Neon vows to return after data breach — payouts paused

Neon, the app that pays users for recordings of their phone calls and sells them to AI companies, says it will return after a security breach exposed users’ recordings, transcripts and phone numbers. Founder Alex Kiam apologized to users and said the app will be back soon once extra security layers are added.

What happened

• TechCrunch reported a security flaw that allowed users to access other people’s call recordings, transcripts and metadata, prompting Neon to take its service offline.
• Neon’s founder Alex Kiam emailed users saying earnings are safe: “Your earnings have not disappeared — when we’re back online, we’ll pay you everything you’ve earned, plus a little bonus to thank you for your patience!”

Payouts & how Neon records calls

• Neon pays users for recorded calls: up to $30 per day; 30¢/minute for calls with other Neon users, 15¢/minute for calls with non-Neon users; $30 for successful referrals.
• The company says it records only the user’s side when they place calls via the app; if both parties are Neon users (and the call starts in-app), it can record both sides. Neon claims filters remove personal data like names and phone numbers.

Privacy, legality and concerns

• Privacy experts warn against using Neon because of risks including potential violations of two-party consent laws in some jurisdictions.
• While the app is offline, users cannot cash out earnings. Neon promises to pay users what they’ve earned once it reopens.

Sources & further reading

• TechCrunch — Neon goes dark after exposing users’ phone numbers, recordings and transcripts
• Business Insider — Neon offline amid security audit after data exposure
• Malwarebytes — Neon pays users to record calls, sells data for AI training
• 9to5Mac — Neon to return after massive security breach

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If you want, I can update the post when Neon announces a relaunch or a new privacy policy.