DURHAM, N.C. (WTVD) — A new wave of cybercrime is emerging, and authorities say teenagers are behind some of the most significant data breaches in recent years.
In an ABC11 I-Team investigation in collaboration with the ABC News Investigative Unit, we’re uncovering how these attacks could affect you — and why experts say it’s not a matter of if your data will be compromised, but when.
Law enforcement and cybersecurity experts warn that a new generation of young cybercriminals is on the rise. In many cases, they’re getting their start on popular gaming platforms, which can become training grounds for hacking. One of the most alarming examples is the PowerSchool data breach.
I was addicted to hacking. That gave me the most natural high ever. And like it’s indescribable, the adrenaline you get when doing something like that.
– Matthew Lane, PowerSchool hacker
In North Carolina, 4 million people were affected by the breach.
RELATED | Students’ and teachers’ information accessed in data breach of PowerSchool system at WCPSS
“This is a huge impact in NC, we are probably the most impacted state in the country,” said Jeff Jackson, North Carolina Attorney General.
According to the Justice Department, 70 million teachers and students nationwide were potentially affected by the PowerSchool data breach. At the time, PowerSchool software was used by 80% of schools in North America, including Wake County.
“If you’re a kid whose information got stolen, you might not know about it until you go take out your first credit card,” added Jackson.
The Teen Behind the Hack
One of the people behind the breach: Matthew Lane. He was just 19 years old and a freshman in college when he took part in the attack.
“I self-taught myself everything,” Lane said.
Lane spoke with the ABC News Investigative Unit just days before reporting to federal prison.
“I was addicted to hacking. That gave me the most natural high ever. And like it’s indescribable, the adrenaline you get when doing something like that,” he said.
Lane said his path into hacking began in online gaming communities.
“It’s a very toxic and edgy corner of the internet, and like, not a lot of people know that,” he explained. “You see this lavish, luxurious lifestyle that these kids, other people, sometimes adults 20 to 40 years old, and you’re like, as a young kid, like, ‘I want that.’ And then that’s what leads you down the path of greed.”
In college, Lane studied cybersecurity and computer science.
“I was hoping to you know use those skills for you know non-selfish means,” he said.
Despite his intentions to do good, Lane continued to hack. According to court documents, Lane accessed PowerSchool’s network in the summer of 2024 using stolen employee credentials found online. Months later, the company received a ransom demand of more than $2.8 million to prevent the release of sensitive data affecting 60 million students and 10 million teachers.
PowerSchool acknowledged it paid the ransom. Then came the knock at Lane’s dorm-room door.
“This man is pounding at my door saying, ‘FBI. We have a search warrant for Matthew Lane. You need to open this door right now,” he recalled.
Lane was convicted and sentenced to four years in federal prison and ordered to pay more than $14 million in restitution.
“I was so thankful I got caught because I would have never stopped,” Lane said.
Now, he says he wants others to learn from his mistakes.
“I want to help kids not go down that path. I want to be a cautionary tale and tell them that you can, you know, divert the skill — the skill set you have is a blessing. You should be using it not to take but to give to the people,” Lane said.
When it comes to the PowerSchool data breach, Jackson said his department is investigating and says PowerSchool is cooperating.
“They have provided thousands of documents. We have very good evidence,” Jackson said.
In a statement, the company said in part: “PowerSchool appreciates the efforts of the prosecutors and law enforcement who brought this individual to justice. Since the moment we became aware of this incident, we have remained focused on supporting our school partners and safeguarding student, family, and educator data.”
According to Jackson, last year was a record-breaking year for data breaches in North Carolina.
“More than 2,300 data breaches in NC, and that’s a record for us,” Jackson said. “The reason these data breaches are increasing is because people are leaving themselves more vulnerable as we rely more on our digital access. People are opening doors and allowing hackers to come through those doors.”
Experts say protecting your personal information is critical:
- Enable two-factor authentication
- Take advantage of free credit monitoring if offered after a breach
- Consider a credit freeze to prevent accounts from being opened in your name
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