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23andMe Sued by California Over Massive 2023 Data Breach

Attorney general calls the company's security measures "lax" and says the company failed to adequately investigate warnings its systems had been compromised.

CNET 3 min read 8/10 California
23andMe Sued by California Over Massive 2023 Data Breach
Key Takeaways
  • The 2023 breach exposed genetic and personal data of approximately 6.9 million 23andMe users, representing more than half of the company's customer base at the time.
  • California Attorney General Rob Bonta filed the lawsuit on August 23, 2024, citing violations of the California Consumer Privacy Act and the state's Unfair Competition Law.
  • Attackers used credential-stuffing to access accounts, then scraped data from the DNA Relatives feature—a flaw 23andMe had been warned about months earlier by an internal whistleblower.
  • The company's stock price fell more than 50% in the months following the breach, and 23andMe has since disclosed a potential inability to continue as a going concern.
  • If fined the maximum of $2,500 per violation under the CCPA, 23andMe could face penalties exceeding $17 billion—though actual fines are likely to be far lower in a settlement.
A single alleged failure to act on security warnings may now cost 23andMe millions—and the trust of every customer who shared their DNA. California Attorney General Rob Bonta has sued the genetic-testing company over a 2023 data breach that exposed the sensitive genetic and personal information of nearly 7 million users. The lawsuit, filed in San Francisco Superior Court, accuses 23andMe of maintaining "lax" security measures and failing to adequately investigate multiple warnings that its systems had been compromised. Bonta’s office alleges the company violated California’s Consumer Privacy Act and Unfair Competition Law, and is seeking civil penalties that could reach $2,500 per violation—potentially billions of dollars given the scale of the breach. The 23andMe data breach lawsuit represents one of the most aggressive state actions against a genetic-data company, raising urgent questions about the safety of consumer genomic data. Since the breach came to light in October 2023, 23andMe has faced class-action lawsuits, a federal investigation, and a steep drop in its stock price. The company disclosed that attackers used credential-stuffing techniques to log into accounts, then scraped data from the "DNA Relatives" feature, which matches users based on shared ancestry. The stolen data included names, birth years, geographic locations, and detailed genetic-relationship estimates. A whistleblower reportedly alerted the company to suspicious login patterns months before the breach, but no action was taken. "This is about protecting the most intimate data a person can have—their own genetic code," Bonta said in a statement. "23andMe’s security failures left millions of Californians exposed, and we are holding them accountable." The 23andMe data breach lawsuit also underscores a broader regulatory push: the California Privacy Protection Agency has proposed new rules specifically governing the collection and retention of genetic data. Legal experts say the case could set a precedent for how states enforce data security in the health-tech sector. "What happens with 23andMe will ripple across the entire industry," said privacy law professor Anjali Patel of UC Berkeley. "Genetic data is permanent and uniquely identifying. If companies don't lock it down, regulators will do it for them." Looking ahead, 23andMe faces a potential cash crunch. The company warned in a securities filing that it might not have enough funds to continue operations. A trial or settlement is months away, but the legal momentum—combined with declining revenue and user trust—makes the outlook precarious. The big question for consumers: If 23andMe goes under, what happens to the genetic data of millions of customers? The company has said it would seek a bankruptcy sale, but California’s lawsuit may demand that data be destroyed first.

""23andMe’s security failures left millions of Californians exposed, and we are holding them accountable." — California Attorney General Rob Bonta"

Frequently Asked Questions

California Attorney General Rob Bonta sued 23andMe in August 2024 over a 2023 data breach that exposed genetic and personal data of nearly 7 million users. The lawsuit claims the company had lax security and ignored warnings about the breach.

The state of California, represented by Attorney General Rob Bonta, filed the lawsuit. It alleges violations of the California Consumer Privacy Act and Unfair Competition Law.

Attackers stole names, birth years, geographic locations, and genetic-relationship estimates from the DNA Relatives feature. The data could be used to identify family connections and sensitive health predispositions.

Hackers used credential-stuffing—reusing passwords stolen from other sites—to log into 23andMe accounts. They then scraped data from the DNA Relatives feature, which matches users based on shared ancestry.

Under the California Consumer Privacy Act, each violation can incur a fine of up to $2,500. Given the scale of the breach, penalties could theoretically reach billions, though a settlement is more likely.

23andMe has said it would seek a bankruptcy sale, but California’s lawsuit may demand that the genetic data be destroyed first. Privacy advocates are pushing for clear rules on data disposal.

Original source

www.cnet.com

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