The dangers of a data breach: Lessons from the 23andMe collapse

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The dangers of a data breach: Lessons from the 23andMe collapse

By Cian Fitzpatrick | 7th April 2025

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Unfortunately, we hear the term “data breach” so often now, it can sound like white noise. The risk is that we get complacent about yet another company caught napping with regards to their data compliance responsibilities.

However, beneath the buzzword lies a deep and often irreversible threat. And one that can have horribly serious consequences. From personal privacy violations to long-term reputational damage, data breaches are far more than technical hiccups. In reality, they’re breaches of trust, security, and most alarmingly, sometimes even identity.

One of the most recent examples is the downfall of genetic testing giant 23andMe.

Table of Contents

  1. When your DNA is on the line
  2. Why data breaches are so dangerous
    • Loss of control over personal data
    • Trust is shattered
    • Legal and regulatory fallout
    • Financial impact
  3. Email: The weakest link in the chain
  4. How Topsec helps businesses stay secure
    • Email filtering and threat detection
    • DMARC, SPF and DKIM implementation
    • 24/7 monitoring and support
    • Archiving and compliance
    • Employee training and awareness
  5. The broader risks for businesses
  6. What consumers can do
  7. What businesses must learn
  8. Final thought

When your DNA is on the line

23andMe, once valued at $6 billion, allowed consumers to uncover ancestral and health-related genetic data through a simple saliva test. With over 15 million users, it held one of the largest private DNA databases in the world. But in 2023, the company suffered a massive data breach affecting 6.9 million accounts. As a result, a trove of sensitive genetic and personal information is now exposed.

Now, in March 2025, the company is filing for bankruptcy. Amidst the financial turmoil, the co-founder Anne Wojcicki has stepped down as CEO and the company is actively seeking a buyer.

Of course the bankruptcy news is a big deal. But the far bigger story is what will happen to the fate of all the customer DNA data that 23andme holds? What happens to the genetic profiles if the company is bought? Who will have access to them? Under what terms? How protected, if at all, is this data? 

These aren’t just theoretical questions. Instead, they’re a wake-up call for individuals and businesses alike.

Why data breaches are so dangerous

A data breach is dangerous for more than one reason. 

1. Loss of control over personal data

Remember that in most breaches, it’s personal information that is being lost, not just random numbers. It’s names, addresses, health histories, login credentials and more. This is already serious enough, but in 23andMe’s case it goes  even deeper: people’s genetic blueprints are now exposed. Unlike a credit card, you can’t “cancel” your DNA. Once it’s exposed, it’s out there forever.

2. Trust Is shattered

When consumers hand over data to a company, there’s an implicit trust contract. A breach doesn’t just compromise data. It smashes the trust contract into a thousand pieces.

23andMe had built a brand around empowerment and scientific curiosity. But after the breach, users began to question the very foundation of that promise. Reputational damage like this is often fatal.

3. Legal and regulatory fallout

Depending on jurisdiction and the nature of the data, companies that suffer breaches can face significant legal consequences. But the 23andMe case highlights a glaring problem; protections around data, especially genetic data, are patchy.

In the U.S., HIPAA, the main U.S. health privacy law, doesn’t apply to direct-to-consumer biotech firms. And while some U.S. states offer stronger consumer protections, there’s no consistent federal legislation. That leaves consumers exposed and companies vulnerable.

4. Financial impact

Breaches are expensive. According to IBM’s 2024 Cost of a Data Breach Report, the average cost of a breach was $4.88 million. For 23andMe, it marked the beginning of the end. Customer trust dropped and revenue collapsed. By 2025, the company’s valuation had cratered from billions to under $50 million.

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Email: The weakest link in the chain

When we talk about data breaches, it can sound like data was hacked in a dramatic Hollywood thriller kind of way. The truth is far more mundane. In reality, most data is hacked through an organisation’s most common entry point – email.

Phishing, spoofing, compromised credentials and social engineering attacks all begin in your inbox. And for businesses, the consequences can be devastating, from ransomware attacks to business email compromise (BEC), where attackers pose as trusted colleagues or suppliers to redirect payments or extract sensitive data.

That’s where managed email security providers such as Topsec come in.

How Topsec helps businesses stay secure

Topsec is a leading managed email and cybersecurity provider. It helps organisations across Ireland, the UK, and Canada protect their data, especially from email-based threats.

Here’s how Topsec helps mitigate the risk of a data breach:

1. Email filtering and threat detection

Topsec uses advanced filtering to block spam, phishing attempts, and malware before they ever hit an employee’s inbox. By scanning emails in real time for suspicious links, payloads and behavioural patterns, Topsec reduces the risk of human error. Sadly, it’s humans who are the #1 cause of breaches.

2. DMARC, SPF and DKIM implementation

One of the most overlooked risks in email security is domain spoofing. This is where hackers send emails that appear to come from your business. Topsec helps clients implement DMARC, SPF and DKIM protocols to authenticate emails and protect your domain reputation, ensuring that customers, partners and employees aren’t duped by imposters.

3. 24/7 monitoring and support

Bad actors don’t keep office hours. Security isn’t a set-it-and-forget-it function. With Topsec, businesses benefit from round-the-clock monitoring, alerts and expert support.  If something does go wrong, no matter what the time, our clients are not facing it alone.

4. Archiving and compliance

Topsec also provides secure email archiving and data retention policies that help businesses remain compliant with GDPR and other regulatory frameworks. This is essential if you’re handling customer data or operating in regulated sectors.

5. Employee training and awareness

Because the human factor is such a key vulnerability, Topsec supports clients with cybersecurity awareness training. We help teams spot red flags and avoid risky behaviours. A well-informed team is your first line of defence.

The broader risks for businesses

While 23andMe is an extreme example, it highlights risks relevant to all businesses.

Every company today is, in some form, a data company. Whether it’s managing customer payments, storing employee records or handling client communications, data is at the heart of it all.

Here’s what’s at stake:

  • Client relationships: A breach can derail years of trust-building in seconds.
  • Reputational harm: News of a breach spreads fast,especially if customers or journalists catch wind of lax data protections.
  • Operational disruption: Post-breach investigations, lawsuits and crisis management eat up time and resources.
  • Competitive vulnerability: Sensitive internal data, including pricing models, strategic plans and R&D,can be stolen and sold to competitors.

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What consumers can do

If you’ve ever signed up for a DNA test, online account, or cloud service, your data is already out there in some form. But you can still take steps to protect yourself:

  • Delete old accounts.
  • Use strong, unique passwords and two-factor authentication.
  • Opt out of data sharing where possible.
  • Advocate for stronger privacy laws.

 

For 23andMe customers, experts advise deleting your data, revoking research permissions and requesting genetic sample destruction. Even then, some data may be retained for legal compliance.

What businesses must learn

If you run a business, the lessons from 23andMe are stark:

  • Privacy by design isn’t optional.
  • Email security must be airtight.
  • Transparency builds trust.
  • You need a breach response plan.
  • You need partners like Topsec who live and breathe cybersecurity.

Final thoughts

The 23andMe collapse is a dramatic cautionary tale. That said, most breaches don’t make international headlines. They happen quietly, through an errant click or a phished email.

The status quo of the past no longer applies. Security is not just an IT issue; it’s a business-critical priority that everyone in the organisation is responsible for. Whether you’re handling genetic data or garden-variety invoices, your defenses need to be strong, proactive and ongoing.

Partnering with experts like Topsec can help keep your inbox, reputation and organisation secure. Contact us today to see how we can help.

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