⚠️ Read This First
You’re not the customer. You’re the inventory. A VPN that costs nothing still pays server bills somehow. This piece explains the how.
Downloaded a free VPN last week? Five stars. Millions of downloads. Feels legit.
It isn’t.
Fifteen years in network security. Audited VPN companies. Seen the logs. Seen the deals. And I’ll walk you through exactly why free VPN data selling isn’t paranoia. It’s just… business.
Here’s what most people don’t understand: The VPN industry has a dirty secret. The apps that promise “free unlimited protection” are often the biggest threats to your privacy. Not hackers. Not governments. The apps themselves.
Why would anyone give you something for free that costs them significant money to operate? They wouldn’t. Unless you’re paying in a currency you don’t see: your personal data.
The Money Problem Nobody Mentions
Servers cost real money. Not pocket change.
One high-speed node in Virginia? $400/month. Bandwidth for ten thousand users? Another $1,200. Staff? Security audits? App development across six platforms? We’re talking millions annually.
Nord spends north of $50 million per year on infrastructure alone. Surfshark? Similar ballpark. Express? Even heftier.
Now look at your shiny free app. No subscription. No visible ads. Zero revenue stream apparent.
Where’s the money coming from?
You.
Your browsing patterns. Your location pings. Your search history. Packaged. Sold. To advertisers. Data brokers. Sometimes worse actors.
The Numbers (Not My Opinion)
I don’t speculate. I cite. Here’s what the researchers found.
CSIRO Study — 2017
Australia’s national science agency. 283 Android VPN apps. Dissected.
- 84% — Leaked user traffic. WebRTC holes. DNS leaks. The works.
- 38% — Contained malware. Actual malware. Or tracking libraries indistinguishable from it.
- 18% — Didn’t encrypt at all. None. Zero. The “VPN” was literally just a proxy. No protection.
Process that. Almost one in five “security apps” provided zero security. You thought you were protected. You were more naked than without any app.
Top10VPN Investigation — 2024
150 free VPN apps. iOS and Android. Fresh data.
- 72% — Shared user data with third parties. Documented.
- Multiple apps — Chinese ownership while claiming US or UK jurisdiction. Jurisdiction shopping.
- Privacy policies — Deliberately vague. “Service optimization.” “Partner networks.” Translation: We sell everything.
The Hola Disaster
Remember Hola? “Free unlimited VPN.” 50 million installs at peak.
What the marketing didn’t mention: Your device became an exit node. Other people’s traffic routed through YOUR connection. Your IP address used for… whatever they wanted. DDoS attacks? Possibly. You’d never know.
They also sold bandwidth to a botnet service called Luminati. This isn’t rumor. It’s court-documented. Public record.
The Mechanics of Free VPN Data Selling
Let me break down what actually happens. Behind the curtain. No marketing speak.
Step 1: Logging Everything
Your “no-logs” free app? Logs everything. Every timestamp. Every IP. Every domain you visit. How long you linger.
They build profiles. “User 47829: Male, 25-34, interested in crypto, fitness-focused, shops Amazon at 2am.”
That profile? Worth $0.50 to $5 to data brokers. Multiply by millions. That’s the revenue model.
Step 2: Ad Injection
Some free VPNs modify your HTTP traffic mid-stream. They inject their own ads into websites you browse. You think you’re seeing normal advertising. You’re not. They’ve hijacked your visual experience for profit.
Step 3: Fingerprinting
Even claiming “no logs,” they fingerprint your device. Browser type. Screen resolution. Installed fonts. All unique. All sellable. Logs are just one vector.
Step 4: The “Partner Network” Clause
Read the privacy policy. Look for “trusted partners.” Translation: Anyone who pays gets your data. Simple transaction.
Names That Got Caught
I won’t call out every sketchy app. But some cases deserve sunlight.
SuperVPN
100 million Play Store downloads. 2020. Researchers poked around. Found servers wide open. User data just… sitting there. Public. Anyone could grab it. Email addresses. Payment info. Everything. Google removed it. It returned under a new name. Still operating.
VPN Proxy Master
Ownership traced to Chinese tech entities. Privacy policy permits sharing with “law enforcement” without specifying which country’s law enforcement. If you’re in the EU under GDPR? That’s a massive red flag.
Betternet
CSIRO found it packed with the highest malware presence of any tested app. Fourteen separate tracking libraries embedded. “Free” comes with significant baggage.
Real World Consequences
This isn’t abstract. Real people face real consequences.
Identity Theft Pipeline
Free VPNs log your browsing. They log your logins. Sometimes they log credentials typed into non-HTTPS sites. That data gets aggregated. Sold. Ends up in credential stuffing databases.
Think about it. You log into a forum. Password reuse. Same password for your email. Now someone has both. Your email is the key to password resets. Game over.
Corporate Espionage Risk
Remote workers using free VPNs for “privacy” while accessing company resources? That traffic gets logged. Potentially sold. Your employer’s internal tools, meeting schedules, project names — all visible to whoever buys that data stream.
I’ve seen it happen. Consulting gig in 2019. Employee using free VPN. Competitor somehow knew exactly when product launch was scheduled. Coincidence? Not likely.
Legal Gray Zones
Some free VPNs operate from jurisdictions with zero data protection. China. Russia. Belarus. Your data can be legally compelled by those governments. No warrant. No notification. Just… taken.
You think you’re anonymous. You’re catalogued.
My Evaluation Framework
Here’s how I assess any VPN. Four questions.
- Revenue Model: Where’s the cash coming from? If unclear? You’re the product. Full stop.
- Jurisdiction: Where are they legally based? Panama operates differently than Hong Kong operates differently than the US. Laws matter.
- Audits: Independent verification? By whom? When? No audit means no trust. Period.
- Ownership: Who actually controls the company? Shell corporations are warning signs.
Freemium vs Scamium
Not every free tier is a trap. There’s a real distinction.
Legitimate Freemium (Actually Safe)
- ProtonVPN Free: Swiss jurisdiction. No advertising. Limited servers and speed. Revenue from paid upgrades. Externally audited. Real company.
- Windscribe Free: 10GB monthly cap. Transparent about limitations. Canadian jurisdiction. Clear business model.
Suspicious Free (Avoid Entirely)
- Unlimited data. Unlimited servers. Zero cost. Red flag.
- Privacy policy mentions “partners” or “optimization.” Red flag.
- Ownership hidden or offshore. Red flag.
The rule is dead simple: If it sounds too good? It is. Always.
What Actually Works
I test these tools professionally. Here’s what I run when privacy matters.
My Tested Picks
Yes. They cost money. Three to five dollars monthly. One coffee. And your data stays yours.
Questions I Get Asked
Can I trust ANY free VPN?
ProtonVPN Free. Windscribe Free. Those two are legitimate. Everything else? Verify independently before trusting with anything sensitive.
What if I just use it for Netflix?
Same problem. Data collection happens regardless. Watching Netflix doesn’t make your browsing patterns less valuable to brokers. They want everything.
How do I check if my VPN leaks?
Go to ipleak.net while connected. See your real IP showing? Your real DNS servers? You’re exposed. The VPN is broken or lying.
Is paid automatically safe?
Nope. Paid doesn’t guarantee ethics. Look for audits. Jurisdiction. Transparent ownership. I cover the full breakdown in my VPN selection guide.
How widespread is free VPN data selling really?
Very. The 2024 Top10VPN study found 72% of free apps shared data with third parties. That’s nearly three out of four. The practice of free VPN data selling is the norm, not the exception. It’s baked into the business model.
What about browser extensions?
Same problem. Sometimes worse. Browser extensions have direct access to everything you type and view. A malicious VPN extension can read passwords, credit cards, messages. All of it. Only install extensions from verified, audited sources.
Takeaway
Free VPNs aren’t free. You pay with data. Sometimes with security. Sometimes with your device becoming someone else’s tool.
The research exists. The scandals are documented. The business model is clear.
If privacy matters? Spend the three bucks. Or use a genuinely limited-but-honest service like ProtonVPN Free.
But that random app store VPN with unlimited everything and zero cost? Delete it. Now. Today.
