What happened
Shares of Zoom Video Communications (NASDAQ: ZM) have fallen today, down by 6% as of noon EST, amid growing concerns around privacy and security on the platform. CEO Eric Yuan penned a blog post to address the mounting criticism.
So what
Usage of Zoom's video-calling platform has skyrocketed amid the COVID-19 pandemic, with Yuan noting that Zoom reached 200 million daily meeting participants in March (including both free and paid users). With that soaring usage, malicious actors have been increasingly hijacking video conferences in what is now being referred to as "Zoombombing." Elon Musk's rocket company, SpaceX, has banned Zoom for internal meetings, according to Reuters.
Image source: Zoom Video.
"We have strived to provide you with uninterrupted service and the same user-friendly experience that has made Zoom the video-conferencing platform of choice for enterprises around the world, while also ensuring platform safety, privacy, and security," Yuan wrote. "However, we recognize that we have fallen short of the community's – and our own – privacy and security expectations."
Now what
The chief executive outlined steps that the tech company is taking to improve privacy and security. Zoom is immediately freezing all feature releases in order to allow its engineering teams to focus on existing issues, and conducting a comprehensive review to better understand all security problems associated with "new consumer use cases."
Zoom will also enhance its current bug bounty program and prepare a transparency report. Yuan will begin hosting weekly webinars focused specifically on privacy and security updates.
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Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Zoom Video Communications and recommends the following options: short May 2020 $120 calls on Zoom Video Communications. The Motley Fool has a disclosure policy.
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