Neon app that sold recorded phone calls for AI training is now offline after a security flaw exposed all of its users' data

News
By last updated

You definitely don't want to willingly give up your personal data for a few bucks

Woman holding iphone
(Image credit: Future)

Editor's note: After yesterday's story was published, TechCrunch received additional information about the Neon app that indicated there had been a security flaw that allowed any user to access the phone numbers, call recordings, and transcripts of any other Neon user. Alex Kiam, the founder of Neon app, took down the app's servers and notified users about a pause in service after being notified of the issue.

The original story follows below.

As reported by TechCrunch, the app refers to itself as a “moneymaking tool” and offers to pay users for access to their audio conversations, which it then turns around and sells to AI companies.

The fee is 30 cents a minute for phone calls to other Neon users, or up to $30 a day for calls to non-Neon users, and the app pays for referrals as well. It captures inbound and outbound calls on the best iPhones and best Android phones, but only records your side of the call if it’s connected to another Neon user. This collected data is then sold to AI companies, according to Neon, “for the purpose of developing, training, testing, and improving machine learning models, artificial intelligence tools and systems, and related technologies.”

Images of the Neon app screenshots on a smartphone

(Image credit: Neon app)

Neon says that it removes personal data like names, emails and phone numbers before this data gets handed over but doesn’t specify how the AI companies it sells that data to will be using it. That’s troubling in an era of deepfakes and phishing or vishing, and especially so when Neon’s vague and inclusive license statement give it so much access to further potential usage. Those terms include beta features that have no warranty, and the data set is a gold mine for a potential breach.

In TechCrunch’s reporting, they state that while testing the app it did not provide proper notification that the user was even being recorded during the call – and the recipient wasn't alerted about possible recording either. Given the popularity of the app, many users seem unconcerned about selling out their privacy. And given the amount of data breaches that occur over the course of a year, many people may figure that data privacy is a lost cause already. However, there’s a stark difference between having your car get broken into and leaving your keys in it.

How AI training puts you and your data at risk

AI on data server

(Image credit: Shutterstock)

Just like with a data leak, willingly giving away huge chunks of personal information can leave you open to serious consequences. For instance, once your information is out of your control after you hand it over to someone else, it can be sold, resold, exposed in a breach, leaked to the dark web and more.

AI models can reveal sensitive information, which may lead to potential issues with employment, lending or acquiring housing. Additionally, there are few safeguards or standards that are consistent with AI companies, and data breaches are becoming more and more common. Privacy issues could occur too and if a company is sold or goes out of business ,there could be legal complications.

Your data is like currency, which is why I recommend going to great lengths to protect it by investing in one of the best identity theft protection services and by installing one of the best antivirus software suites on all of your devices. You also want to make sure that you don't fall for phishing attacks and don't click on unexpected links or fall for scams. Why willingly hand over this information for such a cheap price?

The Neon Mobile app is climbing the rankings now but we'll see if it can maintain a top spot in Apple's App Store for long. Just like with the other security stories I cover, if something seems too good to be true, it probably is and that's the feeling I get with this new app. However, I could be wrong and Neon Mobile could be the first of many apps that pay your for your data for AI training. Only time will tell but based on what I've see and learned so far, I'd recommend avoiding it for now.

Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button!

More from Tom's Guide

Amber Bouman
Amber Bouman
Senior Editor Security

Amber Bouman is the senior security editor at Tom's Guide where she writes about antivirus software, home security, identity theft and more. She has long had an interest in personal security, both online and off, and also has an appreciation for martial arts and edged weapons. With over two decades of experience working in tech journalism, Amber has written for a number of publications including PC World, Maximum PC, Tech Hive, and Engadget covering everything from smartphones to smart breast pumps. 

You must confirm your public display name before commenting

Please logout and then login again, you will then be prompted to enter your display name.