Neon, a buzzy app that pays to record your calls for AI training data, goes offline to address a security scandal

A new app that quickly gained traction in the App Store has recently faced significant challenges after a major security vulnerability was uncovered. Neon Mobile, which allows users to earn money by permitting the app to record their phone calls for AI training purposes, was launched just over a week ago and briefly surpassed Meta's Threads in popularity on Apple's platform. However, the excitement was short-lived. On Thursday, a report revealed that a security flaw enabled unauthorized access to users' phone numbers, call recordings, and transcripts. This revelation prompted the app's suspension as CEO Alex Kiam announced that a thorough security audit would be conducted, potentially taking one to two weeks. The concept behind Neon is straightforward: users can earn 30 cents per minute for calls made with other Neon users and half that amount for calls to non-users. In exchange, the app claims to anonymize and sell the data collected during these calls to reputable tech firms. Kiam stated that the company's goal is to offer users a way to profit from their data, contrasting with how phone companies typically handle user information. The reported security vulnerability raised serious privacy concerns, particularly when TechCrunch highlighted that it could expose users' recent calls and provide public links to raw audio files and transcripts. As a response, Kiam assured that Neon would remain offline until the security issues were resolved and that new protective measures would be implemented. Kiam expressed surprise at the app's rapid growth, noting that it exceeded his expectations. With a background in AI training, he aims to ensure that Neon's services remain legally compliant in the various states with differing recording laws. Currently, the startup consists of a small team of four, and despite having only 299 downloads initially, the app surged to approximately 81,000 downloads within days of its launch. As the demand for training data for AI continues to grow, startups like Neon are exploring innovative ways to provide this essential resource. While the future of Neon remains uncertain due to the current situation, the app's rise and subsequent challenges underscore the complexities involved in merging consumer data with AI development.