When a big story breaks—like the recent bankruptcy filing of 23andMe, the popular DNA testing company—most people see it as a headline. Scammers see it as an opportunity. The company’s financial troubles raise real concerns about what happens to the sensitive personal and genetic data of millions of users. But beyond the potential sale of data, the real and immediate threat is how fraudsters use news stories like this to launch scams.
What Scammers Do With Headlines Like This
Scammers thrive on fear, urgency, and confusion. When companies go through bankruptcy, suffer a data breach, or even when natural disasters strike, scammers jump into action. They pose as trusted organizations and send convincing messages designed to manipulate you.
Here’s what that looks like:
- Phishing Emails with “Account Recovery” Claims
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- “Your data has been sold to a third party. Click here to recover your account.”
- “Verify your identity to prevent your genetic data from being compromised.”
Reality: The links lead to fake websites designed to steal your login credentials or install malware.
2. Text Messages With Urgent Warnings
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- “Your DNA profile is at risk. Tap to secure your account.”
- “A new company now owns your genetic records. Confirm your consent.”
Reality: These texts use scare tactics to get you to click malicious links.
3. Phone Calls Pretending to Be From Customer Support
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- “We need to verify your identity due to the recent company transition.”
- “There’s suspicious activity on your account—we need to confirm your genetic profile information.”
Reality: They’re using details they’ve gathered to social engineer you—meaning, they try to trick you into revealing personal info that they can use to commit fraud.
How Scammers Can Use DNA Data for Social Engineering
If DNA and genetic data were to fall into the wrong hands, it could open the door to highly targeted and dangerous social engineering scams. Here’s how fraudsters could misuse that information:
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- Targeting based on health risks: Sending phony treatment offers or clinical trial invitations.
- Family-based scams: Impersonating relatives or creating fake family emergencies.
- Inheritance and trust scams: Falsely claiming genetic proof for estate or will settlements.
- Fake identity confirmation: Requesting personal info under the guise of medical, insurance, or ancestry verification.
The Broader Trend: Scams After Any Crisis or News Event
This kind of scam doesn’t just happen after bankruptcies. It happens after:
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- Data breaches
- Natural disasters (e.g., hurricanes, fires)
- Public health crises (e.g., pandemic-related stimulus checks)
- Large-scale layoffs or corporate restructuring
In all cases, scammers impersonate legitimate organizations like banks, government agencies, tech companies, or health services.
Scammers Exploit Government Layoffs and Service Interruptions
When major government agencies announce layoffs or funding issues, scammers see a golden opportunity. These departments provide services that millions of people depend on - and fraudsters know how to use public concern and confusion to their advantage.
Here are just some ways scammers may take advantage of recent layoffs or disruptions within agencies:
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- Fake Benefits Disruption Notices: “Due to agency layoffs, your Social Security/VA benefits may be paused. Verify your info to avoid delay.”
- Student Loan Forgiveness Phishing: “Dept. of Education will no longer service loans. Confirm your ID to secure your forgiveness status.”
- Tax Refund Scams: “IRS is experiencing delays—log in here to make sure your refund is processed before shutdown.”
- Veterans Health Services Fraud: “VA access is temporarily paused. Click here to re-register for appointments.”
- Environmental Warnings: “EPA response to recent contamination may be impacted. Complete this form to request assistance.”
- Disaster Relief Cons: “HUD is reorganizing. Confirm your eligibility for rental support or FEMA assistance.”
- Food Assistance Fraud: “USDA SNAP benefits update required. Tap the link to avoid cancellation.”
- Fake Medical or FDA Recalls: “HHS recall of your prescription product may not be processed in time. Call now to verify prescription safety.”
- Fake Internal Communications (for gov workers): “Due to restructuring, your government login must be re-verified. Click here.”
Any time there's a disruption in government services, fraudsters will jump at the chance to create convincing phishing emails, robocalls, and text messages to trick people into revealing personal, financial, or medical information.
How to Protect Yourself
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- Never click on links or call back numbers in unsolicited emails or texts.
- Visit the official .gov websites directly to check for service updates.
- Be cautious of messages referencing layoffs, shutdowns, or benefit suspensions.
- Go directly to the company’s website to verify if there’s an actual issue.
- Beware of urgent and emotional language like “Act now!” or “Your account is at risk!”
- Question any request for sensitive info like Social Security numbers, account logins, or health data.
- Report suspicious messages to your financial institution or to the FTC.
Stay Aware. Stay Safe.
From bankruptcies to layoffs to service outages, scammers are watching the news—and weaponizing it against you. The 23andMe story is just one example of how personal data and public uncertainty fuel fraud campaigns.
Whenever you see major headlines, think critically, verify independently, and talk with others to spread awareness. The more informed we are, the harder it is for scammers to succeed.
