The Neon Mobile app, which gained rapid popularity shortly after its launch by offering users payment for recording their phone calls, was taken offline this past Thursday due to a reported security vulnerability. The app briefly outperformed Meta's Threads on the Apple App Store, generating significant buzz in its first week.
CEO Alex Kiam indicated plans to monetize the data collected through the app by selling it to companies for AI model training, although no buyers have been secured as of now. The app proposed to compensate users with 30 cents per minute for calls made between Neon users, and 15 cents per minute for calls involving non-Neon users. Users could potentially earn up to $30 per day.
However, concerns about privacy emerged when TechCrunch reported a security flaw that exposed users' phone numbers, call recordings, and transcripts. Following this revelation, Kiam announced the app would remain offline for a security audit, which may take one to two weeks. The company aims to implement new security measures, including row-level security.
Neon’s operation required users to download the app and verify their phone numbers, with the app specifically recording only one side of the conversation. Kiam emphasized that the app is designed to comply with various state recording laws, which vary in terms of consent requirements.
Despite its initial success, the app's popularity has declined following the security report, dropping in rankings on the App Store. As the demand for AI training data increases, Neon represents a novel approach, yet it also highlights the complexities of data privacy and user consent in the digital age.