What you need to know about the PowerSchool breach and the NC investigation

The North Carolina Attorney General announced an investigation into the recent PowerSchool data breach. 

The backstory

The PowerSchool data breach involved the unauthorized exfiltration of sensitive personal information from its Student Information System (SIS) environments. The breach was first detected on December 28, 2024, and occurred when hackers gained access to PowerSchool's internal customer support portal, PowerSource, using compromised credentials. 

Once inside, they leveraged a maintenance tool to export student and teacher data from SIS environments. The stolen data included names, contact details, Social Security numbers (SSNs), medical alerts, academic records for certain individuals, and other personally identifiable information belonging to students and teachers. The cause of the breach was primarily due to the misuse of stolen credentials that were likely obtained through earlier cyber attacks or dark web marketplaces. 

Despite paying a ransom in hopes that the stolen data would be deleted following negotiations facilitated by CyberSteward, experts warn that such assurances cannot be fully trusted. As a result of this incident, millions of students and educators across North America are potentially impacted

The reason behind the investigation 

The breach affected millions across the country, including nearly four million individuals in North Carolina. The Attorney General aims to determine if PowerSchool adhered to legal standards for protecting this data before and during the breach. Given North Carolina's history of holding entities accountable for data breaches, such as its role in the Equifax lawsuit, the investigation is looking to ensure that PowerSchool took appropriate measures to protect user privacy.

The main aftereffects of the breach

• The PowerSchool data breach has exposed sensitive information of millions of students and teachers, putting them at risk of identity theft and fraud.
• Affected individuals are advised to monitor their credit reports closely for any suspicious activity.
• PowerSchool is offering complimentary identity protection services to those impacted by the breach.
• Multiple class action lawsuits have been filed against PowerSchool, alleging negligence in handling user data. 
  
  

How similar breaches can be prevented 

1. Make use of firewalls, segment networks to limit exposure, and restrict access to sensitive areas based on need-to-know principles.
2. Regularly patch vulnerabilities using automated tools whenever possible to stay ahead of emerging threats.
3. Use penetration testing to proactively identify weaknesses before they can be exploited by malicious actors.
4. Provide ongoing education on phishing detection, safe internet practices, and security best practices to empower staff as frontline defenders against cyber threats.
5. Use HIPAA compliant email systems to protect data transmitted.
6. Continuously monitor sensitive data to prevent unauthorized transfers or leaks that could compromise privacy.
7. Outline clear procedures for swift action if a breach occurs, including strategies for containment and mitigation of damage.
   
   

FAQs

What is the average cost of a data breach?

The average cost for each lost or stolen record containing sensitive information is approximately $148 per company. This includes costs such as hiring forensic experts, in-house investigation teams, and providing free credit monitoring services for affected customers.

How long does it typically take to detect a data breach?

On average, it takes more than five months to detect a data breach after it occurs.

What types of attacks are most commonly involved in data breaches?

Common methods include phishing (social engineering), brute force attacks (guessing passwords), and malware infections (e.g., spyware for stealing private data).