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Pressure mounts on Canvas as data leak extortion deadline looms

Pressure is mounting on Instructure, the company behind Canvas, as cybercriminals threaten to leak a trove of sensitive data they claim was stolen during a prolonged cyberattack on the widely used education tech platform.

Widespread outages left schools, students and teachers temporarily unable to access critical data late last week after the company took Canvas offline following additional malicious activity, including a defacement of the platform’s login page. By Friday, the company said Canvas — a central hub for K-12 and university coursework, exams, grades and communication — was back online and fully operational. 

ShinyHunters, a decentralized crew of prolific cybercriminals affiliated with The Com, claimed responsibility for the attack on its data leak site and is attempting to extort the company for an unknown ransom amount. Instructure hasn’t confirmed the existence of a ransom demand and declined to answer questions about its response.

The threat group initially set a deadline of May 6 — four days after Instructure previously said the incident was contained soon after it disclosed the attack — claiming it stole 3.65 terabytes of data spanning 275 million records across 8,809 school systems. 

When that deadline passed without payment, ShinyHunters escalated its pressure on the company by “injecting an extortion message directly into the Canvas login pages of roughly 330 institutions, and pivoted to school-by-school extortion with a current deadline of May 12,” Cynthia Kaiser, senior vice president of Halcyon’s Ransomware Research Center, told CyberScoop.

“The scope makes this one of the largest single education-sector exposures we’ve tracked,” she added.

The additional public pressure prompted Infrastructure to take Canvas offline, disrupting schoolwork and access to critical systems nationwide. 

Instructure CEO Steve Daly apologized over the weekend for the company’s inconsistent communication and deficient public response to the cyberattack. 

“Over the past few days, many of you dealt with real disruption. Stress on your teams. Missed moments in the classroom. Questions you couldn’t get answered. You deserved more consistent communication from us, and we didn’t deliver it. I’m sorry for that,” he said in a statement.

Daly acknowledged that the attack, which remains under investigation aided by CrowdStrike, exposed usernames, email addresses, course names, enrollment information and messages. He insisted that course content, submissions and credentials were not compromised.

The temporary but widespread disruption caused has spurred broad concern across the education sector as ransomware experts and threat hunters continue to track developments. The cyberattack also caught the attention of lawmakers on Capitol Hill. 

The House Homeland Security Committee on Monday published a letter to Daly seeking a briefing with him or a senior leader at Instructure by May 21. 

“The recurrence of an intrusion within days of an initial breach disclosure, and Instructure’s apparent failure to fully remediate the underlying vulnerabilities during that window, raise serious questions about the company’s incident response capabilities and its obligations to the institutions and individuals whose data it holds,” House Homeland Security Chairman Andrew Garbarino, R-N.Y., wrote in the letter to Daly.

The committee wants to learn more about the “circumstances of both intrusions, the the nature and volume of data accessed, the steps Instructure has taken and is taking to contain the threat and notify affected institutions, and the adequacy of the company’s coordination with federal law enforcement and the Cybersecurity and Infrastructure Security Agency,” he added. 

CISA did not describe the extent of its involvement in Instructure’s response. “CISA is aware of a potential cyber incident affecting Canvas. As the nation’s cyber defense agency, we provide voluntary support and cybersecurity services to organizations in responding to and recovering from incidents,” Chris Butera, the agency’s acting executive assistant director for cybersecurity, said in a statement.

Instructure’s timeline of the attack has changed and remains incomplete. The company said it first detected unauthorized activity in Canvas on April 29 and immediately revoked the attacker’s access and initiated an incident response. Researchers not directly involved with the formal investigation said ShinyHunters gained access to Canvas at least a few days earlier.

The follow-on malicious activity on May 7 — the defacement of public login pages — was tied to the same incident, the company said. 

“We have since confirmed that the unauthorized actor carried out this activity by exploiting an issue related to our Free-For-Teacher accounts. This is the same issue that led to the unauthorized access the prior week. As a result, we have made the difficult decision to temporarily shut down Free-For-Teacher accounts,” the company said in an updated post about the incident.

Instructure did not answer questions about the vulnerability or explain how attackers intruded its systems. The company said it also revoked privileged credentials and access tokens for affected systems, rotated internal keys, restricted token creation pathways, and deployed additional security controls and monitoring.

Canvas is fully operational and safe to use, the company said, adding that CrowdStrike has reviewed known indicators of compromise and “found no evidence that the threat actor currently has access to the platform.”

Access still remains spotty and unavailable for some Canvas users as school districts restore the platform in phases after conducting their own internal checks.

Halcyon published an alert about the attack Friday, including a screenshot of the message that some school staff, guardians and students encountered before Instructure took the learning management system offline.

ShinyHunters threatened Instructure and all affected schools to contact the threat group and reach a resolution by end of day Tuesday. The cybercrime group, which has a “known pattern of removing victim entries once communications and negotiations have started,” removed Instructure from its data leak site after it defaced the Canvas login pages, Halcyon said. 

ShinyHunters is a notorious data theft extortion group that previously hit major cloud platforms, including Salesforce and Snowflake, via voice phishing, credential theft and supply-chain attacks. 

“Historically, their claims of compromise typically hold up, but they often exaggerate the impact, scale, and type of data stolen,” Kaiser said.

Education is a recurring and consistent target for cybercriminals. Researchers at Halcyon tracked more than 250 ransomware attacks on education institutions globally last year. Yet, the attack on Canvas stands apart from most of these attacks because of its widespread use and downstream impact.

“This is student, parent, and staff data, including minors, which creates downstream phishing and impersonation risk that will outlast the immediate incident,” Kaiser said. 

“By compromising a shared platform used across thousands of schools, ShinyHunters hit the entire education sector in one move, which is the same playbook Clop ran against Oracle EBS customers last fall,” she added. “Among 2026 incidents against critical infrastructure, this is at or near the top for education-sector impact, and it highlights a trend of third-party software vendors now being part of an attack surface, and causing cascading effects across an entire sector.”

Cybersecurity professionals focused on ransomware and data theft extortion consistently encourage victims to not pay ransoms, but they also often acknowledge that companies have to make tough decisions based on their own interests and the security of their customers or users caught up in the aftermath.

Allison Nixon, chief research officer at Unit 221B, said the threat group claiming responsibility for the attack should not be trusted. 

“They are claiming they will delete the data after they are paid, and if they are not paid that they will leak the data,” she told CyberScoop. “This is in line with the past data extortion scams run by the same and related Com actors, who have made false statements to victims and to the public in the past.”

Instructure hasn’t indicated what it plans to do as part of any effort to prevent the leak of stolen data. 

Daly — a longtime security executive who was previously CEO at Ivanti — ended his mea culpa with a pledge to improve communications and provide a summary of a forensics report soon.

“Last week, we made a call to get the facts right before speaking publicly. That instinct isn’t wrong, but we got the balance wrong. We focused on fact-finding and went quiet when you needed consistent updates. You’ve been clear about that, and it’s fair feedback. We will change that moving forward,” he said. 

“Rebuilding trust takes time,” Daly added. “We’re going to earn it back through consistent action and honest communication.”

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Sen. Schumer seeks DHS plan on AI cyber coordination with state, local governments

The Senate’s top Democrat called on the Department of Homeland Security Friday to work closely with state and local governments to defend against artificial intelligence-strengthened hacks. 

Senate Minority Leader Chuck Schumer, D-N.Y., wrote to DHS Secretary Markwayne Mullin to make sure state, local, tribal and territorial (SLTT) governments aren’t left behind as AI models advance, posing new hacking threats.

“There is a race between cybersecurity defenders and AI-enabled hacking — and there’s no time to waste,” Schumer wrote.

“While the White House has reportedly begun hosting meetings about its internal security priorities following these frontier AI cyber breakthroughs, it is glaringly obvious that the Department of Homeland Security needs an updated plan for coordinating these efforts with [state, local, tribal and territorial] governments and implementing procedures to reduce the risk of disruptive cyberattacks enabled by frontier AI,” he stated.

Schumer said he was worried about the capabilities of DHS and its Cybersecurity and Infrastructure Security Agency to carry out that coordination, given federal funding cuts to the Multistate Information Sharing and Analysis Center, and the lack of a Senate-confirmed CISA director for the duration of the second Trump administration.

Schumer wants a plan from DHS by July 1 on coordinating with state and local governments on a range of questions, such as how to identify top AI talent, carry out rapid patching and conduct risk assessments.

“AI is changing the cyber battlefield fast — and we cannot let hackers get there first,” Schumer said in comments accompanying the letter. “Hospitals, power grids, water systems, schools, elections, and emergency services cannot be left exposed while criminal gangs and state-backed hackers race to exploit new AI tools. DHS must immediately help states and localities find and fix vulnerabilities before Americans are hit with outages, disruptions, and attacks that could put lives and livelihoods at risk.”

CISA is using AI to help on the defensive side internally, agency officials recently said.

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Trump officials are steering a cybersecurity scholarship program toward AI

The Trump administration is redirecting a cybersecurity scholarship program that requires recipients to work in government service toward artificial intelligence, leaving some current program scholars dismayed and bewildered.

In an email to participating school program coordinators obtained by CyberScoop, the Office of Personnel Management and National Science Foundation said the CyberCorps Scholarship For Service program would now be known as CyberAI SFS.

“The SFS students we enroll today will not be employable when they graduate in 2-3 years without significant AI background,” the email reads. “Any SFS student in this new program must be proficient in using AI in cybersecurity or providing security and resilience for AI systems. Therefore, new students in the legacy CyberCorps program must learn to acquire AI expertise to augment their cybersecurity expertise.”

“Effective immediately, new SFS scholars will not be accepted to the Legacy CyberCorps(C) program without a description on how they will develop competencies at the intersection of cybersecurity and AI,” the email continues. “The description of the competency development could include, but are not limited to, formal program of study, experimental learning, research activities, capstone projects, competitions, certifications, and/or no-credit professional development via external providers.”

One current program scholar graduating soon said they were “disappointed” by the change for several reasons. As of earlier this week, the agencies collectively running the program — OPM, NSF and the Department of Homeland Security — hadn’t notified any program participants that any changes were on the horizon.

For another: “I was a little bit surprised that it was coming out as so blatantly disregarding the people that haven’t graduated yet, that everyone in my cohort is already considered ‘legacy,’ and the fact that it said people in the program that I’m currently in will not be employable in the coming years,” they said.

The email leaves scholars uncertain about what will happen as they try to fulfill their side of the agreement, especially since doing so has  already been difficult amid cyber job cutbacks and other concerns about how the program has recently been administered. The scholar told CyberScoop there are around 300 people in this current group.

“I assume it will affect placements,” they said. “I can’t say for sure one way or another, because placements are already so impacted by everything that’s been going on. I don’t know what’s due to lack of AI background and what’s due to everything else.”

Another scholar said it was wrong for OPM “to keep claiming repeatedly that they’re acting in our best interests,” when “we’re left out to dry.” Already, the current group of scholars has been frustrated by their inability to get questions answered.

“If we’re legacy CyberCorps, then how does that address anything?” the scholar asked. “We’re just kind of being shoved into a closet and forgotten about. Now in that email, they were saying that we were going to be unhireable in two years time without all this AI stuff under our belt. But at the same time, almost all of our universities were actively discouraging the use of AI.”

Another part of the email brought welcome news to those scholars: a temporary easing of the program’s requirements, including the 70-20-10 rule that sets targets for jobs in the federal government, state and local governments, and the education sector, as well as the rules for securing an internship.. Even so, scholars say they still haven’t received any direct information about the changes.

A spokesperson for NSF said there have been some misunderstandings about the email to school program coordinators (known as principal investigators), but didn’t address current scholars’ concerns about communication.

“The guidance does not require scholars to possess these competencies upon entry,” said the spokesperson, Michael Englund. “Rather, it requires principal investigators (PIs) to clearly describe how their programs will prepare scholars to develop AI-related competencies by the time they graduate (typically within two to three years). In other words, programs must have a concrete and immediate plan to ensure scholars gain these skills during the course of their studies, not prior to admission.”

A spokesperson for OPM addressed the two biggest concerns of current participants.

“There are no changes to placement requirements,” the spokesperson said. “As noted, NSF’s updates are forward-looking to ensure future cohorts are prepared for evolving workforce needs. NSF has encouraged institutions to use professional development funds to expand AI-related training where needed. At OPM, we are also expanding AI training and have introduced AI ambassadors to support adoption.”

On communication: “Principal investigators (PIs) remain the primary point of contact for scholars, but OPM plans to increase direct outreach and plans to issue follow-up communication to scholars on placement efforts,” the spokesperson said.

Last week’s email is the latest turn for the program, with the Cybersecurity and Infrastructure Security Agency last month declaring that it was canceling summer internships due to the lapse in funding for some DHS agencies. Congress has since provided funding for CISA. 

The agency didn’t answer a question about whether that cancellation decision has been reversed as a result.

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One House Democrat is pressing Commerce on the government’s spyware use

A House Democrat who’s been at the forefront of congressional efforts to scrutinize the federal government’s use of commercial spyware wants the Commerce Department to brief Capitol Hill amid apprehension that the Trump administration might further embrace the technology.

Rep. Summer Lee, D-Pa., sent a letter to the department Thursday seeking a briefing on several developments stemming from Immigration and Customs Enforcement acknowledging its use of Paragon’s Graphite spyware, as well as an American company purchasing a controlling stake in Israel’s NSO Group. The Commerce Department sanctioned NSO Group under former President Joe Biden after widespread abuse allegations, including eavesdropping on government officials, activists and journalists.

“The Trump Administration appears to be broadly receptive to using commercial spyware to infiltrate cell phones and allowing U.S. investment in sanctioned spyware companies like NSO Group,” Lee wrote in her letter to Commerce Secretary Howard Lutnick, which CyberScoop is first reporting.

NSO Group’s new executive chairman, David Friedman, is a former Trump ambassador to Israel and was his bankruptcy attorney. He has said in November that he expects the administration will be “receptive” to using NSO Group tech.

“Given those close ties between NSO Group and the Trump Administration, and the serious concerns about how NSO’s technology could be used to spy on Americans, we write to request information regarding the purchase of NSO Group by an American company and the potential usage of NSO Group spyware by federal law enforcement,” wrote Lee, who sits on the Oversight and Government Reform panel and is the top Democrat on its Federal Law Enforcement Subcommittee.

Lee was one of the authors of a recent Democratic letter seeking confirmation of ICE’s use of Paragon’s Graphite, which ICE acknowledged. But they criticized the administration for not answering all their questions, in addition to being outraged.

In her latest letter, Lee asked the Commerce Department to brief Oversight and Government Reform Committee staff about internal department deliberations, Commerce communication with the White House and any outside conversations — including with Friedman — about government use of NSO Group technology or any other commercial spyware, and American investment in NSO.

NSO Group “appears to view the Trump administration as friendly to its interests in the United States, pitching itself as a vital tool for the U.S. government to safeguard national security,” Lee wrote, citing company court filings that it “is reasonably foreseeable that a law enforcement or intelligence agency of the United States will use Pegasus.”

The Biden administration sanctions, and court losses in a case against Meta, represented setbacks for NSO Group’s ambitions. And prior to the U.S. investment firm controlling stake purchase last fall, the Commerce Department under Trump rebuffed efforts to remove NSO Group from its sanctions list.

But the tens of millions of dollars worth of investment, following news that Israel had used Pegasus to track people kidnapped or murdered by Hamas, was a boon.

NSO Group maintains that its products are designed only to help law enforcement and intelligence fight terrorism and crime, and that it vets its customers in advance as well as investigates misuse. News accounts and other investigations have turned up a multitude of abuses.

There have been scattered reports of U.S. flirtation with using NSO Group technology. The FBI acknowledged it had bought a Pegasus license, but stopped short of deploying it. The Times of London reported that “it is believed” the Central Intelligence Agency used Pegasus spyware as part of a rescue mission last month for a U.S. airman downed in Iran.

You can read the full letter below.

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A DOD contractor’s API flaw exposed military course data and service member records

A defense technology company with Department of Defense contracts exposed user records and military training materials through API endpoints that lacked meaningful authorization checks, according to an account published by Strix, an open-source autonomous security testing project.

The issue affected Schemata, an AI-powered virtual training platform used in military and defense settings. According to Strix, an ordinary low-privilege account was able to access data across multiple tenants, including user listings, organization records, course information, training metadata and direct links to documents hosted on the Schemata’s Amazon Web Services instances.

Strix said the exposed materials included a 3D virtual training course for naval maintenance personnel with documentation marked confidential and proprietary, a course containing Army field manuals on explosive ordnance handling and tactical deployment, and hundreds of user records linked to bases and training enrollments. Additionally, the exposed information included names, email addresses, enrollment details and the military bases where U.S. service members were stationed. 

Schemata acknowledged the affected endpoints were exposed May 1, after what Strix described as a 150-day disclosure process. Strix said it verified remediation before publication and published its account earlier this week, 152 days after its initial disclosure attempt.

The reported vulnerability did not require a complex exploit. Strix said it used a low-privilege account to watch normal browser traffic, identify API endpoints exposed through the application, and request high-value data using the same session. According to Strix, those requests returned records from outside the account’s own organization, suggesting the API was not properly enforcing tenant boundaries or user permissions.

In multi-tenant software, authorization controls are intended to ensure users can access only the data and functions assigned to their account or organization. The failure described by Strix would represent a basic breakdown in that model. The firm said some routes also appeared “write-enabled,” meaning a malicious actor could potentially modify or delete courses through update or delete requests, though the account does not say Strix performed destructive testing.

Strix did not respond to CyberScoop’s request for comment. 

Schemata’s platform serves military and defense training environments, where user identities, assignments and course enrollments can reveal sensitive operational context. Even when information is not classified, records showing where service members are based, what training they are enrolled in and which materials they can access may create risks if exposed outside intended channels.

In a statement posted on the company’s website, Schemata said it did not have “evidence that any third party exploited the vulnerability to access customer data.”

The disclosure timeline also raises questions about how companies handling sensitive government-related data receive and respond to vulnerability reports. Strix said it first contacted Schemata on Dec. 2, 2025. According to the account, Schemata’s CEO initially responded, “I would love to hear what the vulnerability is, but I assume you want to get paid for it. Is that the play?”

Strix said it clarified the same day that compensation was not required and that its priority was user safety. It said it sent multiple follow-ups from Dec. 8-29, warning that the vulnerability was critical and asking where to send details. Five months later, after telling Schemata that researchers were publishing the information publicly, Schemata responded, acknowledged the exposed endpoints and said it would patch the issue immediately.

“After we received actionable details about the vulnerability and confirmed the security researcher appeared to be legitimate, our team remediated the vulnerability the same day, and the researcher independently verified the fix before publishing their findings,” Schemata’s statement reads. “We appreciate the security researcher bringing this to our attention and their contribution to the security of our platform.”

Schemata said it’s working with cybersecurity consultants to assist with its response and improve its security posture. The company also said it is in contact with government authorities about the vulnerability.

Defense contractors that handle Controlled Unclassified Information, or CUI, must report cyber incidents to the Department of Defense Cyber Crime Center (DC3). The center did not respond to CyberScoop’s request for comment. 

According to contracting data, the company holds $3.4 million in contracts with the Department of Defense. In May 2025, Schemata announced $5 million in venture funding from several firms, including Andreessen Horowitz. 

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CISA wants critical infrastructure to operate ‘weeks to months’ in isolation during conflict

The Cybersecurity and Infrastructure Security Agency is urging critical infrastructure owners and operators to plan for delivering essential services under emergency conditions – potentially for months at a time.

The federal government’s top cybersecurity agency warned that state-sponsored hackers, particularly two Chinese groups known as Salt Typhoon and Volt Typhoon, continue to threaten critical sectors like electricity, water, and internet. 

The agency is now working with the private sector to protect operational technology – the systems that control the heavy machinery and equipment that powers most critical infrastructure – from attacks that enter through business IT systems or third-party vendor products.

The initiative  — known as CI Fortify – will include CISA conducting targeted technical assessments of critical infrastructure entities and aims to create plans that “allow for safe operations for weeks to months while isolated” from IT networks and third-party tools, according to the agency’s website.

Nick Andersen, CISA’s acting director, told reporters that the goal is “service delivery [that] can still reach critical infrastructure after the asset owner has disconnected with IT and OT, disconnected from third party vendors and service provider connections and disconnected from third party telecommunications equipment.”

Over the past two years, wars in Ukraine, Gaza, Iran and elsewhere have seen water plants, power substations, data centers and other critical infrastructure targeted by kinetic or cyberattacks.

Andersen said the agency has already begun engaging with some companies to pilot the assessments and expects that work to ramp up considerably as CISA hires additional staff in the coming months.

He declined to name the entities involved in the pilot program, but said they will focus on organizations that support national security, defense, public health and safety and economic continuity. He added that CISA’s assessments will vary from sector to sector depending on their unique needs.

“Water isn’t necessarily designed to prioritize specific customer needs outside of recovery periods, while energy and transportation have more immediate tradeoffs for selecting one load or one set of cargo over another,” Andersen said as an example.

One pillar of CISA’s strategy is isolation: essentially turning off all third-party and business network connections to an OT network when facing an emergency or unknown vulnerability.

Organizations also need to develop an internal plan for what acceptable service levels look like under those conditions and reach understandings with their critical customers, like U.S. military installations and lifeline services.

The second pillar, recovery, involves best practices for organizations: backing up files, documenting systems and having manual backups for operations when normal computer systems are down.

In conversations with cybersecurity specialists who focus on critical infrastructure and operational technology, it is widely assumed that China is not the only nation to have broadly compromised Americans critical infrastructure. That hacking groups tied to other nations have almost surely noticed and exploited the same basic vulnerabilities and hygiene issues found by the Typhoons.

Agencies like the FBI and Federal Communications Commission have touted efforts to purge Chinese hackers and work voluntarily with telecoms to harden their network security. But U.S. national security officials and cybersecurity defenders have consistently said both Salt Typhoon and Volt Typhoon remain active threats to U.S. critical infrastructure.

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CISA boasts AI automation improvements to threat analysis, mission support

The Cybersecurity and Infrastructure Security Agency has gotten “by far” the biggest gains from artificial intelligence automation in its security operations unit to help analysts sift through threats, but it’s also proven valuable elsewhere within the agency, CISA officials said Tuesday.

It’s “really allowing those analysts to do triage very fast, so they focus on what matters versus the noise,” Tammy Barbour, acting chief of application management at CISA, said. “They’re able to do a lot of real-time, quick looks before events happen in most places.”

Barbour, speaking at the UiPath FUSION Public Sector event hosted by Scoop News Group, said automation has also been a boon to CISA’s Technology Operations Center.

“The top analysts are able to quickly respond to customers who are reaching out to talk and asking questions, and be able to get real-time efficiencies with that,” she said. 

And it’s been a big help for data migration, Barbour said.

Lauren Wind, acting deputy chief technology officer at CISA, said from her wing of the department, it’s focused on finding benefits from automation in areas like human resources, contracting and finance.

“So we can continue to drive mission, but also accelerate the mission-supporting functions,” she said. “We really want to ensure that our cyber analysts are focusing on the things that matter, like malware.”

But there are some barriers to adoption of the technology, both said.

“We’re still kind of in our infancy,” Barbour said. “But we still struggle with the legacy workflows, processes. We still have some systems that need to be modernized, that we’re currently working towards adoption. People love their spreadsheets. I just can’t force it out of their hands, especially the — sorry, all the accountants in the room, I apologize, but you’ve got to let it go.”

AI governance needs to be laid out in advance, too, and transparently, Wind said.

“One of the biggest things is ensuring that the CTO is driving governance, whether that’s for data, whether that’s for AI,” she said. “I think we’re pretty good on generative, and everyone’s a little bit catching up to industry on agentic.”

How to handle data is another consideration, Wind said.

“Whether you’re on the cloud and you’re serverless or you’re still on prem, if you haven’t figured out what your structure of your data platform looks like, it makes automation a lot more difficult,” she said. 

The comments from Barbour and Wind offered a window into how CISA is viewing AI internally. Much of the agency’s recent work related to AI is focused on advice for safe deployment of agentic AI at other organizations, or examination of the way AI is deepening threats.

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