Neon App Hits #2 on App Store but Faces Shutdown Over Security Issues

Neon App Hits #2 on App Store but Faces Shutdown Over Security Issues

Recently, a new app called Neon surged in popularity, promising users a unique way to generate income by recording phone calls. However, the app quickly faced a setback after a security flaw reportedly compromised user data, leading to its removal from online stores.

Alex Kiam, the founder of Neon, confirmed via email to Gizmodo that the application’s servers are currently down. The team is working diligently to fix the vulnerability and perform a comprehensive security audit to prevent future issues.

Initially launched just a week ago, Neon climbed to the second position in the iPhone’s top free app chart before being taken offline. The app offers users the opportunity to earn money by recording phone conversations, selling those recordings, and the data they generate to AI companies for training their models and enhancing voice recognition technologies.

“Companies collect and sell your data every day. We think you deserve a cut,” the company’s website boldly states.

The troubles began on Thursday when a TechCrunch investigation revealed a significant flaw that potentially exposed sensitive data of Neon users, including their phone numbers, call recordings, and transcripts.

Using a network-traffic analysis tool, TechCrunch discovered that while the app’s interface displayed a list of recent calls and earnings, deeper access revealed far more. Investigators could extract entire call transcripts and access public links to audio recordings from others.

This lack of protection extended to metadata from other users, disclosing both participants’ phone numbers, call duration, and earnings. Following the revelation, Kiam stated that the servers were shut down immediately in response to TechCrunch’s alert.

In an email sent to users, Neon assured them that service will resume shortly, emphasizing that user data privacy is their top priority: “Your data privacy is our number one priority, and we want to make sure it is fully secure even during this period of rapid growth. Because of this, we are temporarily taking the app down to add extra layers of security.”

How Neon Operates

To start using Neon, users register with their phone number and give permission to record calls made through the app. Every time a call is initiated or received using Neon, it automatically captures both sides of the conversation when both parties utilize the app, or just the Neon user if they are calling someone who does not use it.

The recordings, alongside any pertinent data, are designed to be anonymized—removing any identifiable information—before being sold to authorized AI partners. Users can earn $0.30 (approximately €0.28) per minute for calls with another Neon user or $0.15 (around €0.14) for calls to non-users, with a maximum payout of $30 (about €28) per day.

How does Neon ensure user privacy while generating revenue?

Neon’s approach involves stripping identifying information from recordings. However, the recent security breach raises valid concerns about data protection practices and safeguarding user privacy effectively.

Is using a call recording app legal in my country?

The legality of call recording apps varies by region. Users should be aware of local laws regarding consent for recording conversations, as some jurisdictions require that all parties consent to being recorded.

What are some potential risks of using a call recording app like Neon?

Alongside privacy concerns, risks can include data theft, misuse of recordings, and inadvertent violations of local laws if consent requirements are not followed.

Can I trust Neon with my personal data?

While the company claims to prioritize data privacy, the recent security incident raises questions about their ability to protect user information effectively. Prospective users should weigh these concerns before sharing personal data.

In conclusion, while Neon offered an innovative way to monetize data through call recording, recent security issues highlight the need for robust data protection measures in the app industry. If you’re interested in related topics or want to stay updated on tech trends, feel free to explore more on Moyens I/O.