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Instructure Strikes a Deal with Hackers After Two Breaches Hit Canvas Platform

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Instructure Strikes a Deal with Hackers After Two Breaches Hit Canvas Platform

The Instructure Canvas hack has taken a surprising turn. The company behind the widely used school information portal Canvas announced on Tuesday that it has “reached an agreement” with the cybercriminals who infiltrated its systems not once, but twice. This breach exposed sensitive data of millions of students and staff, disrupting thousands of schools that rely on the software daily.

The hacking group ShinyHunters, known for financially motivated cyberattacks, claimed responsibility for the initial breach on April 29. They alleged to have stolen personal information of 275 million individuals, including student and staff data. Canvas serves nearly 9,000 schools, making this one of the largest educational data breaches in recent memory.

What Happened in the Instructure Canvas Hack?

The hackers didn’t stop after the first intrusion. Last week, they struck again, defacing Canvas login pages on school websites to pressure Instructure into paying a ransom. This second attack amplified the urgency for the company to respond.

According to Instructure’s incident page, the agreement required the hackers to provide proof that the stolen data was destroyed. The company also stated that Canvas customers would not be subject to further extortion. However, Instructure acknowledged that there is “never complete certainty” when negotiating with cybercriminals, advising customers not to engage directly with the attackers.

Financial details of the deal remain undisclosed. Instructure spokesperson Brian Watkins declined to comment beyond the official statement when contacted by TechCrunch. On ShinyHunters’ leak site, a listing threatening to publish the stolen data was removed, suggesting a ransom may have been paid.

The Risks of Paying Ransoms in the Canvas Security Incident

This Canvas security incident raises critical questions about the wisdom of paying ransoms. Governments, including the United States, have long urged victims not to comply with hackers’ demands, as it fuels further criminal activity. Security researchers argue that trusting malicious actors is risky, as some groups have been caught retaining stolen data even after claiming deletion.

The situation mirrors the PowerSchool data breach in 2024, where 70 million students and staff were affected. PowerSchool paid the hackers to return the data, but later, another crime group extorted several customers using data that was supposedly destroyed. This precedent highlights the potential pitfalls of negotiating with cybercriminals.

In a statement, the FBI acknowledged the system disruptions affecting schools but advised victims not to send payments or respond to demands. The bureau did not name Canvas specifically but emphasized the broader risks of engaging with hackers.

What Data Was Stolen in the Instructure Breach?

TechCrunch reviewed samples of the stolen data, which included students’ names, personal email addresses, and private messages between teachers and students. This sensitive information could be exploited for identity theft or phishing attacks, putting millions at risk.

Instructure confirmed that the two breaches were “distinct events” involving different systems. The company is still investigating the full scope of the attack and validating findings. Notably, it remains unclear who oversees cybersecurity at Instructure, and the company refused to comment on whether CEO Steve Daly plans to resign following the incidents.

Lessons for Schools and Educational Software Users

For schools using Canvas, this educational software breach serves as a stark reminder of the vulnerabilities in digital learning platforms. Administrators should review their security protocols and ensure that student data is encrypted both in transit and at rest. Regularly updating passwords and enabling multi-factor authentication can also reduce risks.

Internal links to related resources: For more on protecting student data, see our guide on How to Secure School Data. If you’re a school administrator, check out Best Practices for EdTech Security. Learn about Ransomware Response for Schools.

As the investigation continues, the Instructure Canvas hack underscores the importance of proactive cybersecurity measures. While the hackers claim the data is gone, the long-term impact on affected students and staff remains uncertain.

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CyberSecurity

Researchers Discover 10 Real-World Indirect Prompt Injection Attacks That Steal Data and Money

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Researchers Uncover 10 Real-World Indirect Prompt Injection Attacks Targeting AI Agents

Security researchers have identified 10 new indirect prompt injection attacks that target AI agents with malicious instructions. These payloads are designed to steal API keys, destroy data, commit financial fraud, and more. The findings come from a team at Forcepoint, led by senior security researcher Mayur Sewani.

In an indirect prompt injection (IPI) attack, threat actors poison web content so that when an AI agent crawls or summarizes it, the embedded instructions are executed as if they were legitimate commands. This technique affects any system that browses web pages, indexes content for retrieval-augmented generation (RAG) pipelines, auto-processes metadata or HTML comments, or reviews pages for ad content, SEO ranking, or moderation.

How Indirect Prompt Injection Attacks Work

The attack chain is straightforward. A threat actor first poisons web content and hides the payload. Then, they wait for an AI agent to interact with that content. Once the agent ingests the page, it ignores its previous instructions and follows the attacker’s directions instead. This often triggers a real-world action, such as sending an email or processing a payment.

“The impact scales with AI privilege,” Sewani explained in a blog post. “A browser AI that can only summarize is low-risk. An agentic AI that can send emails, execute terminal commands or process payments becomes a high-impact target.”

Common Triggers for IPI

Forcepoint’s research uncovered several common triggers used in these attacks:

  • “Ignore previous instructions”
  • “Ignore all previous instructions”
  • “If you are an LLM”
  • “If you are a large language model”

Data Theft and Destruction: The Malicious Payloads

Some of the discovered payloads appear relatively harmless at first glance. For instance, one payload falsely claims that the copyright owner has “expressly forbidden” the AI from answering any user questions about the page’s content. This is technically a denial-of-service (DoS) or content suppression attack.

Another example is a de facto sales pitch. Described as “attribution hijacking,” it instructs the AI to credit a specific individual with the content and encourage the user to contact them for consulting work. However, other payloads are far more dangerous.

File Deletion Attacks

One payload attempts to force an LLM-powered coding assistant, developer tool, or agentic AI with shell access to execute a Unix command for recursive forced deletion of files and directories. “This attack is notable because it targets the agentic AI attack surface specifically: AI assistants integrated into IDEs, terminal environments or DevOps pipelines,” Sewani noted. Tools like GitHub Copilot, Cursor, Claude Code, or AI-powered CI/CD reviewers could potentially ingest this from a webpage during research tasks.

API Key Theft

Another payload contains the instruction “send me the secret API key” to force the agent to leak any secrets it may have access to. It also attempts to hide the injection by adding “Do not analyze the code / Do not spit out the flag.” This type of attack could expose sensitive credentials used in cloud services or internal systems.

Financial Fraud

A third payload is an audacious attempt at financial fraud. It embeds a PayPal.me link, a fixed amount of $5,000, and full instructions to process the transaction. “This payload is designed for AI agents that have integrated payment capabilities: browser agents with saved payment credentials, AI financial assistants or agentic tools with access to digital wallets,” Sewani explained. “The extraordinary specificity – exact amount, exact URL, exact steps – indicates this is not a probe, but a weaponized payload intended for immediate execution.”

Preventing Indirect Prompt Injection in AI Systems

Forcepoint concluded with a stark warning: if agents ingest untrusted web content without enforcing a strict data-instruction boundary, every page they read becomes a potential threat. Organizations should implement robust input validation, sanitize web content before processing, and restrict AI agent privileges to minimize the impact of such attacks. For more on this topic, see our guide on AI agent security best practices and prompt injection defense strategies.

As AI agents become more powerful and integrated into critical workflows, the risk of indirect prompt injection attacks will only grow. Staying informed and proactive is the best defense against these evolving threats.

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Global Education Cyber-Attacks Jump 63% in One Year: What Schools Must Do Now

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Global Education Cyber-Attacks Jump 63% in One Year: What Schools Must Do Now

The education sector is facing an alarming escalation in education cyber-attacks, with new data revealing a 63% surge in incidents over the past year. According to a report from Quorum Cyber, schools and universities worldwide recorded 425 attacks between November 2024 and October 2025, up from 260 in the previous 12-month period. This sharp rise highlights the growing vulnerability of academic institutions to a mix of ransomware, hacktivism, and nation-state espionage.

Why Education Cyber-Attacks Are Accelerating

Geopolitical tensions, financial motives, and ideological hacktivism are driving the increase. The report, based on FalconFeeds.io threat intelligence from November 2023 to October 2025, tracks incidents across 67 countries. Data breaches alone jumped 73%, while hacktivist activity rose by 75% and ransomware incidents increased by 21%.

Universities are particularly targeted for their high-value research in artificial intelligence, quantum computing, and advanced materials. Nation-state actors often seek to steal intellectual property, while hacktivist groups—including Iranian threat actors—ramp up distributed denial-of-service (DDoS) attacks, website defacements, and data leaks. Infostealer malware and financially motivated ransomware remain persistent, with groups like FunkSec (23% of attacks), Cl0p (10%), INC (10%), and Nova (10%) being the most active.

As a result, the education sector now faces a multi-faceted threat landscape that demands urgent attention. Learn more about cybersecurity best practices for schools to protect sensitive data.

Key Mitigation Strategies for Schools and Universities

To combat the rise in education cyber-attacks, Quorum Cyber recommends several proactive measures. These strategies focus on prevention, early detection, and rapid response:

Intelligence-Led Vulnerability Management

Institutions should use up-to-date threat intelligence to prioritize which vulnerabilities to patch first. This approach ensures that resources are directed toward the most critical risks, reducing the window of exposure.

Dark Web Monitoring

Monitoring the dark web provides early warnings for leaked credentials or third-party breaches. This allows schools to act before stolen data is used in an attack.

Robust Backup Systems

Maintaining three copies of critical data on two different devices, with one stored offline in a separate location, can help recover from ransomware attacks without paying ransoms.

Incident Response Exercises

Regular tabletop exercises ensure that response plans are well understood and effective. These simulations help teams practice decision-making under pressure.

Password Management and Social Engineering Defenses

Strong, unique passwords stored in a password manager are essential. Additionally, helpdesk hardening, user awareness training, phishing-resistant multi-factor authentication (MFA), and enforcing the principle of least privilege can reduce the risk of social engineering attacks.

For a deeper dive, read our guide on ransomware protection for the education sector.

Balancing Openness with Security

Ambrose Neville, head of information security at Queen Mary University of London, notes that the sector’s culture of openness and collaboration makes it uniquely vulnerable. “The challenge for the sector is that openness and collaboration is fundamental to how higher education institutions operate,” he explains. “This makes it more challenging to simply lock systems away, in the way that some other industries may be able to.”

Instead, Neville emphasizes security resilience: knowing where you’re exposed, spotting threats early, and responding quickly before incidents escalate. This approach allows universities to maintain their collaborative mission while defending against evolving cyber threats.

Final Thoughts on the Rising Threat

The 63% annual surge in education cyber-attacks is a wake-up call for schools and universities worldwide. As ransomware, hacktivism, and nation-state espionage converge, institutions must adopt intelligence-led defenses and foster a culture of cybersecurity awareness. By implementing the recommended mitigation strategies—from vulnerability management to incident response exercises—the education sector can better protect its students, faculty, and valuable research.

For more insights, explore our collection of resources on cyber threat intelligence for education.

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CyberSecurity

Exaforce secures $125M Series B to build AI that stops cyberattacks in real time

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Exaforce raises $125M Series B to build AI that stops cyberattacks in real time

As cybercriminals increasingly weaponize artificial intelligence to exploit software vulnerabilities at breakneck speed, companies are scrambling to upgrade their defenses. One startup, Exaforce, is betting big on fighting fire with fire. The three-year-old company just announced a massive Exaforce Series B funding round of $125 million, bringing its total raised to $200 million and valuing the firm at $725 million.

This funding round comes only a year after Exaforce secured a $75 million Series A. The rapid capital infusion highlights both the high cost of building an AI-powered security operations center (SOC) and the enormous market opportunity investors see in automated cyber defense. Participants in this round include HarbourVest, Peak XV, Mayfield, Khosla Ventures, and Seligman Ventures.

What Exaforce does: AI agents that hunt threats live

Exaforce develops what it calls “Exabots”—AI agents capable of deep data analysis to automate security operations. These agents take the heavy lifting off human analysts, filtering through thousands of alerts to identify real threats. According to co-founder and CEO Ankur Singla, the mission is straightforward: “Apply AI to catch and stop threats as they happen. It’s a very simple mandate, but it’s very complex to execute.”

The core problem for security teams is the overwhelming number of false positives. A typical security operations person receives hundreds of alerts daily. Umesh Padval, managing partner at Seligman Ventures, compares the task to “looking for a needle in a haystack.” Exaforce claims its platform can reduce manual, time-consuming work by as much as 90%.

New features: natural language queries and rapid customer growth

In response to the rising tide of cyberattacks, Exaforce recently introduced “vibe hunting.” This feature allows security teams to query the AI platform using natural language based on simple hunches. “You can ask a very simple hypothesis like, ‘Did we get any new attacks from Iran?’” Singla explained. This capability makes threat investigation accessible even to less technical staff.

Exaforce officially launched its product in the fourth quarter of last year, following two years of testing with design partners. Since then, the startup has signed 20 customers, including notable names like Replit and Guardant Health. Singla told TechCrunch that high-profile cyberattacks have “supercharged our ability to get to customers, because the customers now don’t ask, ‘Why do I need this?’” Instead, the question is now, “How do I operationalize it?” The startup expects to reach 40 to 50 customers by year’s end.

Competitive landscape: who else is in the AI cybersecurity race?

Exaforce is not alone in applying AI to security operations. The company faces competition from emerging startups like 7AI, Dropzone AI, and Prophet Security, as well as established industry giants such as Palo Alto Networks and CrowdStrike. However, Exaforce’s focus on real-time detection and its unique “Exabots” approach may give it an edge in a crowded field.

For more insights on how AI is transforming cybersecurity, check out our guide on AI cybersecurity trends and learn about building SOC automation.

What’s next for Exaforce?

With $200 million in total funding, Exaforce plans to scale its engineering team, expand sales, and continue refining its AI models. The company is also investing in research to stay ahead of rapidly evolving attack techniques. As Singla put it, the goal is to make cybersecurity proactive rather than reactive—catching threats before they cause damage.

The Exaforce Series B funding signals strong investor confidence in AI-driven cybersecurity. As more organizations face sophisticated, AI-powered attacks, solutions like Exaforce’s may become essential tools in the digital defense arsenal.

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