Americans in line to get one-time payment from $30m data breach settlement after customers’ info were stolen by hackers
Customers affected by a massive data breach at genetics testing firm 23andMe could soon receive a one-time cash payment as part of a $30 million settlement. This follows the hacking of nearly seven million user accounts, resulting in the theft of sensitive personal data.
Background of the Data Breach
A class action lawsuit filed in San Francisco accused 23andMe of failing to adequately protect its customers’ privacy. The company faced criticism for not informing clients that certain ethnic groups, particularly those with Chinese and Ashkenazi Jewish ancestry, are often targeted by hackers who sell their data on the dark web.
Hackers exploited outdated passwords to access the accounts, compromising around 14,000 profiles, which are linked to millions more through ancestry tracing. In October, data belonging to over four million individuals in the UK and around one million Ashkenazi Jews was leaked on a Reddit thread and a hacking blog, BreachForums.
In January, 23andMe acknowledged that attackers had stolen health reports and raw genotype data between April and September of the previous year.
Settlement Details and Future Protections
While 23andMe has denied any wrongdoing, the settlement will include cash payments for those whose data was compromised. Additionally, affected customers will have the option to enroll in a three-year program called Privacy & Medical Shield + Genetic Monitoring.
The company stated that the settlement request was reasonable but requested a pause in proceedings for the tens of thousands of people involved, citing its “extremely uncertain financial condition.” It expects that around £25 million will be covered by cyber insurance.
Impact of the Breach
The breach, which occurred in April 2023 and lasted approximately five months, impacted nearly half of the 14.1 million customers in 23andMe’s database at the time. The company disclosed the breach in a blog post in October.
Lawyers representing the plaintiffs in the lawsuit indicated that the main claims from their clients had been addressed. However, the company is currently navigating a difficult financial landscape, with its stock price plummeting from $10 per share three years ago to less than $1 since mid-December.
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