Genetic testing company 23andMe is facing a wave of consumer backlash and privacy concerns following reports that it is on the verge of bankruptcy. Cybersecurity experts and privacy advocates are now urging users to delete their genetic data from the company's database, warning that a financial collapse could put sensitive personal information at risk.

Financial Troubles and Bankruptcy Fears

Once a trailblazer in consumer DNA testing, 23andMe has reportedly been struggling with declining sales, legal battles, and mounting operational costs. Industry analysts suggest that the company’s financial woes have worsened due to shifting consumer sentiment regarding data privacy, increased competition, and the fallout from a major security breach in 2023.

Earlier this year, reports surfaced that 23andMe was exploring options to sell parts of its business or file for bankruptcy protection. While the company has not yet confirmed its plans, insiders claim that liquidity issues and declining subscriptions have put it in a precarious position.

Privacy Concerns and Data Security Risks

With the possibility of a bankruptcy filing, privacy advocates fear that customer genetic data could be sold, transferred, or improperly handled. DNA data is among the most personal and irreplaceable forms of personal information, as it contains an individual's genetic blueprint, predisposition to diseases, ancestry information, and more.

Experts warn that in the event of financial collapse, 23andMe’s vast DNA database could become an asset in bankruptcy proceedings, potentially making it available to creditors or even third-party buyers. This raises serious ethical and legal concerns about who would have access to the data and how it could be used.

Major Privacy Risks Include:

1. Sale of Data to Third Parties – Bankruptcy proceedings could lead to 23andMe selling its data assets to cover debts, potentially exposing sensitive consumer information to unknown entities.

2. Security Vulnerabilities – A company in financial distress may struggle to maintain robust cybersecurity measures, increasing the risk of data breaches.

3. Regulatory Loopholes – While U.S. and international privacy laws provide some protections, bankruptcy court rulings could override user agreements, allowing data transfers without user consent.

4. Use by Insurance Companies or Employers – Genetic data, if accessed by insurers or employers, could be misused for discriminatory practices, despite existing laws like the Genetic Information Nondiscrimination Act (GINA).

Call for Users to Delete Their Data

In response to these concerns, privacy organizations and cybersecurity experts are urging millions of 23andMe users to delete their data before it potentially falls into the wrong hands.

How to Delete Your 23andMe Data:

1. Log into Your 23andMe Account and navigate to the "Privacy & Settings" section.

2. Request Data Deletion under "Manage Your Data," selecting the option to delete both your account and genetic data.

3. Submit a Formal Request to 23andMe’s customer support, ensuring that both raw DNA data and personal details are erased.

4. Withdraw Data Sharing Permissions if previously granted to third parties or research projects.

5. Monitor Your Email for Confirmation and follow up to ensure the process is completed.

Consumer rights advocates stress that even if users delete their accounts, there is no guarantee that all genetic data will be erased immediately, as some records may have already been shared with research partners or stored in backups.

The 2023 Data Breach: A Warning Sign

This is not the first time 23andMe has faced scrutiny over data security. In 2023, the company suffered a massive cyberattack, where hackers accessed the personal genetic data of nearly 7 million users. The stolen information, which included ancestry details and health-related genetic markers, was later found for sale on the dark web.

Following the breach, thousands of users filed lawsuits against the company, alleging negligence in protecting sensitive data. The breach significantly damaged the company’s reputation and reportedly led to a drop in consumer trust, contributing to its current financial troubles.

What’s Next for 23andMe?

While 23andMe has not officially commented on the bankruptcy speculation, sources close to the company suggest that executives are exploring last-ditch efforts to restructure or sell parts of the business. Some reports indicate that potential buyers, including pharmaceutical companies and private equity firms, have shown interest in acquiring its biobank and analytics technology.

However, the fate of consumer genetic data remains uncertain, and regulatory bodies may step in to prevent misuse. Lawmakers and consumer protection agencies are already calling for stricter genetic data privacy laws to prevent similar risks in the future.

What Should Users Do Now?

• Act quickly to delete personal data before any bankruptcy proceedings.

• Monitor email alerts from 23andMe regarding potential data handling changes.

• Be wary of phishing scams that may arise from leaked personal information.

• Consider alternative DNA testing services with stronger privacy policies.

As the situation unfolds, consumers are left questioning how safe their genetic information truly is in the hands of private companies. The collapse of 23andMe could serve as a wake-up call about the risks of sharing DNA data with commercial entities—reminding everyone that once their genetic blueprint is out there, it may never be fully erased.