data protection regulator, CNIL. The affected systems were Nexpublica's portals, impacting users and third parties whose documents were exposed.

When

The data breach was reported in November 2022. France's data regulator, CNIL, investigated the incident and subsequently levied the fine on December 22 (year not specified, but implied 2023 given the breach date).

Key Factors

  • The €1.7 million ($2 million) fine was specifically determined by CNIL based on Nexpublica's financial capacity, its lack of knowledge of basic security principles, the number of individuals affected, and the sensitivity of the data processed.
  • CNIL's investigation revealed that Nexpublica's data security program was inadequate, and critically, the company was aware of these security deficiencies prior to the breach but failed to address them until after the incident occurred.
  • The inadequate security practices directly led to a violation of Europe's General Data Protection Regulation (GDPR), underscoring the legal ramifications for companies failing to protect personal data.

Takeaways

  • Organizations must proactively identify and remediate known security vulnerabilities to prevent data breaches and avoid significant regulatory fines and reputational damage.
  • Strict adherence to data protection regulations like GDPR is paramount, as negligence in implementing basic security principles can lead to severe financial penalties and legal consequences.
  • Implementing regular security audits, maintaining an adequate data security program, and promptly addressing identified weaknesses are essential practices for safeguarding user data and ensuring compliance.
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