Technologies

Neon, the Popular Free App That Pays for Call Recordings, Has Been Disabled

Despite a server «pause» and a reported security flaw, Neon remains one of the top-downloaded free apps in the iOS app store.

A new app that promises to pay people for recordings of their phone calls, which are then used to train AI models, has been disabled after a major security flaw was reported.

Neon is still in the top 10 of iOS free app downloads, but after TechCrunch reported Thursday about a security flaw that the news site found in the service, its servers have apparently been made unavailable to users.

The app can still be downloaded, but it’s no longer functioning. It’s unclear whether the service will return or how long it will take.

Emails to Neon Mobile, the company behind the app, have not been returned.

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According to TechCrunch, a flaw in the app allowed people to access calls from other users, transcripts and metadata about calls. The company notified Neon users that it was pausing the service but did not explicitly mention why, TechCrunch said.

Before the app was disabled, a legal expert warned about trouble it might cause, in addition to potential security flaws.

David Hoppe, the founder and managing partner of Gamma Law, which advises clients on thorny technological issues, told CNET that because some states have consent rules on recording phone calls, people using Neon should be very careful or avoid it entirely. Without certainty of its legality, he warned, «do not use this app.»

Cash for calls

Neon is still available (at least for the time being) on iOS and Android. The company records users’ outgoing phone calls and pays them up to $30 a day for regular calls or 30 cents a minute if the call is to another Neon user. Calls to non-Neon users pay 15 cents a minute. The app also offers $30 for referrals.

«You can cash out as soon as you earn your first ten cents,» a Neon app FAQ says, «Once redeemed, payouts are typically processed within three business days, though timing may occasionally be shorter or longer.»

The company promises it only draws from the recording of one side of the phone conversation, the caller’s, which appears to be a way of skirting state laws that prohibit recording phone calls without permission.

While many states only require one person on a call to be aware that a call is being recorded, others, including California, Florida and Maryland, have laws that require all parties on a phone call to consent to recording. It’s unclear how Neon functions with calls to those states. For Neon-to-Neon calls, two-party consent would presumably be implied.

The app doesn’t record regular phone app calls, only those made within the Neon app or received from another person using Neon.

While the iOS version has shot up in popularity — it reached as high as the No. 2 spot this week — the Android version appears to be having some problems, at least according to some of the most recent reviews on the Google Play Store. The Android app only has a 2.4-star rating, and some user comments report network errors when people try to cash out on the Neon app.

Training AI using your data

According to the company’s FAQ, the call data is anonymized and used to train AI voice assistants. «This helps train their systems to understand diverse, real-world speech,» it says.

AI companies need increasing amounts of data to train their models, which may be why Neon is offering the monetary incentive.

«The industry is hungry for real conversations because they capture timing, filler words, interruptions and emotions that synthetic data misses, which improves quality of AI models,» said Zahra Timsah, CEO of i-Gentic AI, which works in AI compliance.

«But that doesn’t give apps a pass on privacy or consent,» Timsah said.

Pushing legal limits

TechCrunch, which was one of the first sites to write about the app, pointed out that sharing voice data can be a security risk, even if a company promises to remove identifying information from the data.

Neon could be pushing its luck, especially across states and countries, when it comes to privacy and IP laws or regulations, depending on how it handles consent and where the data ends up.

«We don’t know if there are sufficient safeguards to exclude the person on the other end of the conversation, but some level of consent would be required, and informing them of it being provided,» said Valence Howden, a data governance expert and advisory fellow at Info-Tech Research Group.

Howden said that even if the data is anonymized, AI might not have a hard time retroactively discovering who is on the line in a Neon conversation.

«AI can infer a lot, correct or otherwise, to fill in gaps in what it receives, and may be able to provide direct links if names or personal information are part of the exchange,» he said.

Can I be liable for call recordings?

Putting aside the requirements the Neon app had to meet in order to be included in Apple’s App Store, it’s reasonable to still have questions about the legality of recording phone calls, especially in states where all parties must consent.

That may be a major reason to avoid Neon, according to Hoppe, the legal expert.

«In the United States, it is not legal to simply record a phone call because an app’s terms of service say you can,» Hoppe said. «So, imagine a user in California records a call with a friend, also in California, without telling them. That user has just violated California’s penal code. They could face criminal charges and, equally scary, be sued civilly by the person they recorded.»

Violations, he said, could result in penalties of thousands of dollars per incident.

Hoppe said Neon’s terms of service won’t protect an app user if they face legal liability over recordings. And it doesn’t help, legally speaking, that the person recording was paid for doing so.

«The user is the one pressing the record button,» Hoppe said. «My strongest recommendation to anyone considering this would be: unless you are absolutely certain of the consent laws in your state and the state of the person you’re calling, and you have explicitly informed and received consent from every other person on the call, do not use this app.»

Technologies

You’ll Soon Be Able to Buy Walmart Products Through ChatGPT

OpenAI’s chatbot already connects to Etsy and Shopify. Now you can buy bananas too.

OpenAI and Walmart will soon offer shopping via AI through ChatGPT, the retail giant said in a press release on Tuesday.

While using ChatGPT’s Instant Checkout feature, customers can buy groceries, electronics or other essentials within the chatbot interface.

Walmart has its own AI assistant in its app named Sparky. With Sparky, customers can ask questions about products and get summaries of reviews to find the best item.

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«For many years now, e-commerce shopping experiences have consisted of a search bar and a long list of item responses. That is about to change,» Walmart CEO Doug McMillon said in a statement. «There is a native AI experience coming that is multi-media, personalized and contextual. We are running towards that more enjoyable and convenient future with Sparky and through partnerships including this important step with OpenAI.»

When asked for comment, Walmart referred to its press release. Walmart also said it wouldn’t discuss the financial terms of the agreement at this time.

«We’re excited to partner with Walmart to make everyday purchases a little simpler. It’s just one way AI will help people every day under our work together,» OpenAI CEO Sam Altman said in a press release.

OpenAI referred to Walmart’s press release when asked for comment.

The latest deal with Walmart comes as OpenAI tries to make ChatGPT an all-in-one shopping experience. AI chatbots are increasingly being used as vehicles for online shopping. They can synthesize reviews from across the internet and give people direct answers to shopping questions. Already, ChatGPT connects with Etsy and Shopify with its Instant Checkout feature, allowing people to buy directly. OpenAI also added more shopping features in ChatGPT Search earlier this year.

(Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

Technologies

OpenAI Will Loosen ChatGPT’s Mental Health Guardrails and Allow Erotica for Adult Users

Sam Altman said the company will ease limits for adults after rolling out age verification.

ChatGPT is treading cautiously right now, but the chatbot may become more risqué by the end of the year.

In recent weeks, the generative AI chatbot has been operating under somewhat stringent limitations, as OpenAI tried to address concerns that it was not handling sensitive mental health issues well. But CEO Sam Altman said in a post on X Tuesday that the company would ease some of those restrictions because it’s «been able to mitigate the serious mental health issues.»

Though Altman didn’t elaborate on what tools are being used to address the problem, OpenAI recently announced new parental controls in ChatGPT.

CNET reached out to OpenAI for details, but the company did not immediately respond to a request for comment. (Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

Other changes are also expected. Altman said the company could allow «erotica» for verified adult users as it implements an «age-gating» system, or age-restricted content, in December. The mature content is part of the company’s «treat adult users like adults» principle, Altman said.

Altman’s post also announced a new version of ChatGPT in the next few weeks, with a personality that behaves more like the company’s GPT-4o model. Chatbot users had complained after the company replaced 4o with the impersonal GPT-5 earlier this year, saying the new version lacked the engaging and fun personality of previous chatbot models.

«If you want your ChatGPT to respond in a very human-like way, or use a ton of emoji, or act like a friend, ChatGPT should do it (but only if you want it, not because we are usage-maxxing),» Altman wrote.

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After OpenAI was sued by parents who alleged ChatGPT contributed to their teen son’s suicide, the company imposed an array of new restrictions and changes, including parental controls, alerts for risky behavior and a teen-friendly version of the chatbot. In the summer, OpenAI implemented break reminders that encourage people to occasionally stop chatting with the bot.

On Tuesday, the company also announced the creation of a council of experts on AI and well-being, including some with expertise in psychology and human behavior.

This comes as lawmakers and regulators are ringing the alarm on the risks AI tools pose to people, especially children. On Monday, California Governor Gavin Newsom signed new restrictions on AI companion chatbots into law. Last month, the Federal Trade Commission launched an investigation into several AI companies, including OpenAI.

Technologies

Today’s NYT Strands Hints, Answers and Help for Oct. 15 #591

Here are hints — and the answers — for the NYT Strands puzzle for Oct. 15, No. 591.

Looking for the most recent Strands answer? Click here for our daily Strands hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections and Connections: Sports Edition puzzles.

Today’s NYT Strands puzzle is a fun one, once you understand the theme. Some of the answers are a bit tough to unscramble, so if you need hints and answers, read on.

I go into depth about the rules for Strands in this story.

If you’re looking for today’s Wordle, Connections and Mini Crossword answers, you can visit CNET’s NYT puzzle hints page.

Read more: NYT Connections Turns 1: These Are the 5 Toughest Puzzles So Far

Hint for today’s Strands puzzle

Today’s Strands theme is: Going up?

If that doesn’t help you, here’s a clue: Not an escalator, but…

Clue words to unlock in-game hints

Your goal is to find hidden words that fit the puzzle’s theme. If you’re stuck, find any words you can. Every time you find three words of four letters or more, Strands will reveal one of the theme words. These are the words I used to get those hints but any words of four or more letters that you find will work:

ROTATE, LOBE, NOPE, RATS, STAR, SAME, LOSE, VOTE, BUTTE, SAMS, BAMS

Answers for today’s Strands puzzle

These are the answers that tie into the theme. The goal of the puzzle is to find them all, including the spangram, a theme word that reaches from one side of the puzzle to the other. When you have all of them (I originally thought there were always eight but learned that the number can vary), every letter on the board will be used. Here are the nonspangram answers:

ALARM, OPEN, CLOSE, LOBBY, GROUND, BASEMENT

Today’s Strands spangram

Today’s Strands spangram is ELEVATORBUTTONS. To find it, look for the E that’s three letters to the right on the bottom row, and wind straight up, and then straight down.