23andMe Holding Co (NASDAQ:ME) Jewish and Chinese Users
In December 2023, 23andMe (NASDAQ:ME) faced a significant data breach, impacting about 7 million users. Hackers specifically targeted personal genetic data of Jewish and Chinese customers. This sensitive information was sold on the dark web, a detail that 23andMe reportedly hid from affected users. The breach's severity is highlighted by a class action lawsuit claiming that over 1 million Jewish customers' data was leaked following an Israel-Hamas conflict and 350,000 Chinese customers' data was released on request. The lawsuit accuses 23andMe of failing to notify all compromised users or disclose the targeting of Jewish and Chinese customers. The breach has raised serious safety concerns, especially regarding the Chinese government's potential actions against its citizens.
- None identified in the PR.
- 23andMe data breach affected 7 million users' personal genetic information.
- Sensitive data of Jewish and Chinese customers was specifically targeted and sold on the dark web.
- Class action lawsuit accuses 23andMe of hiding the targeted nature of the breach.
- Over 1 million Jewish customers' data was leaked in response to the Israel-Hamas conflict.
- 350,000 Chinese customers' data was subsequently released upon request.
- 23andMe allegedly failed to inform affected users about the specific targeting and sale of their data.
- Potential safety risks for Chinese customers due to government tracking.
Insights
The breach of personal genetic information of approximately 7 million users from 23andMe, including targeted data on Jewish and Chinese customers, has significant implications for the company's financial health and stakeholder trust. Financial Analysts would be keenly interested in the potential
This event also affects investor confidence. Data breaches often lead to negative market reactions as investors reassess the risk profile of a company, considering the potential for future security lapses and the associated costs. In this context, the stock's price could face downward pressure in the short term. From a long-term perspective, ongoing litigation and the potential need to invest heavily in cybersecurity infrastructure could strain financial resources, possibly affecting future earnings and growth.
Moreover, the breach could lead to a loss of customer trust, which can impact revenue generation. Customers may hesitate to use 23andMe’s services, fearing their sensitive genetic information might be compromised. This erosion of trust could lead to a decline in subscription renewals and new user sign-ups, which would negatively impact the company's revenue streams.
From a legal perspective, the breach and the subsequent class action lawsuit against 23andMe present a profound challenge to the company's legal standing. The information provided in the lawsuit indicates potentially serious violations of data protection laws and regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States.
The fact that 23andMe allegedly failed to inform customers about the specific targeting of Jewish and Chinese users and the sale of this data on the dark web may result in accusations of negligence and non-compliance with legal requirements for data breach notifications. This could lead to hefty fines and a directive to implement more stringent data protection measures, further straining the company's resources.
Furthermore, the targeted nature of the breach, particularly against specific ethnic groups, could attract additional scrutiny from regulatory bodies and civil rights organizations, potentially leading to further legal actions and settlements. The ongoing litigation could also result in increased legal costs and distraction for the management team, impacting overall business operations.
From a market research standpoint, this breach could profoundly alter the competitive landscape for 23andMe. The genetic testing market is highly sensitive to trust and privacy concerns. This breach can be a significant deterrent for potential customers who might consider alternative providers with better security reputations. It could also lead to increased scrutiny and higher expectations for data security across the entire industry.
Not only might this affect 23andMe's market share, but it could also impact consumer behavior. Users might become more cautious about sharing personal genetic information, even with more secure providers, reducing the overall market growth potential in the short term. Additionally, the negative press and public relations crisis stemming from this breach could damage 23andMe's brand image, making it harder to retain and attract customers.
Moreover, the targeted nature of this hack may raise broader concerns about data security and privacy, prompting regulatory bodies to impose stricter data protection regulations. This could increase operational costs for 23andMe and its competitors, as they will need to invest more in security measures to comply with new regulations and restore consumer confidence.
NEW YORK, NY / ACCESSWIRE / June 5, 2024 / 23andMe (NASDAQ:ME) was hacked in December 2023, affecting approximately 7 million users of its genetic services website. According to a recently filed class complaint, hackers who infiltrated 23andMe's system were after the personal information of Jewish and Chinese customers, but the company hid that detail when notifying affected customers.
The hackers specifically targeted the personal genetic information of Jewish and Chinese customers and compiled that data - including genetic heritage, names, and addresses - into lists that were then sold on the dark web, but 23andMe concealed both those revelations when it announced the extent of the breach in December 2023.
According to the lawsuit, the hacker leaked a list of over 1 million Jewish customers expressly in retribution for the Israel-Hamas war. The hacker was also more than happy to leak a list of 350,000 Chinese customers upon request from a user with the alias "Wuhan."These lists generated a huge amount of interest from hackers on the dark web from all over the world and were shared and reshared an untold number of times.
The disclosure of these lists threatens the safety of those customers, including from the Chinese government, which has a long history of tracking Chinese citizens.
According to the lawsuit,to this day, 23andMe has not informed the 7 million compromised customers that their personal genetic information was disclosed on the dark web, nor has it told its Jewish and Chinese customers that they were specifically targeted.
IF YOU ARE A VULNERABLE person whose personal genetic information identifies you as having Ashkenazi Jewish heritage or Chinese ancestry, and/or live in California, Illinois, Oregon, or Alaska, please contact us to review your rights and eligibility for compensation:
ADDITIONAL BACKGROUND:
According to a recently filed class action complaint, on Oct. 1, 2023, a hacker using the alias "Golem" leaked the 23andMe data of 1 million Ashkenazi Jews on Breach Forums, calling it "the most valuable data you'll ever see."
"Golem's explicit targeting of Jewish 23andMe users is further conveyed by his use of the character 'Gollum' from The Lord of the Rings - a creature driven by greed with ugly and outsized facial features - as his profile picture."
A few hours later, a user with the alias "Wuhan" asked Golem if he had "Chinese accounts," according to the complaint. The next day, Golem leaked the data of 7 million users, saying in the post that the customer information included phenotype and health information, photos, and identification data.
Golem listed prices for the customer profiles at
Interest in the leaked Jewish and Chinese information was immediate and overwhelming following an Israeli bombing of a Palestinian hospital.
23andMe attempted to shift the blame to customers, telling them the breach was a result of customers using recycled login credentials from their accounts on other websites.Further, 23andMe then waited until December to report that 7 million customers were directly affected by the breach and didn't say anything about the data being sold on the dark web or that Jewish and Chinese customers were specifically targeted.
Levi Korsinsky, LLP is investigating whether affected customers are entitled to compensation. If you have received a notice about the data breach, you may be entitled to compensation. There is no cost or obligation to participate. Follow the link below to find out more:
Levi & Korsinsky is a nationally recognized consumer advocacy law firm that has recovered hundreds of millions of dollars against large corporations. The firm's team of over 70 extraordinary attorneys and professionals have a winning track record going against the most powerful defense attorneys in the world and know how to maximize your compensation. The firm is a
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
https://zlk.com/
SOURCE: Levi & Korsinsky, LLP
View the original press release on accesswire.com
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