Privacy Concerns Rise as 23andMe Files for Bankruptcy: Customers Urged to Delete Accounts

Following 23andMe's bankruptcy filing, New York Attorney General Letitia James warns users to protect their data by deleting their accounts. Concerns mount over data security as the company's genetic information becomes an asset in bankruptcy dealings. The company's partnerships and data usage agreements draw scrutiny amid uncertain future.

New York Attorney General Letitia James has advised 23andMe customers to delete their accounts amid the company's recent bankruptcy filing due to lagging demand for its ancestry testing kits. This comes as users, worried about their privacy, take steps to secure their data.

The ancestry testing firm, which filed for bankruptcy on Sunday, saw its shares plunge to 63 cents as its stock fell 59% on Monday. Known for its saliva-based tests providing genetic ancestry and health risk information, 23andMe's financial struggles now place user data under scrutiny.

23andMe has enabled data-sharing deals with several companies, including British drugmaker GSK, raising concerns over data security. Despite assurances from 23andMe that customer data will remain secure, the situation has prompted users to share account deletion guidelines on social media and reconsider data consent settings.

(With inputs from agencies.)