23andMe

History

2023

Service hacking, theft of DNA data of millions of users

On December 1, 2023, the American biotechnology company 23andMe announced a hacker invasion. The attackers managed to steal DNA data from millions of users of this genetic service.

According to documents sent to the US Securities and Exchange Commission (SEC), initially cybercriminals gained unauthorized access to approximately 14,000 23andMe accounts, which is about 0.1% of the company's total customer base. To hack these profiles, the tactics of substituting credentials were used: hackers used combinations of logins and passwords that had previously been stolen on other websites. The method is based on the fact that many users use the same credentials on many sites. As a result, attackers were able to access all information in such 23andMe profiles, including health and pedigree information.

23andMe reported a hacker invasion

Further, cybercriminals used the DNA Relatives function, which provides for the exchange of information between people with related DNA. This made it possible to steal information about about 6.9 million 23andMe customers. The attackers had at their disposal such data as names, dates of birth, relations with relatives, geographical location, photos uploaded to their profile, etc. In some cases, hackers gained access to the family tree.

23andMe sends hacking notifications to users whose data has been stolen. The company strongly recommends changing the existing password. In addition, two-factor authentication has become mandatory. 23andMe emphasizes that ensuring privacy and protecting customers' personal information remain top priorities for the company. Third-party experts were involved in the investigation of the incident.^[1]

Cyberattack and Customer Data Theft

On October 6, 2023, 23andMe reported a cyber attack in which attackers were able to steal confidential information about a huge number of customers of this genetic platform. The stolen data is for sale on hacker forums.

According to cybercriminals, they had millions of lines of personal information at their disposal. These are the full names of 23andMe customers, their photos, gender, dates of birth, genetic analysis results, etc. For data sets, attackers ask for from $1 to $10, depending on the number of profiles purchased. For example, a sample of 100 records is offered for $1000, while a set of 100 thousand profiles will cost $100 thousand. 23andMe representatives confirmed the authenticity of the stolen information.

Hacking of genetic service 23andMe: Complete DNA information of millions of users is on sale

According to 23andMe's preliminary investigation, the hackers carried out a Credential-Stuffing attack. Its essence boils down to the fact that cybercriminals use previously stolen sets of credentials to attempt to access other services. The attack is based on the fact that many Internet users use the same logins and passwords on different websites. At the same time, 23andMe emphasizes that as of the beginning of October 2023, there are no signs of hacking the IT systems of the genetic service itself.

At 23andMe, we take safety seriously and are continuing to investigate what happened. We have no evidence that an incident with data security occurred on our systems, the official notice says.

The company has brought in outside experts to investigate. 23andMe recommends that users verify the reliability and uniqueness of their password. In addition, customers should activate Multifactor Authentication (MFA) in their account.^[2]

2021

Purchase of Lemonaid Health Telemedicine Platform

On October 22, 2021, genetic testing service 23andMe announced the purchase of Lemonaid Health. The deal is expected to be completed by the end of 2021. Read more here.

Going public on Nasdaq

On June 17, 2021, the 23andMe genetic testing service went public on the Nasdaq exchange through a merger with the SPAC company VG Acquisition of British billionaire Richard Branson, as a result of which the founder of the startup and former wife of Sergei Brin Anna Wojicki became a billionaire. On the first day of trading, 23andMe shares, which are traded on the stock exchange under the ticker symbol "ME," rose 21%, the startup's valuation reached $3.5 billion.

Anna Voyzhitsky notes that 23andMe sees great prospects both in terms of improving the experience of user interaction with the service and in the development of new products. Approximately 80% of 23andMe's 11 million participants prefer to share their genetic information for drug development research.

Ex-wife of Sergei Brin Anna Wojicki brought the 23andMe genetic testing service to the stock exchange and became a billionaire

For the past 15 years, we've been building the infrastructure to take off, proving to consumers that we can extract information and that they can understand it without a medical professional, "she said.

Wojwicki is confident that the key to the future of the 23andMe service is that consumers want to use the information not only to change their lives, but also to discover new drugs. As of June 2021, 23andMe is implementing 40 programs on its new drug development platform.

We want to ensure that we really have a personalized approach to treatment, the benefit of analyzing the human genome is that all these aggregated data have become therapeutic programs, "Wojrzytski explained. - When I think about the future of therapy, in the next five years I really want to make progress in all our programs and put them into the clinic.

The company has also launched a new subscription product to introduce more content and services for users who seek to take additional steps after receiving their genetic reports. Every week, 23andMe's support team gets calls from customers who want to know how to apply the information they receive to live healthier, longer lives, Wojzytski noted.^[3]

VG Acquisition bought 23andMe

In early February 2021, it became known about the merger of the 23andMe genetic testing service with the specialized acquiring company (SPAC) VG Acquisition, part of the Virgin Group holding, Richard Branson. Once the deal is complete, the combined company's securities will be traded on the New York Stock Exchange (NYSE) under the ticker symbol ME.

23andMe estimates about $3.5 billion. As part of the IPO, 23andMe CEO Ann Wojcicki and Richard Branson are investing $25 million in the company. The following institutional investors also intend to invest in 23andMe: Fidelity Management & Research Company, Altimeter Capital, Casdin Capital and Foresite Capital. After the deal closes, the combined company will receive about $900 million in cash, and the current shareholders of 23andMe will own 81% of the new company. The deal is scheduled to be completed in the second quarter of 2021.

Richard Branson's company bought developer of world's first autosomal DNA tests to compile pedigree

Of the hundreds of companies we've reviewed for our SPAC, 23andMe stands head and shoulders above the rest. As an early investor, I saw 23andMe grow into a company with huge growth potential. Thanks to Ann's vision of empowering consumers and with our support, I am pleased to recognize that 23andMe will be able to make a positive contribution to the lives of many people, "noted Richard Branson.

We have always believed that health care should be determined by consumers, and we have a huge opportunity to help personalize all experiences on any scale, allowing people to take more active care of their health and well-being. We deeply believe that through a genetic approach, we can change the entire health care system, "said Ann Wojczytski.

This deal will provide 23andMe with capital for additional investment in key initiatives to develop the company's consumer health and therapy divisions.^[4]

2020: Raising over $82 million in investments

At the end of December 2020, 23andMe, which is the developer of the world's first autosomal DNA tests to compile a pedigree, raised about $82.5 million in investments.

The Series F funding round was led by Sequoia Capital and NewView Capital, the funds raised by 23andMe plans to spend on business development. Founded in 2006, 23andMe is a leader in popularizing DNA testing for entertainment purposes. Customers pay $99 for a saliva analysis kit, a sample of which is sent for research to the 23andMe team, the company in turn provides DNA analysis that includes details such as pedigree and other human data. As of the end of December 2020, according to 23andMe, more than 12 million people have been tested.

23andMe raised $82.5 million in investments

The activity of 23andMe is based not only on the development of test kits, the company also creates therapeutics based on genetic information provided by customers. In 2018, 23andMe entered into a four-year partnership agreement with GlaxoSmithKline, in which genetic data provided by the company is used in the development of new drugs.

In September 2020, the company published the results of its study on COVID-19, which showed that there is a connection between severe respiratory complications and a certain gene cluster in chromosome 3. The study also showed that there is strong evidence that certain blood types affect the severity of COVID-19 infection, with people with blood type 0 (I) believed to be more favorable for COVID-19.

Analysts believe that additional funding may be required for the company due to the presence of serious problems. 23andMe has struggled after being forced to cut 14% of its workforce, Yahoo Finance said.^[5]

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