The genealogy company 23andMe is once again finding itself in hot water, as customers are worrying what its financial difficulties mean for their data.
In October, the company fell victim to a massive data breach, as its customers’ personal data was accessed by an outside party. Now, officials are warning the 7 million customers that were affected to consider deleting their data, as more issues may soon be on the horizon.
On Monday, the company filed for Chapter 11 bankruptcy and CEO Anne Wojcicki resigned from her position, which will now be filled by CFO Joseph Selsavage, according to a filing with the U.S. Securities and Exchange Commission.
Professor Ahmed Banafa of San Jose State University, who studies technology and cybersecurity, shared with KCBS Radio that the bankruptcy filing means there could be an increased risk to user data, depending on whether it is purchased by another company.
“They could be bought by another company, and then what’s going to happen to the data of the 14 million users, the genetic data they have there? Who will own it? What’s gonna happen?” he asked.
Banafa noted that the data stored by 23andMe is unique as it involves information the average company won’t be interested in. This includes things like health information from genetic data to the types of medications you are allergic to.
Because of this, most companies won’t be interested in accessing the user data, but those who are adversaries of the United States may be.
“Countries will be interested. Countries who don’t like…the United States who would like to see the genetic map” of the U.S., Banafa said.
Banafa noted that California Attorney General Rob Bonta, who has issued a warning to users to delete their information, has instructions on his website for those looking to be proactive and protect themselves.
As for the company, Wojcicki shared on social media that she still has faith in them to move forward through the Chapter 11 bankruptcy filing, which is used for debt restructuring.
“We have had many successes, but I equally take accountability for the challenges we have today,” Wojcicki wrote on X. “There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering.”