The genetic testing company 23andMe has filed for bankruptcy, prompting people who’ve used the service and sent in DNA samples to be analyzed to wonder what will happen to their genetic data. The company says the filing does not change how it stores, manages or protects customer data. But some privacy experts are recommending that people who have used 23andMe delete their data, given concerns not only about a potential buyer getting access to sensitive information, but also hackers who might take advantage of the upheaval to gain access to it. “What we’re witnessing with 23andMe is a stark wake-up call for data privacy,” said Adrianus Warmenhoven, a cybersecurity expert at NordVPN. “Genetic data isn’t just a bit of personal information — it is a blueprint of your entire biological profile. When a company goes under, this personal data is an asset to be sold with potentially far-reaching consequences.” What happened to 23andMe? 23andMe filed for Chapter 11 bankruptcy protection on Sunday. Anne Wojcicki, who co-founded the company nearly two decades ago and has served as its CEO, stepped down effectively immediately. The San Francisco-based company said that it will look to sell “substantially all of its assets” through a court-approved reorganization plan. Wojcicki’s resignation comes just weeks after a board committee rejected a nonbinding acquisition proposal from her to take the company private. Wojcicki still intends to bid on 23andMe as the company pursues a sale through the bankruptcy process. In a statement on social media, Wojcicki said that she resigned as CEO to be “in the best position” as an independent bidder. 23andMe says that filing for Chapter 11 bankruptcy protection will help facilitate a sale of the company, meaning that it’s seeking new ownership. The company said it wants to pull back on its real estate footprint and has asked the court to reject lease contracts in San Francisco and Sunnyvale, California and elsewhere to help cut costs. But the company plans to keep operating during the process. Is my DNA data safe? In a post about the Chapter 11 process, 23andMe said its users’ privacy and data are important considerations in any transaction and that any buyer will be required to comply with applicable laws when it comes to how it treats customer data. But experts note that laws have limits — for instance, the U.S. has no federal privacy law and only about 20 states do. There are also security concerns. For instance, the turmoil of a bankruptcy and related job cuts could leave fewer employees to protect customers’ data against hackers. It wouldn’t be the first time — a 2023 data breach exposed the genetic data of nearly 7 million customers at 23andMe, which later agreed to pay $30 million in cash to settle a class-action lawsuit accusing the company of failing to protect customers whose personal information was exposed. Experts note that DNA data is particularly sensitive — and thus valuable. “At a fundamental biological level, this is you and only you,” said David Choffnes, a computer science professor at Northeastern University and executive director of its Cybersecurity and Privacy Institute. “If you have an email address that gets compromised, you can find another email provider and start using a new email address. And you’re pretty much able to move on with your life without problem. […]
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