Zoom sued for overstating, not disclosing privacy, security flaws
uk.reuters.com
uk.reuters.com
However, Zoom's biggest advantage is also its biggest risk, if they want to be part of the communication infrastructure of any business/government/university/etc in western countries, especially after so many security incidents that happened in the past years.
I’d guess the one opening you saw was coming out of a US manager’s budget, and the manager wanted some physical presence in China to help work with teams that are based there.
It’s not surprising that they wouldn’t target China-based positions in fluent Chinese language offices at their US based English language site.
Also, I’ve been using Zoom at work for years. They’re more popular with younger firms (“anything but Cisco”, maybe?).
This isn't perfect, but it makes subversion (1) more difficult, (2) probably more targeted (see eg Saudi Arabia using Saudi nationals employed by Twitter to steal identities of critics on Twitter), (3) more likely to be discovered.
My company's security model doesn't include the Chinese government / national security / military, but it could include the Chinese government giving our sales leads (which are evident if you can see our Zoom calls) to a domestic competitor. Broad exfiltration of data like that is much much harder if the engineering core is in the US or EU.
The decoupling has begun. Sentiment in the US toward China has never been as negative as it is now, from both sides of the aisle. I wouldn’t be surprised if we even see sanctions against China after the dust settles on this COVID fiasco.
cat '$COMPANY/zoom-chat.log' | grep '$TRADE_SECRET' | local_industry_boost.bash
inb4 the whataboutism: yes, the US Government has (and might continue to) participated in state sponsored industrial espionage. But if I'm an American company, I'm not going to care about that.I've worked for at least one company that outright refused to do business in China or with certain companies that had oversized presence in mainland China because of experiences with this kind of problem. I know of some engineers that were arrested upon entry to the USA because they stole company IP and founded a company in China that used it. I know of another company that had network hardware compromised by an employee over there and was used to attempt to penetrate US networks (and if you wanna get spooked, they weren't alerted by their stateside infosec team, but federal authorities). I don't know why people treat me like a conspiracy theorist for bringing this up about Zoom routing data through China and using less-than-best-practice security.
In another sense such as starting a war to deflect from problems at home, theres one champ and that is our democratic country.
Either one doesn’t mean the other is doing something legitimate and is waranted shielding from criticism
Those reasons might be something you object with, or even downright stupid in hindsight. But only in Hollywood is it ever a smoke screen for domestic issues.
Humanity needs to be great together.
Together we stand, divided we fall (said the poet).
*I don't vote in the USA so I don't care who they/you elect. If it would be Clinton or Bush (Sr/Jr) or Obama saying "screw the world we should care only about ourselves" I would be equally judgemental (you should hear me discuss politics with Russians (they can't see why their dictator is bad for them) (and now I will get downvoted by both Americans AND Russians :)
And while not literally a war, what purpose do you think the bellicose suppression of the fact of Taiwanese independence both domestically and abroad serves?
Some people seem so obsessed with the country they live in, they can't see the rest of the world properly. An over focus on domestic politics distorts everything with parochialism.
The United States government can and is often held accountable for its actions. This concept does not exist in China.
"Zoom, a Silicon Valley-based company, appears to own three companies in China through which at least 700 employees are paid to develop Zoom’s software. This arrangement is ostensibly an effort at labor arbitrage: Zoom can avoid paying US wages while selling to US customers, thus increasing their profit margin. However, this arrangement may make Zoom responsive to pressure from Chinese authorities."
https://citizenlab.ca/2020/04/move-fast-roll-your-own-crypto...
I don't think the funneling stops at product requirements.
Btw, I might be wrong but CCP banned Zoom about half a year ago.
Also, it's awfully hard to argue losing shareholder value when the stock has still more than doubled in the end -- Zoom can easily make the plausible-enough case that it made the right tradeoffs in the end for shareholder value that allowed it to scale. (I'm not saying that's true, just that it's plausible.)
Could it be fined by the SEC for misstating key details in their public filing? Maybe, although these are tiny details. But a class-action suit by shareholders? This feels like a stunt to me. Also, since a suit by shareholders could depress the stock price further, this feels like a short-seller trying to profit, no?
Two general steps to a securities suit.
First, show the company defrauded investors. That can be as simple as omitting or mis-stating material information. (Zoom publicly claimed to use certain encryption standards that it didn't.) So the battle, here, will be around materiality. Critically, this step does not typically require proving damages.
Once materiality is met, the second step is showing damages. At this point, the change in (and attribution of) stock prices comes into play.
Once fraud is shown, the company is in a bad place. Even if a particular investor faced no discernible loss, everyone who bought at higher prices will now sue. It also invites state and federal investigators to start pursuing management and senior staff.
> this feels like a short-seller trying to profit, no?
No. You have to disclose your positions when entering into a shareholder lawsuit. Shareholder lawsuits are comically common. And there is limited precedent for short sellers doing this.
Disclaimer: I am not a lawyer. This is not legal advice. Don't buy or sell securities based on my internet comments.
Now they added this waiting room, there is no sound notification to let you know that people are waiting. Doing daily standup become a sufference. It's crazy how quickly they lost us as users with literally two badly implemented features.
Happy to hear if any of you also had the same struggle and if there is a good alternative.
We were using Slack's built-in conferencing at first, but aside from the quality being generally bad, there was a 15 person limit, and we're ~ 17 people.
I didn't want us to use Zoom with everything that's going on, so I suggested Google Meet. We tried it, and it worked, but not well—people's voices would frequently break up and become hard to hear.
And so we tried Zoom this past Monday.
It was incredible. I could actually hear and see everyone. I'm not happy about all their issues, but damn their product is just really good.
Maybe it's locality to the servers, or just packet loss heavy internet in your neck of the woods. Either way, I get it.
[1] https://www.bloomberg.com/opinion/articles/2019-06-26/everyt...
> “We allege that Tapplock promised that its Internet-connected locks were secure, but in fact the company failed to even test if that claim was true,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “Tech companies should remember the basics—when you promise security, you need to deliver security.”[1]
Armed with clear and indisputable evidence of Tapplock's blatant lies, the bulldog enforcement lawyers at the FTC took the opportunity to make an example out of the company. After 18 months of hard-fought negotiations the FTC announced a settlement agreement[2] whereby the Commission agreed to resolve the matter in exchange for Tapplock's pinky promise to not get caught doing that again. Per the arduous terms of the settlement, Tapplock neither admits nor denies any of the FTC's allegations.
So when a company promises their users security that company better deliver security. Or else... absolutely fuckall will happen.
[1]https://www.ftc.gov/news-events/press-releases/2020/04/canad...
[2]https://www.ftc.gov/system/files/documents/cases/192_3011_ta...
However, they do need to pretend for the court that this more than just a lawyer led money grab and that they actually represent the interest of a plaintiff. Enters Michael Drieu. If you read the complaint [1] you'll see Michael Drieu claim damages of ... $300. He's basically enabling a shakedown out of either malice or stupidity but not greed.
So no, it is not as if the shareholders of Zoom were up in arms against the company, this is just ambulance chasing with a puppet plaintiff.
https://www.scribd.com/embeds/455562311/content?start_page=1...
Those are pretty strong statements for an 11 minute old account.
Dang, you can go ahead and scold me for insinuations of shilling. I just can't help myself.
if you hold an index fund which holds zoom, you are not a shareholder, the fund managers are.
It probably doesn’t matter much for a small company like Zoom, but I imagine it would for MFAANG and friends.
It's a get out of jail free card they'd be dumb not to have included.
Chinese servers, operating in China legally, will usually have this issue.
It's serious yes, but I'm confused if it only applied to users in China?
I'm more concerned about the technical issues TBH - I assume most software sanctioned in China had to turn over keys.
Source for this? That would make any https site in china illegal.
https://www.freshfields.com/en-us/our-thinking/campaigns/dig...
tl;dr: encryption is not completely illegal, but it sounds like it's pretty tightly controlled.
They're not comically evil, they just have certain incentives.
Key escrow meets those goals.
I am not a lawyer nor a cryptography expert who can advise whether licenses are granted easily or whether they are revoked if you fall out of favour.
And, like, why? Sure, if no one ever caught them, e2e could be a reason to choose Zoom—but it's like lying on a resumé. Which, I guess is also a thing that happens sometimes, but it's generally understood to be a bad idea.
If zoom was truly trying to market themselves as e2e, why is this only buried in one document rather than shouted from the hills?
They updated their documents since, but last week they had documentation up that said they were HIPAA compliant due to end to end encryption.
I develop electronics and firmware for medical devices, I have (almost) nothing to do with regulations compliance (except to the extent that I'm working on something where there is an intersection, like storage of patient data). But anyway, not a day goes by that I don't hear someone ask, "Is that HIPAA compliant?"
So yeah. Companies that have used Zoom based on that claim are probably going to extract some blood out of Zoom.
https://help.webex.com/en-us/WBX44739/What-Does-End-to-End-E...
Shame on us.
Without NAT from home gateways (like consumer routers) preventing inbound connections from the internet, security would be far more of a nightmare than it is today. Requiring that people manually forward specific ports is the best way to handle it. We would be seeing news about Blaster-like worms pretty much every week of the past 20 years, otherwise.
Also, even if it were a good idea, this still wouldn't solve the problem at all. The NAT-traversing capability of Zoom and other products is like 0.01% of the value they provide. You still need good software.
Zoom "just works". My in-laws joined a Zoom conference without help. There is no way they would have figured out Hangouts or Teams.
This would be a great time for some proper European alternatives.
The worst case of this was when a manager came and told me we had just landed a big customer and my response was, 'Oh, fuck me'.
When your product isn't built for scale, you can sell the hell out of it to small and medium sized customers, or sit back and let organic growth bring you people by word of mouth, and they will all be happy. Invite yourself to the Big Show before your systems are ready and you're gonna have a bad time.
In this case, there is probably nothing Zoom could have done to avoid this level of scrutiny at this time. Handle that scrutiny better? Sure. But it was going to happen either way.
Note: I love the Chinese people, and my Chinese colleagues. I do NOT like the oppressive, and frankly, evil and callous crimes committed by the Chinese government. Downvotes or upvote the comment as you will, won't change their crimes or my opinion..
To have any assurance that a video conferencing system is actually secure e2e you would have to have access to the verified source code of the client programs and verify the identity of each and every participant. That is likely impractical so I think it is safe to say that you should not use any video conference system provided by others to discuss secret things. If you absolutely must do so then you can set up a server under your physical control and then would not have to bother with e2ee at all.
And of course it’s fairly extreme to claim you should not use any video conference system for any sensitive discussions; security is not black and white, and each situation deserves an appropriate level of security; it needs to be balanced with convenience. There are a lot of situations where I would prefer “mostly” secure communication, rather than no communication at all.
We are not talking about "mostly" here for the video conference case. We are talking about a situation where most providers have access to the data of their users without very much work. If you are actually willing to confirm the identity of your correspondent using verified binaries you can get end to end protected communications ... if someone claims that they have something easier then they are lying. You can't beat the law of logic. The fact that anyone is even suggesting that Zoom could of been e2ee in any way that mattered is kind of depressing. I think we have some education to do.
Security audits are pointless unless you can confirm that the software that was audited is the software actually running on your device.
Because my personal gripes with Zoom are mostly about its quality as a software product, which I find to be abysmal for my use cases.
What issues have come up for you?
I think I found your problem. While Linux is big here on HN, all Linux users probably represent .001% of their paying customers.
In other words, it makes no business sense for them to do anything to retain you.
Right now, I got an email from Zoom, not showing any relation to my employer or mentioning its name: "congratulations for signup, use your account now". Ok. Password reset yields an usable basic account. Seems like somehow Zoom created a personal account for me with my work email. As I didn't get the activation email I got on my private spam-account, I assume somehow they got/requested all the employees email-adresses and automatically created private accounts, not related to the actual business acc..
What the actual f* is that?!? And yeah, I think conceptually this is the same behavior as shown by the ad/malware/spam campaigns ca. 2003. I wonder what had happened if I had just typed a password when signing in with my account... Maybe they just grab the passwords of the illiterate users and check them by trying to login with the university website? (that's sooo userfriendly!)
It might be a messup from someone but it's definitely strange and I just didn't sign up there, yet got spam and had a working basic account...
Could also have been created with SCIM and you're in a particular SCIM group that other folks are not in.
1) Buy volatile stock with recent IPO
2) Sue them for their volatility
3) ?????
https://citizenlab.ca/2020/04/move-fast-roll-your-own-crypto...
Unfortunately, crypto libraries have a history of having a terrible UI and defaulting to ECB. Years ago I ran into this with pycrypto. I worked on a team that joked about how important it was not to do ECB and it turns out they had done ECB. https://www.dlitz.net/software/pycrypto/api/current/Crypto.C...
I.e. they put in their IPO prospectus that there might be a negative impact on their reputation from them having Chinese R&D, so they have a defense against that. They didn't put "We have misleading marketing materials that might become subject to widespread public attention" in there I think.
Public markets bid up a stock to an insane valuation in a matter of weeks and then the price comes down (due to technicals, fundamentals, whatever) and you have shareholders trying to weasel out of their gambling losses by suing company.
Let a customer who was actually harmed by this sue. Much more compelling to me.
If they weren't making shit up, stocks go up, stocks go down, but the gamblers wouldn't have any grounds to sue.
Actually, Zoom is accused of misbehaving and biting the feeding hand. And yes, this shouldn't have happened.