Investor sues Zoom and its officials for hiding its vulnerabilities

American remote video conferencing application has become popular in recent times while leaving behind Skype. The usage of the Zoom application has increased as a number of employees have been working remotely due to the ongoing coronavirus pandemic. The app soon became a target of critics due to its loopholes that came to noticed only after was being used across the globe by many people. Now a shareholder has accused Zoom Video Communications Inc. of hiding its loopholes.

The complaint has been filed at the San Francisco federal Court on April 7, 2020 and has targeted the company as well as the top officials. It has been alleged that the officials and the company managed to conceal the truth about the loopholes in the software encryption and it includes its vulnerability to the hackers with unauthorized revelation of personal data to some of the third parties like Facebook Inc. The suit has been filed by Michael Drieu as a class action and has mentioned about the number of app deficiencies and it started to come to notice in 2019. The last year’s episodes had affected the stock price of Zoom but the shares continue to be up 67 percent in 2020 for the reason that the investors are confident that the teleconferencing company will come out with flying colors amidst the coronavirus pandemic.

A number of big organization on the world have banned the usage of the app as the popularity increased during the pandemic. It was being used for business meetings cabinet meetings and even classroom readings. On April 7, 2020, Taiwan has also banned the official use of the application and has become the first government to take such a measure.

Eric Yuan, the CEO of Zoom apologized for the shortcomings related to privacy and security through a blog post. Some of the cyber security researchers have warned about the vulnerabilities and how the hackers can take advantage of the shortcomings.

Photo Credits: Go tech Daily