In late December, PowerSchool, the largest cloud-based school management system in North America, became aware of a wide-scale data breach that impacted more than 60 million people. PowerSchool is a student information system that provides data integration and other digital tools to schools worldwide and has long been considered a cornerstone of education technology. The security breach on their network is a stark reminder of the vulnerabilities inherent in digital systems and underscores the urgent need for robust cybersecurity measures across schools and businesses alike.
Background on the PowerSchool Breach
In PowerSchool’s announcement of the cybersecurity incident in late January, they revealed that unauthorized access had been detected in their systems. The data breach potentially compromised names, addresses, dates of birth, and even sensitive educational records of nearly everyone in their customer base, though the full extent of the data exposed is still under investigation. Bleeping Computer reported that for some school districts, social security numbers and other personally identifiable information (PII) were also stolen by an unauthorized party. It was not just current students and school staff who were impacted.
While PowerSchool has assured users that it is working with cybersecurity experts and law enforcement to mitigate the damage, questions remain about the adequacy of its prior security measures and the speed of its response.
Who Was Impacted?
The impact of the breach is staggering. Over 60 million individuals, primarily students and educators, were affected, spanning thousands of school districts in North America and beyond. Canadian students in Alberta, such as schools governed by the Calgary Board of Education (CBE), were among those impacted, raising concerns about compliance with the Freedom of Information and Protection of Privacy (FOIP) Act in Canada. PowerSchool has said in a statement that there were no operational disruptions, but any school impacted should be implementing additional security measures.
For K-12 schools, their students, and families, the breach means potential exposure to identity theft and other cybercrimes. Educators and school administrators, too, face risks, including phishing attacks and reputational damage. The incident has dramatically impacted the education industry, shaking trust in education technology providers and putting a spotlight on data security standards in place to protect student records in the sector.
PowerSchool is working with third-party cybersecurity experts to control the damage. They have reportedly responded to an extortion demand by paying a ransom to prevent distribution of the data. They have offered identity protection services including credit monitoring for unauthorized activity to the individuals impacted by the breach. But identity theft protection and credit monitoring services will not mitigate the erosion of trust in their ability to provide a secure data exchange. School boards throughout North America will be seriously considering a switch to a more secure solution.
Why the PowerSchool Breach Is a Call to Action for Every School and Business
This breach is not an isolated incident but is part of a growing trend of cyberattacks targeting sensitive data. While there is an ongoing investigation, according to reports, the PowerSchool breach was caused by a user failing to employ multi-factor authentication (MFA) . This is a simple step that can prevent 99% of attempted cyberattacks. There is no excuse in today’s tech-driven environment to expect anything less than full MFA compliance from all users.
This latest breach should serve as a wake-up call to schools and businesses alike. No organization is immune. The stakes are particularly high for educational institutions, where data breaches not only jeopardize privacy but also disrupt learning and erode public trust. Schools have become one of the most prevalent targets because they store such a vast amount of data – data that is valuable to cybercriminals, as they can sell it on the dark web. There has been a 393% increase in attacks on schools since 2016.
The PowerSchool breach highlights the importance of vendor risk management, a zero-trust culture, and the absolute necessity of implanting MFA across the organization.
Steps Organizations and Schools Should Take to Secure Their Data
To prevent similar incidents, schools and businesses must adopt a proactive and multi-layered approach to cybersecurity. Here are critical steps every organization, including schools, must implement:
Conduct Comprehensive Risk Assessments
A network risk assessment can help you be more prepared to handle cyber threats. You can’t defend your network against cyber threats if you don’t understand how all the moving parts work together – including people, policies, processes, software, and hardware. A network assessment can help you to identify potential vulnerabilities in your systems and address them before they can be exploited. Ongoing, thorough risk assessments are crucial for revealing gaps in your security and for staying ahead of emerging threats.
Implement Advanced Security Measures
In addition to standard cybersecurity efforts, such as deploying firewalls, intrusion detection systems (IDS), two-factor authentication, and endpoint protection tools, it is essential for your organization to adopt a zero-trust architecture, to minimize the risk of unauthorized access. Managed detection and response (MDR) is a next-level cybersecurity and vulnerability management solution that goes far beyond simply loading static antivirus software onto your system.
Rather than wait for threats to surface, MDR systems are designed to actively seek out signs of compromise and eradicate threats. MDR services like Sophos MDR, SentinalOne, and CrowdStrike provide advanced threat detection and are capable of learning, so that their capabilities are continually improved and enhanced. These systems monitor your network 24/7, detecting early and responding forcefully to threats, to prevent them from reaching your network.
Strengthen Vendor Management
Require third-party vendors to provide evidence of their cybersecurity practices, such as SOC 2 reports, and include cybersecurity clauses in contracts that specify penalties for non-compliance. For schools especially, now is the time to move to a secure data exchange platform in which PII is anonymized.
Every person outside of your organization who has access to your network can increase the risk to your data. Take into consideration that a third party with access to your network could fall victim to a social engineering attack, putting your data at risk and further compromising information shared with other parties outside of your sphere of influence. The risk can increase exponentially and quickly get out of your control.
Educate Stakeholders
Provide regular cybersecurity training for students, staff, and employees. Ongoing training can help them to recognize phishing attempts and other common threats. Foster a culture of security awareness at all organizational levels. Insist that third-party vendors provide the same level of training, security, and transparency that your organization requires.
Training is an essential component of a strong cybersecurity defence because many hacking attempts involving employees are becoming increasingly sophisticated. It can be hard to differentiate fraudulent access points or requests, and a single click can wreak havoc on your infrastructure. Education, and relaying the importance of cybersecurity information, is how you can build a strong defence against hackers.
Develop a Robust Incident Response Plan
When a security incident is detected, it’s essential to work closely with your managed service provider to investigate the incident, determine its scope and severity, and implement the necessary steps to contain and resolve the issue. This may involve actions that include threat containment, malware removal, system restoration, and the implementation of additional security measures, to prevent similar incidents from occurring in the future.
Ensure your organization has a clear incident response plan for responding to breaches, including steps for containment, communication, and recovery. Test the plan regularly through simulated cyberattacks.
Invest in Cybersecurity Insurance
While prevention is always the priority, having insurance can help mitigate financial losses in the event of a data breach. Cyber insurance is a viable solution for covering losses resulting from a beach, but many Calgary businesses aren’t investing in cybersecurity policies.
The reasons vary for choosing not to obtain cyber insurance, but in many cases, business leaders are averse to the additional cost, believing that their security posture is sufficient enough to make insurance unnecessary or assuming that the risk will fall to their managed service provider.
The Role of Managed IT Services in Data Security
Managed IT service providers play a critical role in helping organizations secure their data. By partnering with a cybersecurity firm like The ITeam, Calgary schools and businesses can:
- Access the latest cybersecurity tools and technologies.
- Benefit from continuous monitoring and threat detection.
- Receive guidance on regulatory compliance and best practices.
For Canadian organizations, leveraging managed IT services is especially important, given stringent FOIP and PIPEDA requirements. Partnering with a trusted provider ensures that your organization stays compliant while minimizing the risk of breaches.
Lessons from the PowerSchool Breach
The PowerSchool breach should serve as an urgent call to action for every organization handling sensitive data. It underscores the importance of vigilance, accountability, and proactive cybersecurity measures. By learning from this incident and implementing robust security practices, school officials and businesses can protect themselves and their stakeholders from future threats. As the digital landscape continues to evolve, so must our approach to security. The time to act is now.
For more information on securing your organization’s data or to explore how managed IT services can support your business, contact us today. Together, we can build a safer digital future.