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In DNA sale, delete calls, a brand new market panic born

INBV News by INBV News
April 7, 2025
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In DNA sale, delete calls, a brand new market panic born
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Signage at 23andMe headquarters in Sunnyvale, California, U.S., on Wednesday, Jan. 27, 2021.

David Paul Morris | Bloomberg | Getty Images

DNA testing has turn into a worthwhile tool for hobbyists and novice genealogists. For some, learning they’re the tenth cousin of Paul Revere or the fifteenth great nephew 4 times removed of the last King of Prussia is definitely worth the perceived risk of sharing a DNA sample. But what happens when the corporate harvesting the DNA goes bankrupt? 

That was the query posed to tens of millions of Americans last week when 23andMe, the corporate that popularized consumer genetic testing and had early backing from Google, filed for bankruptcy, resulting in a wave of calls for Americans to delete their DNA from the corporate’s database.

While it is not 100% clear if the “delete your DNA” calls were warranted, privacy experts are alarmed, and Americans who had taken the genetic test took the recommendation to heart.

In response to data from online traffic evaluation company Similarweb, on March 24, the day of the bankruptcy announcement, 23andMe received 1.5 million visits to its website, a 526% increase from at some point prior. In response to Similarweb, 376,000 visits were made to assist pages specifically related to deleting data, and 30,000 were made to the shopper care page for account closure. The following day, that figure rose to 1.7 million visits, and rraffic to the delete data help page about 480,000.

Margaret Hu, professor of law and director of the Digital Democracy Lab at William & Mary Law School, thinks Americans made the suitable move. “This development is a disaster for data privacy,” said Hu. In her view, the 23andMe bankruptcy should function a warning as to why the federal government needs strong data protection laws.

In some states, Hu noted, the federal government is taking an energetic role in counseling consumers. The California Attorney General’s Office is urging Californians to delete their data and have 23andMe destroy saliva samples. But Hu says that shouldn’t be enough, and such guidance ought to be provided to all U.S. residents.

The potential national security implications of 23andMe’s data falling into the flawed hands usually are not recent. Actually, the Pentagon had previously warned military personnel that these DNA kits could pose a risk to national security.

Exposing DNA collected from consumers shouldn’t be a brand new issue for 23andMe, either. In 2023, almost 7 million individuals who took the genetic test were already exposed in a significant 23andMe data breach. The corporate signed an agreement that involved a $30 million settlement and a promise of three years’ value of security monitoring.

But Hu says the bankruptcy does make the corporate, and its data, especially vulnerable now.

Drug research and genetic testing data

One in every of the things notable concerning the consumer mindset within the early years of the popularization of genetic testing was that a majority of users opted into sharing their DNA for research purposes, as much as 80% within the years when 23andMe was growing rapidly. Then, as the marketplace for consumer sale of the favored DNA test kits reached saturation ahead of many expected, 23andMe focused more on research and development partnerships with drug firms as a strategy to diversify its revenue.

Currently, when 23andMe sells genetic data to other research firms, most is used at an aggregate level, as a part of tens of millions of information points being analyzed as a complete. The corporate also strips out identifying data from the genetic data, and no registration information (like a reputation or email) is included. Data researchers do need, similar to date of birth, is stored individually from genetic data, and shared with randomly assigned IDs.

Hu is among the many experts concerned these practices could change under 23andMe or any recent buyer. “In a time of monetary vulnerability, firms similar to pharmaceutical firms might see a chance to take advantage of the research advantages of the genetic data,” Hu said, adding that they could attempt to renegotiate prior contracts to extract more data from the corporate. “Will the subsequent company that buys 23andMe do this?,” Hu said of its privacy policies.

In recent days, 23andMe has said it should try to search out a buyer who shares its privacy values.

23andMe didn’t reply to a request for comment.

Anne Wojcicki, 23andMe Co-Founder & CEO pushes the button, remotely ringing the NASDAQ opening bell on the headquarters of DNA tech company 23andMe in Sunnyvale, California, U.S., June 17, 2021.

Peter DaSilva | Reuters

Through the years since 23andMe’s founding in 2006, many purchasers were willing to send in a swab to learn more about their family history. Lansing, Michigan resident Elaine Brockhaus, 70, and her family were excited to learn more about their lineage after they submitted samples of their DNA to 23andMe. But with the company now teetering in bankruptcy and privacy experts concerned about what happens to the tens of millions of individuals with DNA samples stored, Brockhaus says the entire thing has “caused a little bit of a ruckus in my family.”  

“We enjoyed some features of 23&Me,” Brockhaus said. “They continually refined and updated our heritage as more people joined, and so they were higher capable of pinpoint genetically related groups,” Brockhaus said. She was capable of learn more about health risk aspects that were present or not present in her past.

Now, her family has come full circle within the 23andMe experience: some members were initially reluctant to go along, and now, Brockhaus says, everyone has deleted their accounts.

A novel company collapse, but on a regular basis cyber risks

But Brockhaus continues to view 23andMe inside a bigger consumer health market where the risks usually are not recent, and health information is being shared in all varieties of environments where security issues could arise. “Anyone sending ColoGuard or receiving medical results through the mail is taking a risk of exposure,” Brockhaus said. “Our very identities might be stolen with a number of keystrokes. In fact, this doesn’t mean that we must always throw up our hands and comply with be victims, but unless we wish to dig holes out back and live in them we have now to be vigilant, proactive, but not panicked,” she added.

Jon Clay, vice chairman of threat intelligence at cybersecurity firm Trend Micro, says consumers of 23andMe do have to view the bankruptcy as a threat. In any sale process, if the information shouldn’t be transferred and guarded in essentially the most secure manner possible, “it’s susceptible to getting used by malicious actors for various nefarious purposes,” he said.

Clay thinks 23andMe’s data is incredibly worthwhile to cybercriminals — not simply because it’s everlasting and personally identifiable, but additionally because it will possibly be exploited for identity theft, blackmail, and even medical fraud.

“Cybercriminals can use it to focus on consumers with convincing scams and social engineering tactics, similar to fraudulently claiming someone is a blood relative to a different person or to send deceptive messages about their potential health risks,” Clay said. “Organizations who go bankrupt should make sure the security and privacy of their customer’s data is critical, and any sharing or selling of information to others mustn’t be done,” he added.

But other experts say the lesson of 23andMe is less concerning the company’s collapse and the threat to privacy that created than serving as a reminder concerning the on a regular basis cyber hazards related to private information.

“When people start talking about personal data, they forget where their data is already sitting,” says Rob Lee, chief of research and head of college at SANS Institute, which focuses on helping businesses with information security and cyber issues. Whether it’s sending a blood sample into a non-public lab or eliminating a laptop to upgrade to a brand new one, “your digital footprints are being ignored there for people to search out,” Lee said. “People don’t understand the scope, so there may be a bigger discussion on the market, specifically around where does data go?”

With DNA information, there are particular basic legal aspects people should weigh before swabbing themselves and sending the sample in.

In response to Lynn Sessions, an authority on healthcare privacy and digital assets and partner on the law firm BakerHostetler, the federal law that covers patient information privacy, HIPAA, doesn’t apply to this example, and 23andMe wouldn’t be considered a HIPAA-covered entity, or business associate of 1. But there are state laws that apply to genetic information that may be in play, similar to in California.

Meredith Schnur, a managing director and cybersecurity leader at insurance company Marsh, thinks the danger from 23andMe’s bankruptcy for individuals who sent of their swabs is comparatively low. “It doesn’t cause any additional consternation or heartburn,” Schnur said. “I just don’t think it opens up any additional risk that does not exist already,” she said, adding that many individuals’s information is “already on the market.”

Last week, a 23andMe co-founder, Linda Avey, blasted the corporate’s leadership. “Without continued consumer-focused product development, and without governance, 23andMe lost its way, and society missed a key opportunity in furthering the concept of personalized health,” Avey wrote in a social media post. “There are a lot of cautionary tales buried within the 23andMe story,” Avey said.

The bankruptcy itself is the problem that’s now hard for consumers to disregard, and until the sale process is accomplished, the questions will remain.

“While you’re in bankruptcy, data privacy values usually are not what you are really fascinated by. You are fascinated by selling your organization to the very best bidder,” Hu said. That highest bidder, Hu says might take the genetic data and consumer profile data and link them together when selling it to others.

And that initial sale which incorporates the DNA of tens of millions of individuals may only be the primary of many transactions.

“It’d sell it off, piece by piece, indiscriminately. And the client of that data could be a foreign adversary,” Hu said. “That’s the reason this shouldn’t be just an information privacy disaster. It is also a national security disaster.”

We don't know who could buy 23andMe data and how it could be used against us, says Theresa Payton
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