Phony follows the story of Alex, a struggling filmmaker who is having a hard time finding love, career success, or even just a sense of purpose. After months of failed attempts at meeting someone, he decides to consult his womanizing friend, Jack, for some advice. Jack suggests that they create a film about online dating in which they pretend to be interested in women just to exploit them for footage, and Alex reluctantly agrees.
The two men begin their project by creating fake dating profiles, attending speed dating events, and messaging various women online. They become increasingly successful in their endeavors, secretly filming their encounters and even convincing some women to come back to their apartment for further "interviews." As their deception continues, Alex feels uneasy about continuing down this path, but Jack insists that it's all harmless fun and for the sake of creating a good movie.
However, the documentary takes a dark turn when one of the women that they have been seeing begins to suspect that something isn't right. She confronts the men, and Alex realizes the impact of their actions on the women they have been exploiting. He begins to question his values and realizes that he wants to make a change.
In the end, the documentary exposes the deception of online dating and the exploitation of vulnerable women. Alex seeks redemption by apologizing to the women they hurt and vows to never again take advantage of someone's emotions for the sake of his career. The film serves as a cautionary tale about the dangers of objectifying people and the importance of genuine connection.