Zoom Delivers More Security With Software Update

Zoom Video Communications (NASDAQ: ZM), the popular video conferencing app to stay connected during the COVID-19 pandemic, has beefed up its security as part of its 90-day security enhancement plan. That's welcome news to tech stock investors who are fearful Zoom is a flash-in-the-pan story, ultimately fizzling out as consumers and corporate America turn to more secure offerings. Critics have argued that the platform isn't sophisticated enough to handle corporate and educational customers, making these new efforts crucial to proving Zoom's ability to securely handle its surge in customers.

IMAGE SOURCE: GETTY IMAGES.

Called Zoom 5.0, the company's latest software update strengthens the service's encryption standard, making it harder for hackers to intercept data. Zoom found itself in hot water last month when news surfaced that it wasn't using end-to-end encryption -- meaning messages are encoded by the sender, decoded only by the recipient, and stored entirely in coded form while in transit between the two. Some data was even being routed through China, even though the call and the participants were based in the U.S.

Source Fool.com