The University of Pennsylvania is investigating a cybersecurity incident after unknown hackers gained access to internal email accounts and sent thousands of misleading messages to students, alumni, and staff on Friday morning. The fraudulent emails, which appeared to come from the university’s Graduate School of Education (GSE), contained inflammatory and false statements aimed at discrediting the institution.
The messages, distributed through multiple legitimate @upenn.edu accounts, mocked the university’s data protection standards and included offensive remarks about its internal policies. Some messages falsely claimed the university violated the Family Educational Rights and Privacy Act (FERPA) and threatened to release private student data. Several recipients reported receiving the same message multiple times from different Penn-affiliated senders.
In a statement to media outlets, Penn spokesperson Ron Ozio confirmed that the university’s incident response team is actively handling the situation. He described the email as “fraudulent,” adding that the content “does not reflect the mission or actions of Penn or Penn GSE.” The university emphasized that it is coordinating with cybersecurity specialists to contain the breach and determine the extent of access obtained by the attackers.
Preliminary findings suggest the threat actors may have compromised university email accounts, likely through credential theft or phishing, and used them to send the mass messages. According to reports, the attackers claim to have obtained extensive data including donor, student, and alumni records, and have threatened to leak it online. However, Penn has not verified these claims and continues to assess which systems were affected.
The timing and tone of the hackers’ messages suggest that their motive may extend beyond simple disruption. The emails referenced university fundraising efforts and included statements like “please stop giving us money,” implying an intent to undermine donor confidence. Analysts also noted that the incident followed Penn’s public rejection of a White House initiative known as the “Compact for Academic Excellence in Higher Education.”
That proposal, which several universities declined to sign, sought to impose federal funding conditions that included banning affirmative action in admissions and hiring, freezing tuition for five years, capping international enrollment, and enforcing policies that critics say would marginalize LGBTQ+ and gender-nonconforming students. In response, Penn President J. Larry Jameson had stated that such conditions “conflict with the viewpoint diversity and freedom of expression central to higher education.”
The university has advised all recipients to disregard the fake messages and avoid clicking on any embedded links or attachments. Anyone concerned about personal information exposure has been urged to monitor their accounts and report suspicious activity. Penn has promised to issue direct notifications if any verified data exposure is confirmed.
The growing risk of reputational and data threats faced by universities, which hold vast troves of academic and financial records cannot be more critical. As investigations take place, cybersecurity experts stress that academic institutions must adopt continuous monitoring, strict credential management, and transparent communication with affected communities when such attacks occur.
Microsoft researchers have surfaced a new phishing campaign where cybercriminals are stealing university employees’ salaries by redirecting their payroll deposits to accounts under their control. The group behind the attacks has been named “Storm-2657” by Microsoft.
The hackers have been carrying out these attacks since March 2025, targeting staff at multiple U.S. universities and organizations that use third-party HR and payroll platforms, including Workday.
According to Microsoft’s report, at least 11 employee accounts across three universities were compromised and later used to send phishing emails to nearly 6,000 individuals in 25 universities. The scale of the attack suggests a coordinated attempt to infiltrate university payroll systems through deception and stolen credentials.
How the Attack Works
The attackers send phishing emails that appear to come from legitimate university sources or human resources departments. These emails often carry urgent subjects like “COVID-Like Case Reported — Check Your Contact Status” or “Faculty Compliance Notice – Classroom Misconduct Report.”
When recipients click on the embedded links, they are redirected to fake login pages designed to steal their login details and multifactor authentication (MFA) codes. With these details, the hackers gain full access to the victim’s Workday or HR accounts.
Once inside, the criminals create inbox rules that automatically delete emails from Workday, particularly notifications about payroll or bank account changes, ensuring victims remain unaware of any tampering. They also register their own devices for MFA, allowing them to retain access even if the victim later changes their password.
This enables the attackers to quietly change the employee’s bank account information, diverting salary payments into accounts they control.
Broader Pattern of Business Email Compromise
Experts classify this as a variant of Business Email Compromise (BEC), a fraud method where attackers infiltrate or impersonate legitimate business accounts to redirect payments or steal sensitive data.
According to the FBI’s 2024 Internet Crime Report, BEC scams caused over $2 billion in losses last year alone. Many victims include corporations, suppliers, and even schools that handle large financial transactions through wire transfers or automated clearing house (ACH) systems.
In one notable 2024 case, cybercriminals stole $60 million from a major carbon products supplier, while a Tennessee school district also lost millions through similar fraudulent transfers.
Microsoft and Workday Respond
Microsoft said it has alerted affected institutions and shared recommendations to contain the threat. The company advised organizations to adopt phishing-resistant MFA options, monitor for suspicious inbox rules, and require extra verification for any changes to payroll details.
A Workday spokesperson also encouraged clients to strengthen their MFA policies and implement additional review steps before processing sensitive updates like salary or banking information.
Protecting Employees and Institutions
Cybersecurity experts emphasize the importance of employee awareness and vigilant reporting. Staff should avoid clicking on unsolicited HR emails and instead confirm any urgent requests directly with their university’s payroll or IT department.
With education institutions increasingly targeted by financially motivated hackers, proactive defenses and real-time verification remain the most effective safeguards against salary diversion scams.