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Friday, June 21, 2024

23andMe Faces a Possible Nasdaq Delisting

23andMe, a company once valued at over $6 billion, faces the possibility of being delisted from Nasdaq as its shares plummet below the $1 mark.

23andMe Data Breach

Two years ago, 23andMe was an important player in the genetic testing market, offering consumers insights into their ancestry, health predispositions, and more, powered by their business model that leverages genetic data for research and pharmaceutical development. However, the company’s fortunes have taken a turn.

In early October, 23andMe disclosed a data breach initially thought to affect a minor fraction of its customer base—specifically, 0.1%, or about 14,000 individuals. However, it later emerged that the breach was far more, impacting approximately 6.9 million users. This discrepancy in numbers raised serious questions about the company’s transparency and data security measures.

The breach primarily compromised the personal information of users who opted into the DNA Relatives feature, which allows for automatic data sharing among users to find potential genetic relatives. Information accessed included names, birth years, relationship labels, DNA-shared percentages, ancestry reports, and self-reported locations. An additional 1.4 million users had their Family Tree profile information accessed, including display names and other personal identifiers.

This security lapse stemmed from customers reusing passwords, making it easier for hackers to gain unauthorized access through brute-force attacks. The breach is particularly troubling because accessing one account could potentially expose the data of connected relatives, thus amplifying the breach’s impact.

23andMe’s Reputation

23andMe’s response to the breach was under scrutiny, especially regarding the delayed and incomplete disclosure of the full extent of the affected users. This incident harms the company’s reputation and raises broader industry concerns about the handling and protection of genetic data.

Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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