23andMe, the genetic testing company founded in 2006, is reportedly on the brink of bankruptcy as of October 2024. The company has never turned a profit, and its market value has plummeted by over 97% since its public listing in 2021. This financial turmoil comes in the wake of a significant data breach that affected nearly 7 million users, leading to a class action lawsuit that resulted in a $30 million settlement to compensate affected customers [82ce7e52].
The breach, which occurred in October 2023, allowed unauthorized access to sensitive personal information through credential stuffing attacks. As part of the settlement, 23andMe is offering compensation of up to $10,000 for significant losses, alongside $100 for exposed health information and an additional $100 for residents of certain states [2c85cdcb]. Despite these efforts, concerns about the company's ability to protect genetic data have intensified, especially as CEO Anne Wojcicki assures customers of their privacy amid growing skepticism [82ce7e52].
With over 30 million customers who have taken DNA tests, the direct-to-consumer genetic testing market was valued at $3 billion by 2022. Notably, around 80% of customers consent to the use of their data for research purposes. However, potential risks loom large if 23andMe goes bankrupt, as there are fears that customer data could be accessed or sold [82ce7e52].
In light of these developments, consumers are advised to carefully review data privacy policies before purchasing DNA tests, as the implications of 23andMe's financial instability could have far-reaching effects on genetic data privacy and security [82ce7e52].