Hackers have targeted multiple U.S. school districts with extortion attempts using stolen data from PowerSchool, the education software and cloud provider confirmed Wednesday. The company also disclosed it had paid a ransom to the attackers following a significant school data breach reported in December 2024.
Scope of the School Data Breach and Compromised Information
PowerSchool, which serves over 60 million students worldwide, said the breach exposed personal details including names, contact data, birthdates, limited medical alert records, and Social Security numbers. The stolen information was obtained from its U.S. student database during a previous cybersecurity incident.
Extortion Attempts Target Multiple School Districts
The company said it had learned that threat actors recently contacted several school district clients to demand payment. These extortion efforts were directly linked to the previously stolen student information, intensifying the impact of the December data breach.
PowerSchool Paid Ransom to Protect Stakeholders
In a rare admission, PowerSchool revealed that it paid an undisclosed ransom amount to the hackers. The company described the decision as “difficult” but said it acted in the best interest of its customers, students, and communities. PowerSchool stated it received “assurances and evidence” from the hackers that the stolen data would be deleted.
Can paying ransoms really protect student data — or does it risk encouraging future school data breach attacks?