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In December 2024, PowerSchool, a major provider of K-12 software serving 60 million students across North America, experienced a significant data breach. Hackers gained access to sensitive student and teacher data, including personally identifiable information such as Social Security numbers and health data, through a single stolen credential. The company, believing it was the best course of action, paid an undisclosed ransom to the threat actor to prevent the data from being made public, however this has proven to be unsuccessful.

Months later, it has been revealed that the threat actors are now directly targeting individual school districts with extortion demands, using the stolen data from the initial breach. The Toronto District School Board (TDSB), along with other schools in North America, has confirmed receiving ransom demands from the attackers. The exposed information includes names, contact details, birth dates, Social Security numbers, and even some medical alert data. PowerSchool has confirmed that these extortion attempts are related to the original breach and is working with law enforcement.

Cybersecurity experts have warned against paying ransoms, as there is no guarantee that hackers will delete the stolen data. This case exemplifies the risk of paying extortion demands, as the threat actors have resurfaced to revictimize affected individuals and institutions with additional demands. PowerSchool is offering two years of free identity protection to affected individuals, however there will be pressure for them to improve its security and reassure stakeholders that it can prevent similar incidents in the future.


References :

• bsky.app: The hacker behind PowerSchool's December breach is now extorting schools, threatening to release stolen student and teacher data.
• Threats | CyberScoop: The large education tech vendor was hit by a cyberattack and paid a ransom in December. Now, a threat actor is attempting to extort the company’s customers with stolen data.
• The Register - Security: PowerSchool paid thieves to delete stolen student, teacher data. Crooks may have lied
• The DefendOps Diaries: Report discussing the PowerSchool data breach and its implications.
• BleepingComputer: PowerSchool is warning that the hacker behind its December cyberattack is now individually extorting schools, threatening to release the previously stolen student and teacher data if a ransom is not paid. [...]
• www.bleepingcomputer.com: BleepingComputer reports on PowerSchool hacker extorting school districts.
• cyberscoop.com: PowerSchool customers hit by downstream extortion threats
• BleepingComputer: PowerSchool hacker now extorting individual school districts
• malware.news: PowerSchool paid a hacker’s extortion demand, but now school district clients are being extorted anyway (2)
• DataBreaches.Net: PowerSchool paid a hacker’s extortion demand, but now school district clients are being extorted anyway (3)
• PCMag UK security: UK PCMag covers PowerSchool attackers extorting teachers.
• go.theregister.com: PowerSchool paid thieves to delete stolen student, teacher data. Crooks may have lied Now individual school districts extorted by fiends
• Metacurity: PowerSchool hackers are extorting schools despite the company's ransom payment
• techcrunch.com: TechCrunch article on PowerSchool being hacked.
• hackread.com: PowerSchool Paid Ransom, Now Hackers Target Teachers for More
• ExpressVPN Blog: Teachers report that bad actors are now targeting them with threatening emails demanding payment following a massive 2024 breach affecting schools across the US and Canada. One of the largest hacks of US schools continues as teachers across the country say that threat actors are extorting them for more money and threatening to release the data.
• www.metacurity.com: PowerSchool hackers are extorting schools despite the company's ransom payment
• thecyberexpress.com: Toronto School Board Hit with Extortion Demand After PowerSchool Data Breach
• Blog: PowerSchool clients now targeted directly by threat actor
• cyberinsider.com: PowerSchool Ransom Fallout: Extortion Attempts Hit Schools Months After Data Breach
• www.techradar.com: PowerSchool hackers return, and may not have deleted stolen data as promised
• malware.news: Double-extortion tactics used in PowerSchool ransomware attack
• CyberInsider: Months after paying a ransom to suppress the fallout of a major data breach, PowerSchool is facing renewed turmoil as threat actors have begun extorting individual school districts using the same stolen data.
• Matthew Rosenquist: More extortions, same - a perfect example of how not to deal with risks. The nightmare continues for schools, students, and teachers who's private data was exposed by PowerSchool.
• matthewrosenquist.substack.com: PowerSchool data breach round 2 extortions
• aboutdfir.com: Reports an education tech provider paid thieves to delete stolen student, teacher data.
• MeatMutts: The educational sector has been rocked by a significant data breach involving PowerSchool, a leading education technology provider serving over 60 million students globally.
• aboutdfir.com: PowerSchool paid thieves to delete stolen student, teacher data. Looks like crooks lied An education tech provider that paid a ransom to prevent the leak of stolen student and teacher data is now watching its school district customers get individually extorted by either the same ransomware crew that hit it – or someone connected to

Classification:

• HashTags: #PowerSchool #DataBreach #Ransomware
• Company: PowerSchool
• Target: PowerSchool clients, school districts
• Product: PowerSchool SIS
• Feature: data breach
• Type: Ransomware
• Severity: Major