Apr 2, 2020 - Technology

Zoom's tarnished moment of glory

Zoom founder Eric Yuan in New York on the day of the firm's 2019 IPO. Photo: Kena Betancur/Getty Images

This is clearly Zoom's moment in the spotlight, as the public has embraced the videoconferencing provider's service during the coronavirus lockdown. However, security woes, privacy controversies, and trolling incidents have marred the company's star turn.

The big picture: When Zoom usage soared as Americans started working and studying from home, some worried whether it could handle the load. It did, but other problems cropped up as millions of consumers started using what had been an unsung piece of business software.

Driving the news: Over the past week, researchers have reported a variety of security flaws in Zoom.

Yes, but: Most software is insecure to some degree, and those flaws aren't detected unless usage becomes widespread enough to turn the program into a valuable target. Zoom is now in that unenviable position.

Previously, Zoom came under fire for the way its iOS app shared data with Facebook.

Meanwhile, users of Zoom holding classes and public meetings have found themselves targeted by "zoombombing" hecklers, who are interrupting conferences to introduce hate speech or porn.

Flashback: Last summer, Zoom incurred Apple's wrath because of the way its app installed a secret web server on Macs to save its users a click in the launch process.

Our thought bubble: The same design choices and default settings that made Zoom so easy to install and use are the ones that make it vulnerable. The level of trust that users within a large company assume as they work together breaks down among more heterogeneous groups in public environments.

The bottom line: Zoom's stock has soared recently thanks to its surge in usage, but that ride could turn bumpy.

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House Democrats pull FISA reauthorization bill

Speaker Nancy Pelosi. Photo: Saul Loeb/AFP via Getty Images

House Democrats pulled legislation Thursday that would have renewed expired domestic surveillance laws and strengthened transparency and privacy protections amid broad opposition from President Trump, House GOP leadership and progressive Democrats.

Why it matters: The failure to reauthorize the Foreign Intelligence Surveillance Act (FISA) comes as Trump continues to attack the intelligence community, which he claims abused the law to surveil his 2016 campaign and Trump administration officials.

U.S. GDP drop revised lower to 5% in the first quarter

Data: Bureau of Economic Analysis; Chart: Axios Visuals

The U.S. economy shrunk by an annualized 5% in the first quarter — worse than the initially estimated 4.8% contraction — according to revised figures released by the government on Thursday.

Why it matters: It's the worst quarterly decline since 2008 and shows a huge hit as the economy was just beginning to shut down because of the coronavirus. Economists are bracing for the second quarter's figures to be the worst ever — with some projecting an annualized decline of around 40%.

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