Blowback when applying for jobs

I am currently thinking about applying to a new job. When doing some research, I found that someone on the desk went to school with my current boss. They graduated in the same year with the same major. I am not sure if this person is the head of the desk, but it seems fairly likely that they would review resumes.

Is there a way that I can apply to this position without jeopardizing my current job? Would using a headhunter give me some degree of protection? Am I being paranoid in thinking that this information would be shared?

More generally, how do I protect myself when looking for a job in this industry? Even if they did not go to school together, it seems likely that they would know each other -- everyone talks to the same brokers, goes to the same conferences, lives in the same places, etc.

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