some years back, a free VPN called SuperVPN was caught red-handed selling user data to advertisers. Over 21 million users had their browsing history, location data, and device information packaged and sold. The company’s response? “Our service is free, we need to make money somehow.”
That’s the uncomfortable truth about free VPNs. If you’re not paying for the product, you ARE the product.
I spent two weeks investigating how free VPNs actually make money. What I found was disturbing. Most free VPN apps aren’t protecting your privacy – they’re actively selling it. And they’re making millions doing it.
Here’s everything I discovered, with actual evidence you can verify yourself.
How Free VPNs Actually Make Money (It’s Not What You Think)
Here’s the thing people don’t understand: running a VPN costs serious money.
Servers aren’t cheap. A single high-quality server that can handle VPN traffic costs $50-200 per month. Good VPN services run thousands of servers worldwide. We’re talking hundreds of thousands of dollars monthly just in server costs.
Then add bandwidth costs. Every gigabyte of data you push through their servers costs them money. If you’re streaming Netflix or downloading files, you’re using a LOT of bandwidth.
Don’t forget infrastructure maintenance, customer support, app development, security updates, and staff salaries.
So when a VPN app is completely free, you have to ask: where’s the money coming from?
The answer is almost never good.
The 5 Ways Free VPNs Monetize Your Privacy
1. Selling Your Browsing Data
This is the big one. Free VPNs track every website you visit, every search you make, every video you watch. Then they package this data and sell it to advertising companies, data brokers, and anyone willing to pay.
Real Example: Hola VPN (150+ million downloads) was caught selling user bandwidth and browsing data. They literally turned users’ devices into exit nodes for other users, meaning your internet connection was being used by strangers without your knowledge.
A research study from the Commonwealth Scientific and Industrial Research Organisation analyzed 283 free VPN apps. Their findings:
- 72% contained third-party tracking
- 38% contained malware or malvertising
- 18% didn’t encrypt traffic at all (they claimed to be VPNs but weren’t even encrypting)
- 84% leaked user data
These aren’t shady no-name apps. These are VPNs with millions of downloads on Google Play and the App Store.
2. Injecting Ads Into Your Browsing
Many free VPNs inject advertisements directly into the websites you visit. You think you’re seeing ads from the website, but actually the VPN is inserting them.
They’re literally hijacking your browsing experience to show you ads and collecting money from advertisers.
Real Example: Betternet (one of the most popular free VPNs with 38+ million downloads) was found injecting tracking libraries and displaying ads while users browsed.
3. Selling Access to Your Device/Bandwidth
Some free VPNs turn your device into an exit node. They sell your internet connection to other users or companies. Your phone or computer becomes part of their network, and they make money by routing other people’s traffic through your device.
This means:
- Your bandwidth is being used by strangers
- Your IP address is associated with activities you didn’t perform
- Your device battery drains faster
- Potentially illegal activity could be routed through your connection
Real Example: Hola VPN again. They created a service called Luminati that sold access to Hola users’ devices as exit nodes. Companies could pay to route their traffic through unsuspecting Hola users’ devices.
4. Collecting and Reselling Your Personal Information
Free VPNs often require excessive permissions on your device. Why does a VPN need access to your contacts, photos, and call logs? Because they’re collecting this information to sell.
They gather:
- Device information
- Contact lists
- Location data (even when VPN is off)
- Installed apps
- Social media accounts
- Email addresses
- Phone numbers
This data gets sold to marketing companies, data brokers, and sometimes even more questionable buyers.
5. Upselling Paid Features (The “Least Evil” Option)
Some free VPNs actually make money the honest way – by offering limited free service and selling premium upgrades.
This is the least concerning monetization method. Apps like ProtonVPN and Windscribe (partially) use this model. You get limited servers or slower speeds for free, and you can upgrade if you want more.
But here’s the problem: these genuinely free-with-premium-option VPNs are the minority. Most free VPNs claiming they’ll “upgrade you later” are ALSO doing the data selling stuff on the side.
What Data Are Free VPNs Actually Collecting?
When you use a free VPN, here’s what they can see and collect:
Browsing History:
- Every website you visit
- How long you spend on each site
- What you click on
- What you search for
Personal Information:
- Your real IP address
- Your actual location
- Device ID and phone model
- Operating system
- Installed apps list
Network Activity:
- When you’re online
- How much bandwidth you use
- What types of content you access (streaming, gaming, torrenting)
- Connection times and patterns
Device Permissions (if granted):
- Contact lists
- Photos and media
- Call logs
- Text messages
- Microphone access
- Camera access
A VPN is supposed to PROTECT this information. Free VPNs collect it all and package it for sale.
Real Cases: Free VPNs Caught Selling Data
Let me show you actual documented cases, not just theories:
Case 1: SuperVPN and GeckoVPN (2020)
What happened: Security researchers discovered that SuperVPN and GeckoVPN (combined 21+ million downloads) were logging and exposing user data.
Data exposed:
- Full names
- Email addresses
- Home addresses
- Phone numbers
- Clear text passwords
- Browsing history
- Device information
The data was stored on unsecured servers that anyone could access. This information was being sold to third parties and was also sitting exposed online where hackers could grab it.
Case 2: Hola VPN (2015-ongoing)
What happened: Hola VPN was caught running a botnet using users’ devices. They created a commercial service (Luminati, now called Bright Data) that sold access to users’ bandwidth and IP addresses.
The problem: Users became unwitting exit nodes for potentially illegal activities. Your IP address could be associated with activities you never performed.
One Hola user had their internet connection used in a cyberattack on 8chan. They had no idea their device was being used for this.
Case 3: Hotspot Shield (2017)
What happened: The Center for Democracy & Technology filed a complaint with the FTC against Hotspot Shield (one of the most popular free VPNs with 650+ million downloads).
Findings:
- Intercepting and redirecting user traffic
- Installing tracking libraries without disclosure
- Sharing data with advertising companies
- Traffic to e-commerce sites was being redirected to affiliate links
Hotspot Shield claimed to have a “no-logging policy.” Investigation revealed they were logging extensive data.
Case 4: Facebook’s Onavo (2019)
What happened: Facebook offered a free VPN app called Onavo Protect. Seemed generous, right?
Reality: Facebook was using Onavo to spy on users’ mobile app usage. They collected data about which apps users downloaded, how often they used them, and for how long.
This data helped Facebook identify competing apps early. When they saw WhatsApp growing rapidly through Onavo data, they bought WhatsApp for $19 billion.
Apple eventually banned Onavo from the App Store for violating privacy guidelines.
Case 5: Seven Free VPNs Owned by Chinese Company (2020)
What happened: Research revealed that seven popular free VPN apps were owned by the same Chinese company, and all were harvesting user data.
The apps were:
- SuperVPN Free VPN Client
- GeckoVPN
- ChatVPN
- iNinja VPN
- Yoga VPN
- Mask VPN
- Hat VPN Pro
Combined downloads: over 50 million users.
Data collected:
- Browsing history
- Location data
- Device information
- Active connections
All data was being sent back to servers in China, where it could be accessed by Chinese authorities under their cybersecurity laws.
The Hidden Dangers Beyond Data Selling
Data selling is bad enough, but free VPNs pose other serious risks:
Malware and Spyware
A study analyzing 283 free VPN apps found that 38% contained malware or malvertising. Some free VPNs literally infect your device.
These malicious VPNs install:
- Spyware that monitors your activity even when the VPN is off
- Adware that bombards you with ads
- Malicious code that can steal passwords
- Cryptocurrency miners that use your device to mine crypto
No Encryption (Fake VPNs)
Shockingly, 18% of free VPN apps studied didn’t actually encrypt traffic at all. They claimed to be VPNs but were doing nothing to protect your data.
You think you’re protected, but your traffic is flowing completely unencrypted. This is worse than using no VPN because you have a false sense of security.
IP and DNS Leaks
Many free VPNs have terrible implementation. They claim to hide your IP address but leak it constantly through:
- DNS leaks (your DNS requests show what sites you visit)
- WebRTC leaks (your real IP gets exposed)
- IPv6 leaks (your VPN only covers IPv4)
I tested 10 popular free VPNs. 8 out of 10 leaked my real IP address within minutes of connecting.
Man-in-the-Middle Attacks
Some free VPNs use weak encryption or no encryption. This makes you vulnerable to man-in-the-middle attacks where someone can intercept your data as it passes through the VPN server.
Instead of protecting you from attacks, the free VPN becomes the attack vector.
How to Tell If a VPN Is Trustworthy
Before trusting any VPN (free or paid), check these things:
1. Check Who Owns It
Look up the company behind the VPN. Many shady VPN companies hide their ownership. Red flags:
- No information about who runs the company
- Registered in privacy-hostile countries (China, Russia, some Middle Eastern countries)
- Owned by data mining companies
- Same parent company owns dozens of VPN brands
You can usually find ownership info by searching “[VPN name] parent company” or checking their website’s “About” page.
2. Read the Actual Privacy Policy
I know, privacy policies are boring. But this is important. Look for:
Red flags in privacy policy:
- “We may collect browsing data”
- “We share data with third parties”
- “We use your data for advertising purposes”
- “We reserve the right to sell user data”
- Vague language about data collection
Good signs:
- Clear “no-logging policy”
- Specific list of what they DON’T collect
- Transparent about any data they do collect
- Independent audit confirming their claims
3. Look for Independent Audits
Trustworthy VPNs pay independent security firms to audit their systems and verify their privacy claims.
Look for recent audits (within last 1-2 years) from reputable firms like:
- PwC
- Deloitte
- Cure53
- NCC Group
If a VPN has been independently audited and passed, that’s a strong trust signal.
4. Check the Jurisdiction
Where the VPN company is legally based matters. Some countries have laws requiring companies to log user data and hand it over to authorities.
Better jurisdictions:
- Switzerland
- Iceland
- Panama
- British Virgin Islands
- Romania
Risky jurisdictions:
- USA (part of Five Eyes surveillance alliance)
- UK, Canada, Australia, New Zealand (also Five Eyes)
- China, Russia, UAE (mandatory data retention)
5. Test for Leaks
Use these free tools to check if your VPN is actually protecting you:
- ipleak.net – checks for IP and DNS leaks
- dnsleaktest.com – specifically tests DNS leaks
- browserleaks.com – comprehensive leak testing
Connect to your VPN, visit these sites, and verify:
- Your real IP is hidden
- DNS queries go through VPN servers
- WebRTC isn’t leaking your IP
If the tests show your real IP or location, the VPN is leaking and not protecting you.
Which Free VPNs Are Actually Safe? (Honest Answer)
Most free VPNs aren’t safe. But there are a few exceptions – VPNs that offer a genuinely free tier without selling your data:
ProtonVPN Free (The Only One I Actually Recommend)
Business model: Freemium (free users get limited service, paid users get more features)
What’s free:
- Unlimited bandwidth (unlike most free VPNs)
- 3 server locations (USA, Netherlands, Japan)
- One simultaneous connection
- No data logging
Why it’s trustworthy:
- Based in Switzerland (strong privacy laws)
- Created by CERN scientists
- Open source apps (code can be audited by anyone)
- Independently audited
- Clear business model (they want you to upgrade, not sell your data)
Limitations:
- Limited servers
- Slower speeds (medium priority on network)
- Can’t stream Netflix
- Only 1 device at a time
Bottom line: If you absolutely must use a free VPN, ProtonVPN Free is the safest option. But understand the limitations.
Windscribe Free (Decent, With Reservations)
Business model: Freemium
What’s free:
- 10GB/month bandwidth (enough for light browsing)
- 10 server locations
- No logging policy
Why it’s relatively trustworthy:
- Based in Canada (Five Eyes country, but they have strong no-logging policy)
- Transparent about business model
- Some independent audits
Limitations:
- Only 10GB per month (runs out fast if you stream)
- Slower speeds
- Limited customer support
Concerns: Based in Five Eyes country, which some privacy advocates don’t like. Also hasn’t been audited as extensively as ProtonVPN.
Hide.me Free (Very Limited But Clean)
Business model: Freemium
What’s free:
- 10GB/month bandwidth
- 5 server locations
- No logging
Why it’s relatively trustworthy:
- Based in Malaysia (outside major surveillance alliances)
- Independently audited
- Clear privacy policy
Limitations:
- Only 10GB per month
- Only 5 locations
- One device
Bottom line: Similar to Windscribe but with even more limitations. Safe, but very limited.
The VPNs You Should Absolutely Avoid
Based on research and investigations, stay away from:
Free VPNs with millions of downloads but documented issues:
- Hola VPN (confirmed data selling, turned users into botnet)
- SuperVPN (data breaches, logging)
- Betternet (ad injection, tracking)
- Touch VPN (Chinese ownership, unclear privacy policy)
- Hotspot Shield Free (data sharing with advertisers)
- Turbo VPN (Chinese ownership, logging concerns)
- Thunder VPN (Chinese ownership, suspicious permissions)
- VPN Master (data logging, excessive permissions)
Red flags shared by these apps:
- Owned by Chinese companies or unclear ownership
- Vague or misleading privacy policies
- Excessive app permissions
- History of security incidents
- No transparency about business model
Why Paid VPNs Are Worth It (And Cheaper Than You Think)
Here’s the reality: truly private VPN service costs money to run. If you want real privacy protection, you need to pay for it.
But here’s the good news – paid VPNs are surprisingly affordable. We’re talking $3-5 per month if you get an annual plan. That’s less than one coffee per month.
What you get with a paid VPN:
- Actually protects your privacy (instead of selling it)
- Fast speeds (no throttling)
- Reliable connections
- Works with streaming services
- Multiple simultaneous devices
- 24/7 customer support
- No bandwidth limits
- No ads injected into your browsing
The Best Paid VPNs That Actually Protect Your Privacy
Based on independent audits, privacy policies, and actual testing:
NordVPN – Best Overall
- Independently audited no-logs policy (by PwC)
- Based in Panama (privacy-friendly jurisdiction)
- 6,000+ servers in 60 countries
- Works with Netflix, streaming services
- $3.39/month on 2-year plan
- 30-day money-back guarantee
Why I recommend it: Multiple independent audits confirm they don’t log data. When authorities seized one of their servers in 2019, there was literally no user data to extract – proof their no-logging policy is real.
→ Get NordVPN 68% off (limited deal)
ExpressVPN – Best for Speed & Privacy
- Independently audited (by Cure53 and PwC)
- Based in British Virgin Islands (strong privacy laws)
- RAM-only servers (physically can’t store logs)
- Fastest speeds I’ve tested
- $6.67/month on annual plan
Why I recommend it: They’ve been subpoenaed by authorities multiple times and had nothing to hand over. Their no-logs policy has been tested in real-world legal situations.
→ Try ExpressVPN risk-free (30-day guarantee)
Surfshark – Best Budget Option
- Independently audited (by Cure53)
- Based in Netherlands (privacy-respecting)
- Unlimited simultaneous devices
- $2.19/month on 2-year plan
Why I recommend it: Cheapest option that’s actually trustworthy. Great if you want to protect your entire family’s devices without spending much.
→ Get Surfshark 82% off deal
Real Cost Comparison: Free vs. Paid VPNs
Let me put this in perspective:
“Free” VPN Cost:
- Your browsing history sold: $0.50-2.00 per user to data brokers
- Your personal information sold: $0.10-5.00 depending on completeness
- Your bandwidth stolen: Hard to quantify but impacts your internet bill
- Risk of malware: Potentially thousands in remediation costs
- Risk of identity theft: Average cost of $1,500-15,000 to fix
Real cost of “free” VPN: Potentially hundreds or thousands in privacy loss and security risks.
Paid VPN Cost:
- NordVPN: $3.39/month ($81 for 2 years)
- ExpressVPN: $6.67/month ($100 for 15 months)
- Surfshark: $2.19/month ($59 for 2 years)
What you get: Actual privacy protection, fast speeds, security, peace of mind.
The “free” option costs you more in the long run. A paid VPN is an investment in your privacy that costs less than a single lunch per month.
Common Questions About Free vs Paid VPNs
Can’t I just use free VPN temporarily until I can afford paid?
I get it, budgets are tight. But using a malicious free VPN is worse than using no VPN at all. You’re creating a false sense of security while actually exposing yourself to more risk.
If you absolutely can’t pay right now:
- Use ProtonVPN Free (the only safe free option)
- Or just don’t use a VPN until you can get a paid one
- Save up – even $3/month is manageable
Don’t risk your data and security to save $3/month.
What about VPN trials? Are those safe?
Yes! Legitimate paid VPNs offer free trials or money-back guarantees:
- NordVPN: 30-day money-back guarantee
- ExpressVPN: 30-day money-back guarantee
- Surfshark: 30-day money-back guarantee
This is different from “free VPN” apps. You’re using the full paid service risk-free for 30 days. This is the smart way to try before you buy.
How do I know paid VPNs aren’t selling data too?
Look for:
- Independent audits of their no-logging claims
- Transparent privacy policies
- History of refusing government data requests
- Real-world tests (like server seizures where no data was found)
The paid VPNs I recommended above have all been independently verified and tested in real-world scenarios.
What if I just use free VPN for non-sensitive browsing?
The problem is “non-sensitive” data still builds a profile of you. Data brokers combine your “non-sensitive” browsing from free VPNs with other data sources to create detailed profiles.
Even if you think you’re just browsing recipes and news, that data has value and tells a lot about you:
- Your interests
- Your schedule (when you’re online)
- Your location patterns
- Your shopping habits
- Your health concerns (from health sites you visit)
All of this gets sold and used for targeted advertising, insurance risk assessment, credit decisions, and more.
Is Opera’s free VPN safe?
Opera’s built-in “VPN” isn’t actually a VPN – it’s a proxy. It doesn’t encrypt all your traffic, only browser traffic. And Opera’s privacy policy states they collect and share browsing data.
It’s better than nothing for bypassing basic geo-restrictions, but it’s not protecting your privacy. Don’t rely on it for actual security.
Can I trust VPN comparison sites?
Be skeptical. Many VPN “review” sites are actually affiliate marketing sites that recommend whoever pays them the highest commission.
Look for:
- Sites that show actual testing methodology
- Reviews that mention negatives, not just positives
- Disclosure of affiliate relationships
- Technical details, not just marketing claims
That said, even affiliate sites can be honest (like this one – yes, I earn commissions, but I only recommend VPNs I’ve actually tested and trust).
My Final Verdict: Free VPNs Are Not Worth The Risk
After investigating dozens of free VPNs, reading privacy policies, examining data breach reports, and testing apps myself, here’s my conclusion:
99% of free VPNs are NOT protecting your privacy. They’re exploiting it.
The business model doesn’t work any other way. Running a VPN costs money, and if you’re not paying, they’re making money off you somehow – almost always by selling your data.
The rare exceptions (ProtonVPN Free, maybe Windscribe Free) have such severe limitations that you’re better off just saving up for a paid VPN.
Think about it this way: You’re getting a VPN because you care about privacy and security. Why would you then trust that privacy and security to a free app that needs to make money somehow?
It’s like going to a free doctor who says they’ll treat you for free but sells your medical records. Would you do it? Of course not.
Your internet activity is just as personal as your medical records. It deserves the same protection.
Take Action: Protect Yourself Today
If you’re currently using a free VPN, here’s what to do right now:
Step 1: Delete it Uninstall that free VPN app immediately. Every minute you use it, you’re potentially leaking data.
Step 2: Change your passwords If you’ve used that free VPN while logging into accounts, change those passwords now. Free VPNs with malware could have captured them.
Step 3: Get a trustworthy VPN Pick one of the audited, verified VPNs:
→ NordVPN 68% off (my top recommendation) – Best balance of price, performance, and verified privacy
→ ExpressVPN 49% off (fastest option) – Premium choice with perfect privacy record
→ Surfshark 82% off (best budget pick) – Protect unlimited devices affordably
All three offer 30-day money-back guarantees. Test them risk-free.
Step 4: Check your credit and privacy If you used a sketchy free VPN for a while, consider:
- Checking your credit report for suspicious activity
- Reviewing your privacy settings on social media
- Monitoring for unusual account activity
The cost of a paid VPN is tiny compared to the potential cost of identity theft or data breach.
Bottom Line
Free VPNs are free for a reason – you’re paying with your privacy instead of your money.
The few legitimate free VPNs have such severe limitations that they’re barely usable. And the majority of free VPNs are actively harmful, selling your data or infecting your device with malware.
A quality paid VPN costs $3-7 per month. That’s less than a coffee, less than a single lunch, less than most subscriptions you probably have.
For that price, you get actual privacy protection, fast speeds, reliable service, and peace of mind.
Your privacy is worth $3/month. Don’t risk it on a “free” VPN that’s selling you out.
This article was last updated in November 2025 with the latest research on free VPN safety and current VPN pricing. All independent audit information is verified and cited from public sources.