Education technology firm Infrastructure, best known for its widely used learning management platform Canvas, confirmed that it was the victim of a data breach. Yesterday, the ShinyHunters cybercrime group claimed they stole 3.65 terabytes of data from more than 9,000 schools.
We are providing an update on the security incident we advised you of yesterday. While our investigation continues alongside our outside forensics experts, at this stage we believe the incident has been contained.
Here are the steps we have taken since we became aware of the incident. We have:
– Revoked privileged credentials and access tokens associated with affected systems
– Deployed patches to enhance system security
– Out of an abundance of caution, we rotated certain keys, even though there is no evidence they were misused
– Implemented increased monitoring across all platforms
While we continue actively investigating, thus far, indications are that the information involved consists of certain identifying information of users at affected institutions, such as names, email addresses, and student ID numbers, as well as messages among users. At this time, we have found no evidence that passwords, dates of birth, government identifiers, or financial information were involved. If that changes, we will notify any impacted institutions.
Brian Bell, CEO of customer identity and access management platform FusionAuth:
“This is the uncomfortable truth for edtech: student data now moves through a sprawling web of identity systems, APIs, and third-party integrations. Instructure has not confirmed how the attackers got in, but its response shows where the risk had to be contained, privileged credentials, access tokens, and application keys. In edtech, credential governance is student data protection.”
Ensar Seker, CISO at threat intel company SOCRadar:
“The disruption tied to API keys is a strong indicator that identity and access management, not just perimeter security, was the real failure point. When privileged tokens or API credentials are exposed, attackers can bypass traditional defenses and operate as trusted entities. In environments like Instructure’s Canvas, where integrations and automation are core, this creates a high-impact blast radius very quickly.
“The involvement of ShinyHunters and claims of access to a Salesforce instance suggest this may be more than a single-system breach, it points to lateral movement across SaaS ecosystems. Organizations often underestimate how interconnected these platforms are; once attackers gain a foothold, misconfigured integrations and over-permissioned tokens allow them to pivot and aggregate data at scale. Even if highly sensitive fields like financial data or government IDs were not exposed, the combination of names, emails, student IDs, and communications still creates long-term risk. This type of dataset is extremely valuable for phishing, identity correlation, and social engineering campaigns, especially in education, where users are less likely to question trusted platforms.
“The key lesson here is that revoking credentials after the fact is necessary but not sufficient. Organizations need continuous monitoring of API behavior, strict token lifecycle management, and least-privilege enforcement across all integrations. In modern breaches, it’s not just about how attackers get in, it’s about how long they can operate undetected using legitimate access.”
This likely won’t end well in the long term as ShinyHunters is involved. They are on a tear as of late with no end in sight to their spree of hacking anything within their reach.
Iranian APT MuddyWater Disguise Their Operations as a Chaos Ransomware Attack
Posted in Commentary with tags Hacked, Iran on May 7, 2026 by itnerdIranian APT MuddyWater has been found disguising their operations as a Chaos ransomware attack leveraging Microsoft Teams social engineering to infiltrate organizations.
The campaign was characterized by a high-touch social engineering phase conducted via Microsoft Teams, where the attackers utilized interactive screen-sharing to harvest credentials and manipulate Multi-Factor Authentication (MFA). Once inside, the group bypassed traditional ransomware workflows, forgoing file encryption in favor of data exfiltration and long-term persistence via remote management tools like DWAgent. This report deconstructs the infection chain and analyzes the custom “Game.exe” Remote Access Trojan (RAT).
Additionally, this explores the process by which MuddyWater is increasingly leveraging the cybercriminal ecosystem to provide plausible deniability for geopolitical espionage and prepositioning, particularly in the US. The strategy highlights the convergence between state-sponsored intrusion activity and criminal tradecraft, where a big “tell” lies in the techniques that were deployed – and those that weren’t.
This overall strategy suggests the primary goal was not financial gain. It is also further proof of the lines blurring against the background of geopolitical tensions, and that attribution is becoming more difficult if teams do not take it upon themselves to conduct proper and thorough research.
More details here: https://www.rapid7.com/blog/post/tr-muddying-tracks-state-sponsored-shadow-behind-chaos-ransomware/
Ensar Seker, CISO at threat intel company SOCRadar, commented:
“The MuddyWater activity is another example of how state-aligned threat actors increasingly blur the line between cybercrime and cyber-espionage. Using Chaos ransomware as a decoy, provides plausible deniability while also distracting incident responders into treating the intrusion as financially motivated cybercrime instead of a long-term intelligence collection operation. This tactic complicates attribution, delays strategic response decisions, and increases confusion during the critical early stages of an investigation.
The Microsoft Teams social engineering component is particularly notable because collaboration platforms are becoming one of the most effective initial access vectors. Employees inherently trust internal communication tools, and attackers understand that exploiting human familiarity inside business collaboration environments often bypasses traditional email-focused security controls. Organizations should treat Teams, Slack, and similar platforms as high-risk attack surfaces, applying the same monitoring, user awareness, and identity protection strategies traditionally reserved for email and VPN infrastructure.”
Threat actors come in all shapes and sizes. Thus as Mr. Seker says, consider everything to be a potential threat. And I would add to that the fact that nothing should be trusted.
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