The False Security of Paying Ransom
Click here to view/listen to our blogcast.
Unfortunately, we now have another example that proves that there is no honor among thieves.
In late December 2024, education software provider PowerSchool fell victim to a devastating ransomware attack that exposed records for more than 60 million students and 9 million teachers. Believing they had no choice, PowerSchool paid the ransom and received video “proof” that the attackers had deleted the stolen data. Yet just months later, those same criminals resurfaced—this time targeting individual school districts with fresh extortion demands using the very data they had supposedly erased. The lesson is clear: once you pay, there is no guarantee the threat actor will honor their word.
Ransom payments offer a false sense of security. Even if attackers provide a video or log to demonstrate deletion, there is no independent way to verify that all copies have been destroyed. In many cases, adversaries maintain multiple backups or off‑loaded caches of the data, ready to leverage again. Worse still, the knowledge that an organization is willing to pay only emboldens criminals—creating a lucrative revenue stream that invites repeated attacks.
The PowerSchool saga exemplifies the rise of “double‑dip” extortion. After remitting payment, PowerSchool believed the matter was closed. However, by May 2025, at least four school boards reported new demands for payment, threatening to publish or sell the same December 2024 data if their terms were not met. No new breach had occurred—instead, the attackers simply reused their existing cache, forcing districts back to the negotiating table and entangling PowerSchool in renewed law enforcement and legal scrutiny.
Why Ransomware Actors Can’t Be Trusted
- Profit Motive
Attackers view ransom payments as revenue streams; once they know an organization will pay, they will exploit that willingness repeatedly. - Anonymity and Impunity
Operating from abroad and using cryptocurrencies makes it difficult to hold perpetrators accountable. - Data Multiplication
Even if one copy is “deleted,” attackers often replicate sensitive information to secondary servers, ready for future leverage.
Paying a ransom is a gamble you will almost certainly lose. The only reliable defense lies in building resilience through proactive measures. A robust backup regime—adhering to the “three‑two‑one” rule with at least one offsite or air‑gapped copy—ensures you can restore operations without negotiating with criminals. Immutable storage or write‑once media prevents attackers from tampering with backups during an incident. Network segmentation and strict access controls confine any breach to a limited scope, stopping lateral spread. Regular vulnerability assessments and penetration tests uncover weaknesses before adversaries exploit them. And critically, a well‑developed and frequently exercised Disaster Recovery (DR) and Incident Response (IR) plan transforms chaos into a coordinated, practiced response.
How CDML Can Help
At CDML Computer Services, we understand that data protection is more than just paying a ransom—it’s about building resilience. Our services include:
- Managed Backup & Recovery
Implementing 3‑2‑1 strategies with air‑gapped, immutable backups and automated restore testing. - Incident Response Planning
Crafting and testing IR and DR playbooks tailored to your business needs. - 24/7 Network Monitoring
Leveraging advanced threat detection to catch anomalies before they escalate. - Employee Awareness Programs
Customized training sessions and phishing campaigns to fortify your human firewall. - Compliance Support
Guidance for FERPA, HIPAA, NYDFS 23 NYCRR 500, and more—ensuring your data protection measures align with regulatory requirements.
Final Thoughts
The PowerSchool incident is a stark reminder: ransomware criminals cannot be trusted, and the promise of a one‑off payment is an illusion. By investing in layered defenses, resilient backups, and practiced response procedures, you break the attackers’ cycle of extortion. Reach out to CDML today and turn prevention into your most reliable protection.
Stay safe. Stay informed.
📞 Contact us here: https://cdml.com/contact/
📚 Read more on our blog: https://cdml.com/blog-2
📺 Listen to our blogcasts: https://www.youtube.com/@CDMLComputerServices
