School data breach fallout: Securing sensitive information in educational institutions

Schools have become unexpected targets for cybercriminals. The recent PowerSchool data breach affecting districts across North Carolina is a clear reminder of the vulnerabilities educational institutions face when sensitive information falls into the wrong hands. Months after the breach, schools are still receiving threats and extortion attempts tied to the stolen data—highlighting how these incidents don't end when headlines fade.

The real question for school leaders is: what now? Whether your district has experienced a breach or is working to prevent one, now is the time to evaluate how data is collected, stored, and protected. Having seen firsthand how disruptive and far-reaching the fallout can be, here are key insights on what schools can do now to reduce risk and respond more effectively.

Why schools are vulnerable targets

School systems collect an enormous amount of personal and sensitive information, from student health records and Social Security numbers to disciplinary histories and staff employment files. Yet most districts aren't resourced like banks or hospitals when it comes to cybersecurity. Tight budgets, decentralized systems, and reliance on third-party vendors make schools uniquely vulnerable.

This mirrors the broader cybercrime surge we're seeing across the Carolinas, where sophisticated threat actors increasingly target institutions and businesses of all sizes.

According to a March 2025 report from the Center for Internet Security, an alarming 82% of U.S. K-12 schools experienced at least one cyber incident between July 2023 and December 2024, emphasizing that no district is too small to be targeted.

Threat actors know this. In recent cases, hackers have returned months after a breach to contact schools directly, threatening to leak private data unless paid. These tactics are not only criminal—they're traumatic for the students, staff, and families involved.

What happens after a breach

The immediate focus is often on containment—resetting passwords, notifying authorities, and alerting affected families. But the aftershocks tend to play out for months, sometimes years. Leaked data can surface on dark web marketplaces, be used for identity theft or phishing campaigns, or spark extortion attempts targeting school officials.

Based on real-world breach investigations, here's what school leaders should understand:

• Breach details may evolve: What appears to be a minor vendor issue may reveal deeper systemic gaps or multiple entry points.
• Stolen data can resurface long after the event: It's common for exposed records to show up in fraud cases months—or even years—after a breach, making long-term monitoring essential.
• Victims may face multiple layers of harm: From credit fraud and phishing to reputational damage or emotional distress, the effects are not always immediately visible.
• Legal and regulatory scrutiny can escalate: Affected schools may face investigations, lawsuits, or compliance actions depending on how the breach was handled.
• Trust takes time to rebuild: Communities look for transparency and concrete steps—not just apologies—in the wake of a data breach.

Understanding these long-tail consequences can help schools plan more comprehensively—not only for technical recovery, but also for the social, emotional, and reputational impact a breach can have. While no response will be perfect, clarity and consistency in the aftermath can make a meaningful difference for everyone affected.

How to strengthen your defenses

You can't control what hackers do, but you can reduce your exposure. Here are proactive steps schools can take:

• Audit your data: Know what you're collecting, where it lives, and who has access. Eliminate outdated or unnecessary records.
• Vet third-party vendors: Ask tough questions about encryption, breach history, and incident response protocols before signing contracts.
• Limit data collection: Don't store what you don't need. The less sensitive information you hold, the less you have to lose.
• Train your staff: Human error remains a leading cause of breaches. Offer regular training on phishing, password hygiene, and data access policies.
• Create a layered response plan: Include legal, IT, communication, and external investigative support in your incident response planning.

If a breach happens: What to do first

Even with the best planning, breaches can occur. Here's how to stabilize quickly:

• Secure your systems: Lock down access, isolate affected platforms, and work with IT professionals to determine the point of entry.
• Communicate clearly: Notify stakeholders with transparency and empathy. The goal is to inform, not alarm.
• Track exposed data: Understand what was taken and how it might be used. This guides what actions need to be taken to protect those affected.
• Document everything: Keep a clear record of your response efforts in case of litigation or compliance review.
• Support your community: Offer guidance on identity protection, credit monitoring, and where to report fraud.

Final thoughts

No school expects to be at the center of a data breach. But preparation, clarity, and decisive action can make all the difference in how an institution handles the crisis. By treating data security as a leadership priority—not just an IT issue—schools can better safeguard the trust they hold in their communities.

If your district is dealing with the fallout of a breach or wants to strengthen its investigative response plans, Davis & Forest offers discreet support to help protect your school's people and reputation. Contact us to learn more.