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23andMe Files for Bankruptcy Amid Privacy Concerns

Security

Business Honor
25 March, 2025

23andMe files for bankruptcy after a data breach, urging users to delete genetic information for privacy.

23andMe, the well-known DNA testing service, has filed for Chapter 11 bankruptcy protection and is soliciting a buyer. The move comes after a significant data breach in 2023, where hackers gained access to data from almost 7 million customer profiles, causing a sharp decline in the stock price of the company and a $30 million settlement of a class-action lawsuit. In reaction to the incident, California's Attorney General has suggested that users erase their genetic information from the site.

The firm, with more than 15 million customers, has promised to keep protecting user data throughout the possible sale. Nonetheless, there are fears over the treatment of sensitive genetic information. Genetic data, unlike medical records, is exempt from HIPAA legislation, making it susceptible to mismanagement. Though 23andMe has said it will protect customer data, speculation over whose hands the firm may fall into raises fears for privacy.

The users are prompted to erase their data to safeguard their genetic data. The procedure includes signing in to the account, going to the settings, and choosing the option to delete the data permanently. The customers can also withdraw consent for their genetic material to be utilized for research purposes. 23andMe also provides the facility to request the destruction of genetic samples.

Experts such as the Electronic Frontier Foundation (EFF) warn that genetic information is permanent and may expose very personal details. Those with family members who have had their DNA analyzed by 23andMe run the risk that their genetic information is already held by the company. The EFF also pointed to previous cases of DNA information being utilized by police to crack crimes, which brings additional concerns over the misuse of such intimate details.

Considering these privacy and security threats, 23andMe users are encouraged to take proactive measures to erase their information, particularly in the wake of the company's uncertain future.