Genetic testing company 23andMe is filing for bankruptcy with the U.S. Bankruptcy Court for the Eastern District of Missouri. With the company going out of business, fears are rising regarding its highly sensitive genetic testing data being used by hackers for malicious purposes.
The company released a press statement announcing that it had initiated voluntary Chapter 11 proceedings and intends to sell “substantially all of its assets” to maximise the value of its business. The statement also claims there are no changes to “the way the company stores, manages, or protects customer data.”
Additionally, any buyers for the data will be required to comply with applicable laws regarding customer data. Regardless, government bodies and security researchers alike are spooked. 23andMe has a history of data breaches, facing multiple attacks and leaking millions of genetic data over dark web forums.
The ambiguity around customer data sales has led to fears of highly sensitive information being sold without privacy laws protecting it being enforced. Once in the wrong hands, this data can be used for anything from identity theft to genetic discrimination, extortion, and even highly targeted social engineering attacks.
Even if the data is sold to a legitimate company, it could be used by health insurance, claims processing, and data brokerage firms to withhold insurance payouts. Another consumer-harming use case would be refining algorithms and training AI models that “assess health risks, determine coverage eligibility, or even discriminate against people based on their genetic profiles,” claims Nick Tausek, lead security automation architect at AI security automation firm Swimlane in a conversation with DarkReading.
Various government bodies are also warning concerned users. The Attorney General of California issued a statement asking users to delete their 23andMe data immediately. The Information Commissioner’s Office in the UK and the Privacy Commissioner of Canada also issued statements warning customers of the sale.
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