Illuminate Education Inc.

Illuminate Education Inc.

In 2021, Illuminate Education Inc., an educational technology company providing software for tracking student attendance, grades, and mental health data, suffered a data breach exposing the personal information of **1.7 million New York students**, along with affected students in Connecticut and California. Hackers exploited the credentials of a **former employee** to access unencrypted database files, compromising sensitive data such as **student names, birth dates, and demographic information**. The breach stemmed from the company’s failure to implement basic security measures, including **inactive account deactivation, data encryption, access restrictions, and suspicious activity monitoring**. New York’s Attorney General secured a **$1.7 million settlement** (part of a **$5.1 million multi-state agreement**) mandating stricter cybersecurity protocols, including data encryption, access controls, and anomaly detection systems. The incident underscored vulnerabilities in handling **student data**, eroding trust among schools, parents, and educators.

Source: https://www.lohud.com/story/news/education/2025/11/11/ny-secures-settlement-for-illuminate-education-student-data-breach-demographic-info-compromised/87200229007/

Illuminate Education, Inc. cybersecurity rating report: https://www.rankiteo.com/company/illuminate-education

"id": "ill5492254111125",
"linkid": "illuminate-education",
"type": "Breach",
"date": "6/2021",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"
{'affected_entities': [{'customers_affected': '1.7 million students in New '
                                              'York; additional students in '
                                              'Connecticut and California '
                                              '(total scope unspecified)',
                        'industry': 'Education Technology (EdTech)',
                        'location': 'California, USA',
                        'name': 'Illuminate Education Inc.',
                        'size': 'Serves 17 million students, 5,200 districts '
                                'and schools in the U.S.',
                        'type': 'Educational Technology Company'},
                       {'customers_affected': '750 schools in New York',
                        'industry': 'Education',
                        'location': 'New York, USA',
                        'name': 'New York State Education Department',
                        'type': 'Government Agency'}],
 'attack_vector': 'Compromised credentials (former employee)',
 'data_breach': {'data_encryption': 'No (data was unencrypted)',
                 'data_exfiltration': 'Yes (unencrypted database files '
                                      'downloaded)',
                 'file_types_exposed': 'Database files',
                 'number_of_records_exposed': '1.7 million (New York) + '
                                              'unspecified numbers in '
                                              'Connecticut and California',
                 'personally_identifiable_information': 'Yes (student names, '
                                                        'birth dates, '
                                                        'demographic '
                                                        'information)',
                 'sensitivity_of_data': 'High (includes names, birth dates, '
                                        'demographic info)',
                 'type_of_data_compromised': ['Personally Identifiable '
                                              'Information (PII)']},
 'date_publicly_disclosed': '2023',
 'description': 'New York reached a $1.7 million settlement with Illuminate '
                'Education Inc. after a 2021 data breach exposed the personal '
                'information of 1.7 million students statewide. Hackers '
                'accessed the company’s system using credentials of a former '
                'employee and downloaded unencrypted database files containing '
                'student names, birth dates, and demographic information. The '
                'breach also affected students in Connecticut and California. '
                'The company failed to implement basic security measures like '
                'monitoring suspicious activity, encrypting data, deactivating '
                'inactive accounts, and limiting data access.',
 'impact': {'brand_reputation_impact': 'Significant (loss of trust from '
                                       'students, parents, teachers, and '
                                       'regulators)',
            'data_compromised': ['Student names',
                                 'Birth dates',
                                 'Demographic information'],
            'financial_loss': '$1.7 million (settlement for New York), $5.1 '
                              'million (total settlements across affected '
                              'states)',
            'identity_theft_risk': 'High (personal information exposed)',
            'legal_liabilities': '$5.1 million in settlements across multiple '
                                 'states (New York, Connecticut, California)',
            'systems_affected': ['Illuminate Education’s database systems']},
 'initial_access_broker': {'entry_point': 'Compromised credentials of a former '
                                          'Illuminate Education employee',
                           'high_value_targets': 'Student databases (academic, '
                                                 'behavioral, and demographic '
                                                 'data)'},
 'investigation_status': 'Completed (settlement reached)',
 'lessons_learned': ['Importance of deactivating inactive user accounts '
                     'promptly',
                     'Necessity of encrypting sensitive data (especially '
                     'student records)',
                     'Need for continuous monitoring of suspicious activity',
                     'Limiting data access to authorized personnel only',
                     'Proactive cybersecurity measures to prevent '
                     'credential-based attacks'],
 'post_incident_analysis': {'corrective_actions': ['Implementation of stronger '
                                                   'cybersecurity policies '
                                                   '(per settlement)',
                                                   'Data encryption for '
                                                   'student records',
                                                   'Access limitation '
                                                   'protocols',
                                                   'Anomalous activity '
                                                   'monitoring system'],
                            'root_causes': ['Failure to deactivate former '
                                            'employee credentials',
                                            'Lack of data encryption',
                                            'Inadequate monitoring for '
                                            'suspicious activity',
                                            'Overly permissive data access '
                                            'controls']},
 'recommendations': ['Implement multi-factor authentication (MFA) for all user '
                     'accounts',
                     'Regularly audit and deactivate inactive or former '
                     'employee accounts',
                     'Encrypt all sensitive data at rest and in transit',
                     'Deploy anomaly detection systems to monitor for '
                     'unauthorized access',
                     'Conduct third-party security assessments and penetration '
                     'testing',
                     'Train employees on cybersecurity best practices and '
                     'phishing awareness'],
 'references': [{'source': 'The Journal News/lohud & USA Today Network'},
                {'source': 'Office of Attorney General Letitia James (New '
                           'York)'}],
 'regulatory_compliance': {'fines_imposed': '$1.7 million (New York), $5.1 '
                                            'million (total across affected '
                                            'states)',
                           'legal_actions': 'Settlements with attorneys '
                                            'general in New York, Connecticut, '
                                            'and California'},
 'response': {'communication_strategy': 'Public statement by New York Attorney '
                                        'General Letitia James; settlement '
                                        'announcements',
              'enhanced_monitoring': 'Established as part of settlement '
                                     'requirements',
              'remediation_measures': ['Adoption of stronger cybersecurity '
                                       'measures (post-settlement)',
                                       'Policies to limit access to student '
                                       'data',
                                       'Data encryption for student records',
                                       'System to monitor anomalous activity']},
 'stakeholder_advisories': 'Public statements by New York Attorney General; '
                           'advisories likely issued to affected schools and '
                           'districts',
 'threat_actor': 'Unknown hackers',
 'title': 'Data Breach Exposing Personal Information of 1.7 Million New York '
          'Students',
 'type': 'Data Breach',
 'vulnerability_exploited': ['Lack of monitoring for suspicious activity',
                             'Unencrypted data storage',
                             'Inactive user accounts not deactivated',
                             'Excessive data access privileges']}
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