It was just another Tuesday in May 2023 when the digital floor fell out from under the National Student Clearinghouse (NSC). You might not know them by name, but if you’ve ever gone to college, they definitely know you. They handle the "boring" stuff—degree verifications, enrollment tracking, and student loan data for nearly every campus in the country.
Then came MOVEit.
Specifically, a piece of file-transfer software that everyone thought was secure. It wasn't. A Russian-linked ransomware gang called Clop (or TA505, if you want to be formal) found a "zero-day" vulnerability. Basically, they found a secret back door before the software makers even knew the door existed. By the time the dust settled, nearly 900 colleges and universities across the U.S. were caught in the crossfire.
The MOVEit National Student Clearinghouse Mess Explained
Honestly, the scale of this thing is hard to wrap your head around. We aren't just talking about a few leaked emails. This hit the bedrock of higher education data. Because the National Student Clearinghouse acts as a central hub for student records, a single crack in their armor exposed millions of people.
The hackers used a technique called SQL injection. Think of it like a thief using a master key to unlock a filing cabinet and then just walking out with the folders. They didn't even have to "break" the encryption; they just asked the software to give them the data, and because of the bug, the software said, "Sure, here you go."
What actually got stolen?
It varied. For some students, it was just "directory information"—stuff like your name and which school you attended. No biggie, right? But for others, it was the "holy trinity" of identity theft:
- Social Security Numbers (SSNs)
- Dates of birth
- Student ID numbers
- Enrollment and degree records
If you’re wondering why this matters in 2026, it’s because this data doesn't expire. Your SSN stays the same. Your birthday doesn't change. Once that stuff is on the dark web, it’s a permanent tool for scammers.
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Why This Specific Breach Was a Nightmare
Most data breaches happen to one company. This one was different because it was a supply chain attack. You probably never gave your data to MOVEit. You gave it to your university. Your university gave it to the National Student Clearinghouse. The Clearinghouse used MOVEit to send that data to lenders or other schools.
It’s like a game of telephone where the person in the middle gets robbed. You did everything right, but you still lost.
By late 2023, the tally was staggering. Cybersecurity firm Emsisoft tracked over 2,500 organizations impacted globally, with the MOVEit National Student Clearinghouse incident being one of the largest "indirect" hits. It wasn't just schools, either. Government agencies like the Department of Energy and giants like Shell were in the same boat.
The $10 Million Settlement and You
Fast forward to 2025 and early 2026. The lawyers got involved. A class-action lawsuit (In Re: MOVEit Customer Data Security Breach Litigation) hammered out a settlement specifically for the NSC victims.
In May 2025, a judge gave the final green light to a $9.95 million settlement.
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If you were one of the people whose Social Security number was exposed, you were likely eligible for a slice of that. The deal included:
- Two years of free credit monitoring.
- Reimbursement for "ordinary losses" (up to $2,500) if you spent money fixing your credit.
- Reimbursement for "extraordinary losses" (up to $10,000) if you actually had your identity stolen because of this.
- A flat cash payment (usually around $100, though pro-rated based on how many people claimed it).
The deadline to file claims was May 26, 2025. If you're just reading this now and didn't file, you've likely missed the boat on the cash, but the security lessons still apply.
Don't Panic, But Stay Sharp
Scammers are patient. They might wait years before using a stolen SSN. They know you've probably forgotten about that letter you got from your registrar's office back in 2023.
The biggest risk now isn't just someone opening a credit card in your name; it's spear-phishing. Since the hackers know where you went to school and when you graduated, they can send very convincing emails. "Hey, there's an issue with your [University Name] alumni account, click here to fix it."
Don't click. Sorta common sense, but worth repeating.
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Actionable Steps for Students and Alumni
If you think you were caught up in the MOVEit National Student Clearinghouse breach, here is what you need to do right now. No corporate fluff, just the basics.
1. Freeze Your Credit
This is the single most effective thing you can do. It’s free. It takes ten minutes. You have to do it at all three major bureaus: Equifax, Experian, and TransUnion. When your credit is frozen, nobody (not even you) can open a new loan or credit card without a PIN. It stops identity thieves cold.
2. Audit Your "Identity Footprint"
Check annualcreditreport.com. You’re entitled to free reports. Look for addresses you’ve never lived at or "inquiries" from banks you don't use. If you see a "hard pull" from a car dealership in a state you've never visited, you've got a problem.
3. Change Your Passwords (The Right Way)
If you're still using "Password123" or the same password for your bank and your old college email, stop. Use a password manager. Enable Multi-Factor Authentication (MFA) on everything. Even if a hacker has your SSN, they can't get into your actual bank account without that secondary code on your phone.
4. Watch for "Urgent" Mail
The settlement administrators and the NSC usually communicate via physical mail for sensitive stuff. If you get a letter about credit monitoring codes, don't throw it away. Those codes are often worth hundreds of dollars in service fees.
5. Verify the Source
If you get a call from someone claiming to be from the National Student Clearinghouse asking for your full SSN to "verify your identity" regarding the breach—hang up. They already have your data; they won't call you to ask for it again. That’s a classic "follow-up" scam.
The reality is that data breaches are the new normal. The MOVEit National Student Clearinghouse event was a wake-up call for how interconnected our info really is. You can't control how a non-profit in Virginia handles your data, but you can control how hard it is for a thief to use it.
Check your reports, lock your credit, and stay skeptical of every "urgent" email that hits your inbox.