A new call-recording app, Neon Mobile, is rapidly gaining popularity for paying users to record their phone conversations, which it then sells to AI companies. The app is currently the No. 2 social app on Apple’s U.S. App Store and offers users the chance to earn hundreds or even thousands of dollars annually for their voice data.
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Neon’s website advertises payments of 30¢ per minute for calls with other Neon users and a maximum of $30 per day for calls to non-users. Users can also earn through referrals. The app skyrocketed from No. 476 to No. 10 in the Social Networking category within days and reached No. 2 in the top free charts on Wednesday.
According to its terms of service, Neon can capture both inbound and outbound calls, though it claims only to record one side of the conversation unless the call is between two Neon users. The data is sold to AI firms “for the purpose of developing, training, testing, and improving machine learning models, artificial intelligence tools and systems, and related technologies.”
Experts warn the app raises serious privacy risks. While Neon says personal identifiers are removed, there is no guarantee that AI companies or third-party partners will handle the data responsibly. Cybersecurity attorney Peter Jackson noted that voice data could be exploited to create AI-generated calls or impersonate users for fraud.
The app also grants Neon a broad license over submitted recordings, allowing it to sell, reproduce, host, transfer, and distribute user audio worldwide, with few restrictions. Beta features come with no warranty, leaving users vulnerable to potential bugs or misuse.
Legally, recording one side of a conversation may bypass wiretap laws in some U.S. states, but experts like Jennifer Daniels of Blank Rome caution that the “one-sided transcript” approach may conceal full recording of calls.
Neon’s founder, identified only as Alex Kiam, operates the app from a New York apartment. While Kiam recently raised funding from Upfront Ventures, the company has not publicly clarified its AI partners or how the data is anonymized and protected.
Tech analysts suggest the app’s popularity highlights a growing willingness among users to trade privacy for small financial incentives, reflecting broader societal desensitization to data privacy in the AI era.
Jackson emphasized the broader implications: “Some of these productivity tools make jobs easier but do so at the expense of privacy not just your own, but of those you interact with daily.”
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