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Microsoft Commits to Sweeping AI Privacy Rules for Students. Will Other Tech Giants Follow?
Microsoft signed legally binding AI privacy and safety standards for schools with the American Federation of Teachers, effective November 1.
Microsoft's agreement with the American Federation of Teachers prohibits using student or educator data to train AI systems, bans selling data or using it for ads and product development, and forbids AI companions designed to foster emotional dependency, with third-party audits required. The standards apply to all schools under Microsoft contract starting November 1. NYC and LA school districts announced one-year moratoriums on student AI use, while OpenAI and Anthropic pursue similar pacts and Google remains noncommittal.
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Two-year university study finds banning AI from classrooms leaves students worse off
A two-year university study found students banned from using ChatGPT performed worst, while formal prompt-engineering training advantages faded as everyday AI familiarity grew.
Researcher Schrepel ran a classroom experiment in 2024 (66 students) and 2025 (164 participants) comparing a no-AI group, unguided ChatGPT users, and trained students revising EU AI Act provisions. The no-AI group finished last both years, hitting 'idea exhaustion' after 10-15 minutes, while the trained group's advantage nearly vanished by 2025 as everyday chatbot familiarity rose. Schrepel now argues blanket AI bans harm outcomes and universities should rethink bans and pure literature-review theses.
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Massachusetts school district, city hall shutter after cyber incidents
Springfield Public Schools (23,000 students) and Everett city hall in Massachusetts closed after weekend cyber incidents disrupted essential systems.
Springfield Public Schools, serving 23,000 students across more than 60 schools, closed buildings on Tuesday to investigate a cyber incident that disrupted systems needed for essential operations, including phones and attendance reporting. Separately, Everett, Massachusetts (population over 50,000) closed City Hall to the public after a cyberattack discovered Sunday evening impacted its internal network, though police, fire, public works and schools operate normally. The article notes multiple universities and K-12 districts have announced cyberattacks in recent weeks as hackers exploit the new school year for ransom leverage.
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Attackers Exploit PaperCut Flaws to Steal Credentials From Schools and Universities
Attackers exploit newly disclosed PaperCut auth bypass CVE-2026-81578 and RCE CVE-2026-82078 to steal credentials from schools and universities in the US and Europe.
Arctic Wolf observed threat actors chaining CVE-2026-81578 (authentication bypass) and CVE-2026-82078 (remote code execution) in PaperCut to execute commands, perform reconnaissance, and create privileged accounts on servers at K-12 schools and universities in the US and Europe. Post-exploitation includes registry hive collection with lsa_collect.exe delivered via certutil, Meterpreter Java payloads from 194.180.48.134, and searches of PaperCut config files for passwords, LDAP bindings, and tokens. Stolen logins could provide a pathway into other critical systems across compromised environments.
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McKesson copes with fallout from data theft extortion attack
McKesson discloses a data theft extortion attack by ShinyHunters affecting oncology and medical-surgical customers, with a reported $55 million demand.
McKesson disclosed that attackers gained access to some of its third-party applications and stole data associated with a subset of customers in its oncology, multispecialty, and medical-surgical business units; the intrusion ran for four days from August 21 and was discovered August 25. ShinyHunters claimed responsibility and listed McKesson on its data-leak site, reportedly demanding more than $55 million with a September 1 deadline. Flashpoint analysts say the group typically uses social engineering and identity weaknesses with valid credentials to access cloud-hosted environments, making the intrusion hard to detect. McKesson, which distributes about one-third of pharmaceuticals used in North America with $403.4 billion in annual revenue, says operations continue and it has reasonable assurance of no ongoing unauthorized activity.
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PaperCut warns of hackers using printer management software flaw in attacks
PaperCut warns of active exploitation of CVE-2026-82078 and CVE-2026-81578 in NG/MF print management software used by universities, corporations, and governments.
PaperCut issued an emergency advisory saying vulnerabilities in PaperCut NG and MF, tracked as CVE-2026-82078 and CVE-2026-81578 with severity scores above 8.8, are under active exploitation with confirmed customer incidents. Huntress reported at least two customers impacted, and an initial patch was revised with input from Huntress and watchTowr researchers. PaperCut software is widely deployed at universities, corporations, and governments managing printers from Canon, Epson, Xerox, and Brother, and the vendor urged removing server web interfaces from the public internet. Previous PaperCut flaws were used by ransomware gangs like Bl00dy and Clop, and CISA has warned the education sector is particularly exposed.
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