How do free VPNs make money and what are the real risks?

Last update: 1 September, 2026
  • There are legitimate business models based on transparent advertising and freemium plans subsidized by paying users.
  • Some dangerous services monetize by selling personal data, tracking web activity, or using the user's device as an exit node.
  • Free VPNs often have technical shortcomings such as outdated protocols, DNS leaks, and a lack of critical features like a kill switch.

Person using a tablet with an active VPN connection, illustrating the ease of use of these tools.

I'm sure it's happened to you: you're about to install a VPN for more peace of mind while browsing, and you're faced with two options: pay a monthly subscription or go for the free version. At first glance, free sounds great, but in the world of cybersecurity, there's a saying that's practically law: if you're not paying for the product, you are the product . I'm not trying to scare you, but maintaining a server infrastructure spread across the globe costs a fortune, and no company gives away bandwidth just for the love of it.

To understand where the catch lies (or if there isn't one), we need to look under the hood of these applications. Not all free VPNs are malicious, but it's true that the funding model determines the security of your connection. From companies that simply want you to try their service to suspicious networks that use you as a pawn in cyberattacks, the range is vast, and it's important to know how to distinguish one from another to avoid completely compromising your privacy.

Related articles:
VPN: How it Works and How to Use It

Transparent and ethical business models

Laptop computer displaying a security padlock and a world map, representing a secure and global VPN connection.

Some providers play fair and use strategies that don't compromise your privacy. The most common model is freemium , where a small percentage of users pay a premium subscription to fund free access for everyone else. In this case, the paying users are the ones who keep the lights on and the servers running.

  Gemini now allows you to create Excel, PDF, and Word files directly from the chat.

Typically, to make the business profitable, the free version has some deliberate limitations . It's very common to find a limited number of available countries, limits on monthly data, or slower speeds. This way, the user has basic protection, but if they want maximum speed for streaming or gaming, they're tempted to upgrade to the paid plan, thus avoiding the problems of using a trial VPN.

Another honest approach is non-intrusive advertising . Some apps display banners or short videos before connecting to the tunnel. The important thing here is that they sell advertising space (like a billboard on the highway) and not your identity. In other words, the advertiser knows that someone saw the ad, but they don't have access to your real IP address or browsing history.

Firefox VPN free
Related articles:
Complete Guide to Firefox's Free VPN and Alternatives

The dark side: when your data is the currency of exchange

Close-up of the word 'Security' on a digital screen, highlighting the technical aspect of cybersecurity.

This is where things get ugly. Some services, lacking clear revenue streams, decide to monetize the only thing they have at hand: your information. Some free VPNs install tracking pixels and cookies to monitor your every move online and then sell those profiles to marketing companies or data brokers.

The most serious issue arises when the provider keeps detailed logs . Even if they claim to have a "no-logs" policy, some have been caught recording IP addresses, connection times, and visited websites. This information is a goldmine for third parties and, in the worst-case scenario, can end up in the hands of governments or censorship agencies in countries with restrictive laws.

There's a particularly dangerous model called bandwidth sharing . Some services turn your device into an exit node. This means that other users' traffic (which could be criminal) passes through your connection. If someone commits a crime using your IP address, you could be implicated in a police investigation without having done anything wrong, simply for using a free app, adding to the risks of having a free VPN installed.

remove digital footprint online
Related articles:
Remove your digital footprint online: a complete guide to reclaiming your privacy

Technical deficiencies and safety hazards

Wooden letters spelling out 'Data Breach' on a dark background, symbolizing the privacy risks of free VPNs.

It's not all about data theft; sometimes the problem is simply that the service is bad because they don't have the money to invest in quality. They often use outdated encryption protocols like PPTP or L2TP, which can be broken in a matter of hours with brute-force attacks, leaving your traffic exposed.

  Everything you need to know about Rideshare "Stimulator"

Furthermore, many of these apps suffer from DNS leaks , meaning that even though the traffic is encrypted, website name queries still pass through your internet service provider (ISP), which still knows exactly where you're accessing the site. Adding to this is the lack of a kill switch , that vital feature that cuts off your internet connection if the VPN drops, preventing your data from being leaked without your knowledge.

There are even cases where the app is a Trojan horse. Free VPNs have been detected functioning as malware distribution networks , installing Trojans to mine cryptocurrency on your mobile device or hijacking your device to become part of a massive botnet designed to launch cyberattacks, highlighting the need to implement key strategies to protect your devices.

Modern white wireless router with four antennas and decorative lights in shades of blue and pink, representing advanced network technology.
Related articles:
How to set up a VPN on your router to protect your entire home

How to spot a reliable free VPN

Laptop with the text 'Cyber ​​Security' in red, emphasizing the importance of online data protection.

To avoid playing Russian roulette with your privacy, you should look out for certain signs. A good sign is that the company clearly explains how it makes money. If they admit to using ads and premium plans, that's a positive. It's also crucial that the app is available in official stores like Google Play or the App Store, as these go through basic, though not foolproof, security filters.

  Microsoft limits Office features on Windows 10 and pushes the transition to Windows 11

On the other hand, steer clear of those that request absurd permissions , such as access to your contacts, SMS messages, or photo gallery—things a VPN doesn't need to function. If the privacy policy is vague, hard to find, or written in confusing language, chances are they're hiding the fact that your personal data is what they're selling.

The best option will always be to look for providers that perform external audits . When a company hires an independent accounting or security firm to verify that they truly don't keep records, it demonstrates that they have nothing to hide. If you can't afford a premium service, look for the free tier offered by a reputable brand with a solid business model.

Browsing securely shouldn't cost a fortune, but it also can't be free without consequences. The key is to choose services that prioritize transparency and use funding models based on advertising or subscriptions to paid plans, avoiding at all costs any apps that don't explain their source of income or that request excessive permissions, since the risk of data breaches, malware, or identity theft is too high when the service doesn't have a clear cost.

VPN in Firefox
Related articles:
How to use a VPN in Firefox: extensions, services, and tricks