Free NewsletterPro Login

Warning: Undefined variable $stocks in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: Undefined variable $funds in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472
/* the link was here */

Instructure Just Paid Off The Hackers Who Breached Canvas Twice

Published May 13, 2026
Share:
Summary:
  • Hackers known as ShinyHunters stole data on 275 million students and staff in an April breach of Canvas.
  • Instructure reached an agreement with the hackers, who claim the data has been destroyed.
  • The FBI and U.S. government urge ransom victims not to pay, but Instructure paid anyway.

The U.S. government tells victims of cyberattacks not to pay hackers. Instructure just did.

The cost was not disclosed, but the playbook looks a lot like one that already failed at another school software company.

The Deal

Instructure makes Canvas, the school portal used by nearly 9,000 schools to manage student data and coursework.

On April 29, the cybercrime group ShinyHunters broke in. The group says it stole information on 275 million students and staff.

Days later, the same hackers broke in again. They defaced school login pages to push Instructure into paying the ransom.

Now Instructure says it has "reached an agreement" with the hackers, who told TechCrunch the stolen data has been deleted. The company would not say how much it paid.

A ShinyHunters representative told TechCrunch: "The data is deleted, gone. The company and it's [sic] customers will not further be targeted or contacted for payment by us."

For a daily read on stories like this, Market Briefs covers the news that matters to your money in five minutes, plus a free investing masterclass when you join.

Why Paying Hackers Often Backfires

The FBI told victims last week to "not send payment or respond" to extortion demands. Security researchers go further, saying hackers often lie about deleting data so they can keep extorting their victims later.

This is not a new playbook. PowerSchool, another school software company, was hit by a similar attack in 2024. That breach exposed data on 70 million students and staff.

PowerSchool paid the hackers to get the data back. Months later, a different cybercrime group started extorting PowerSchool customers using data that was supposed to be deleted.

Instructure said "there is never complete certainty" when dealing with cybercriminals. The company said its customers should not have to deal with the hackers directly.

What to Watch

The data stolen from Instructure includes student names, personal emails, and private messages between teachers and students.

Instructure says the two breaches were "distinct events" involving different systems. The company is still looking into both.

It's also not clear who at Instructure owns cybersecurity. When asked, the company would not say if CEO Steve Daly plans to resign after the back-to-back breaches.

For investors watching ed-tech, the bigger lesson is that paying ransoms doesn't always end the story. PowerSchool's experience shows stolen data can keep coming back, even after a company thinks it has bought peace.

Insurance, lawsuits, and regulators usually arrive next. None of those costs were on the table when Instructure cut its check.

The FBI said last week it was "aware" of the disruption hitting schools across the country. The agency didn't name Canvas, but it told victims not to send payment.

Instructure paid anyway. Whether that decision quiets the story or just buys time is the part the next few months will answer.

If you want the morning read that connects stories like this back to your portfolio, sign up for Market Briefs - it ships every weekday morning and comes with a free 45-minute investing course.

Disclosure

Recent News

1 2 3 … 102

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

October 5, 2026
What Is the Briefs Connector? A Simple Guide
  • The Briefs Connector lets your favorite AI read Briefs research, like Pro reports and the Briefs Score.
  • Without it, an AI asked about investing can give answers that sound right but aren't backed by that research.
  • It explains the research, but it won't tell you what to buy or sell.
Read More
October 5, 2026
Is a Recession Coming? What the Last Five Rate Hiking Cycles Say
  • The Fed has started raising rates again, and in the last five hiking cycles going back to 1994, a recession never started while the hikes were underway.
  • The pain showed up where there was a bubble to pop - housing in 2008, dot-coms in 2000, the pandemic money-printing boom in 2022 - and usually after the hikes ended.
  • Private equity and private credit are feeling this cycle first, and how far the pain spreads depends on how high rates go and how long they stay there.
Read More
October 2, 2026
Fed Interest Rates May Rise Again in 2026 - and the Newest Culprit Is AI
  • Fed Governor Barr told a meeting our head of investing research attended that higher rates are likely in 2026, lower inflation may not come soon, and AI is now pushing prices up.
  • The same week, President Trump asked the biggest AI companies to police themselves under an accord that's morally but not legally binding, because the White House sees AI as a race with China.
  • Higher rates put downward pressure on asset prices and squeeze borrowers, but the way through hasn't changed: own investments, buy on a schedule, and treat downturns as discounts.
Read More
October 1, 2026
Housing Market 2026: Why Office Buildings Are Cracking Before Houses Do
  • Office buildings are selling for 80% to 95% off because their five-year loans are resetting at much higher rates while half-empty floors have gutted the income those buildings are valued on.
  • Housing is under pressure, not cracking: a $400,000 mortgage costs $975 more a month than at 3%, but six of every seven mortgages are still under 6% and those owners are staying put.
  • Whether pressure turns into cracks is a race between unaffordability and the economy, and either way Jaspreet's rule is to treat your house as a liability and buy only what you can afford.
Read More
September 30, 2026
Dividend Investing vs. Growth Investing: Why the Slower Portfolio Can End Up Bigger
  • "What stock should I buy?" is the wrong first question. Growth, income, or wealth preservation comes first, and the goal changes which stocks even make sense.
  • At $500 a month for 30 years, 13% growth builds about $1.75 million. 10% growth plus a reinvested 4% dividend builds a little more than $2.2 million and pays a little more than $80,000 a year.
  • Income investors have US dividend ETFs, REITs, and international dividend funds to study. Growth investors have the Nasdaq 100, AI and chip funds, and small caps. None of it is a recommendation.
Read More
September 29, 2026
Why Is Gold Going Down? A 5.2% Treasury Yield Just Took Its Job
  • President Trump rejected Iran's deal to reopen the Strait of Hormuz, oil prices jumped back up, and gold fell instead of rising.
  • Treasury yields hit their highest level in more than 20 years, so investors sold gold and bought Treasuries that pay interest.
  • Higher Treasury yields make the national debt, mortgages, car loans, and credit cards more expensive, with the Fed's next rate decision due October 28.
Read More
September 28, 2026
The Strategic Bitcoin Reserve: Why the Government Wants Bitcoin to Explode
  • The US government holds about 328,000 Bitcoin, worth roughly $25 billion, and since a 2025 executive order it keeps seized coins instead of selling them.
  • Washington wants a bigger pile of assets so its $40 trillion national debt looks smaller next to them, which lets it keep borrowing and spending.
  • Bitcoin's wild price swings, and a government holding a coin built to escape governments, are the two risks investors need to watch.
Read More
September 25, 2026
BRIEFS EXCLUSIVE: 43% Of Respondents Say Bills Outran Their Income Over Past Two Years
  • 43% of the 494 Market Briefs readers surveyed said their bills grew faster than their income over the past two years, even though 79% could cover a surprise $5,000 expense tomorrow.
  • Half of readers own gold or crypto, the two classic bets against a weaker dollar, and only 13% bought nothing at all in the last 12 months.
  • The median reader says it takes $150,000 a year to feel financially secure, about $62,000 above the U.S. median household income.
Read More
September 25, 2026
The Economy Is Booming. So Why Did Stocks and Bonds Fall Together?
  • S&P Global says the US economy is growing at its fastest rate since 2021, with corporate profits up 28.9% in a year, almost four times the historical average.
  • Stocks and bonds fell at the same time, which is not how the two markets normally behave, because Treasury yields above 5% now compete with stocks for investors' money.
  • Jaspreet Singh lays out three ways to invest through a shift like this: always be buying, buy the crash, or follow the money before it hits the headlines.
Read More
September 24, 2026
The 2026 Economic Reset Is Starting: Are We in a Recession, or Is the Pain Still Ahead?
  • The Federal Reserve has flipped from stimulating the economy to fighting inflation with higher interest rates, while the White House still wants growth at almost any cost.
  • The national debt tops $40 trillion, has outgrown the entire U.S. economy, and its interest payments are now the government's fastest-growing expense.
  • Higher rates bring pain for private equity, private credit, and speculative assets, but they open opportunities for investors holding cash, treasuries, and value assets.
Read More
1 2 3 … 28
Share via
Copy link