Viral app ‘Neon’ that paid users for their phonecalls goes offline after exposing user data

Neon Mobile, a viral app that let users sell their phone call recordings to AI companies, has been taken offline after a major security flaw exposed users’ phone numbers, call recordings, and transcripts.

The app, which promised payouts of up to $30 a day by giving AI firms access to conversations, quickly climbed the U.S. App Store charts last week. Data from app intelligence provider Appfigures showed it was downloaded 75,000 times in a single day and reached the top five free iPhone apps.

But TechCrunch revealed that the app’s servers were not preventing logged-in users from accessing other people’s data. This included call metadata, phone numbers, transcripts, and public web links to raw audio files.

App pulled after security lapse

TechCrunch verified the flaw by creating a test account, analyzing network traffic, and discovering that Neon servers could provide transcripts and recordings of unrelated users’ calls. In some cases, the system revealed both numbers involved in a call, the length of the conversation, and how much money the user earned from it.

The outlet reported that some users appeared to be making lengthy real-world calls through the app in order to generate revenue, raising additional privacy and legal concerns.

Neon Mobile

Founder Alex Kiam confirmed that he had taken the servers offline and emailed users about the pause. The message, which promised “extra layers of security,” did not acknowledge the security breach that exposed sensitive data.

Legal and privacy concerns

Neon had already attracted scrutiny for how it handled recordings. The app’s terms of service stated it captured inbound and outbound calls, saving both sides only if all participants used Neon. Privacy experts warned that the system might skirt wiretap laws, while cybersecurity attorneys questioned how anonymized the recordings really were.

The security incident adds to a string of high-profile data lapses on mobile platforms. Other popular apps, including dating services like Bumble and Hinge, were found in 2024 to have exposed user locations. Apple and Google have not yet commented on whether Neon violated developer guidelines.

It remains unclear when or if the app will return. TechCrunch said it reached out to firms Kiam claimed were investors in Neon, but they did not respond to requests for comment.

AI-focused apps have taken over the App Store ever since the growth of OpenAI’s ChatGPT and other companies’ chatbots like Perplexity, Anthropic’s Claude, and more.