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Zoom Is Losing Its Connection With Business - Can It Fix It?

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It's a verb and a lifeline for millions amid the coronavirus pandemic and ongoing global shutdown of life as most know it. Yet Zoom Video Communications  (ZM)  continues to grapple with how to keep businesses - and people - both comfortable and safe from hackers. 

At least some big companies are giving it a sober second thought or giving it up outright, despite Zoom proactively working to address major security flaws and the unnerving issue of “Zoombombing.”

Large companies including the likes of Daimler AG, Ericsson (ERIC) - Get Report, NXP Semiconductors (NXPI) - Get Report and Bank of America (BAC) - Get Report are among a wave of companies forbidding or warning employees against using the online web conferencing app because of concerns about its security.

They join corporations like Tesla (TSLA) - Get Report and government agencies including the New York City Department of Education that are banning the app’s use, or calling for authorization and specific security protocols to be enacted first before their employees use it. 

India has deemed Zoom an unsafe platform and initiated a public contest to develop a secure homegrown video-chat alternative, according to Bloomberg.

The action comes as Zoom has grown into a proverbial lifeline for millions who have logged on to communicate face to face through the coronavirus pandemic and global lockdowns. The company said it passed the milestone of 300 million daily meeting participants this week, and its share price remains close to record highs. 

However, the surge in users to its platform has exposed significant security flaws – not only in how people can virtually step in to others’ online meetings, a phenomenon that has earned the moniker “Zoombombing,” but also gain access to recordings of meetings and even individual computer and network systems.

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