The Hidden Cost of Free VPNs: How Your Data is Collected and Used

September 19, 2025
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Free VPNs Aren’t Really “Free” – You Pay with Your Data

Virtual Private Networks (VPNs) are designed to boost online privacy, yet nearly half of VPN users still choose free services. The catch? If you’re not paying with money, you’re paying with your personal data. Free VPN providers often log sensitive details, from the websites you visit to your device identifiers and IP addresses, and then monetise that information.

Recent research highlights the scale of the problem: 43% of VPN users rely on free services that may track activity and sell data to third parties. Projections suggest that by 2025, 80% of free VPN apps will embed tracking, and 60% could be selling user data. For anyone seeking privacy, these figures are troubling. It’s the classic case of “if the product is free, you are the product.”

What Data Do Free VPNs Collect?

An infographic titled "What Data Do Free VPNs Collect?" It has three sections: Browsing History: Lists "Invasive traffic logs," "Websites visited," "Online activity." States that this "Undermines VPN purpose" and "Most free VPNs log traffic data." IP Addresses & Connection Info: Lists "Connection timestamps" and "IP addresses." Notes that these can be "Used to identify you." Mentions "Example: Hotspot Shield logged IPs despite 'no-log' claim." Device & Personal Details: Lists "WiFi network names," "Unique device IDs," "GPS location," and "Camera/Contacts access (via trackers)." States this is a "Red flag for data harvesting."
  • Browsing history: Many free VPNs keep invasive traffic logs, storing details about the websites you visit and your online activity. This undermines the very purpose of using a VPN. Investigations confirm that most free VPNs have some form of logging policy, with many recording detailed traffic data.
 
 
  • Device and personal details: Some free VPN apps harvest additional information, from WiFi network names and unique device IDs to GPS location. While others request unnecessary permissions, like access to your camera or contacts, while embedding third-party trackers that can capture your email, phone number, and app usage. Such behaviour is a red flag that your data is being harvested.

How Free VPN Providers Monetise Your Data

A stylized and conceptual illustration showing a smartphone in the centre. From the screen, which has a 'free VPN' icon, thin, digital streams of data leak outward. These data streams are tangled and chaotic, leading to shadowy, faceless figures and commercial logos in the background, symbolising data brokers and advertisers.

Operating a VPN service is expensive, and free providers offset these costs by exploiting user data. Their strategies include:

  • Advertising: Many free VPNs flood users with in-app ads or video commercials, turning your screen time into their revenue.
 
  • Data sales: The most profitable model is selling your data outright to third parties. This could involve your browsing logs, location, or demographic details being passed to advertisers, data brokers, and analytics firms.
 
  • Traffic redirection: In the Hotspot Shield case, the provider not only tracked users but also redirected traffic to e-commerce partners to earn affiliate income – profiting off user activity without consent.
 
  • Analytics sharing: Many free VPNs integrate SDKs from tech giants like Google and Facebook. This means your usage patterns and browsing habits are quietly shared with third-party companies. One study found that 71% of free Android VPN apps shared personal user data with outside organisations.
 
  • Hidden operators: Some free VPNs are owned by marketing firms or even state-linked entities, with the explicit aim of gathering intelligence rather than safeguarding your privacy.

The Risks for Users: Privacy Erosion and Security Threats

Using a free VPN that logs and sells data comes with serious consequences. Instead of protecting your privacy, these services often undermine it, leaving you more exposed than before. Privacy experts warn that VPNs that monetise user data are a major red flag because they defeat the purpose of using a VPN.

Loss of Privacy and Anonymity

If a VPN keeps logs tied to your IP address or account, that information could be handed to authorities or sold to anyone willing to pay. For users bypassing censorship or conducting sensitive research, this is particularly dangerous. A stark example occurred in 2020 when seven “no-log” free VPNs based in Hong Kong exposed 1.2 terabytes of user data online. The leak included personal details, plain text passwords, IP addresses, and extensive internet activity logs, leaving users extremely vulnerable.

Exposure to Breaches and Cybercrime

When breaches happen, the fallout is severe. Once your email, IP, and browsing history are leaked, you can become a target for phishing, identity theft, or extortion. Analysts have warned that leaked VPN logs could fuel phishing campaigns, fraud, blackmail, or even persecution in regions with strict internet controls. Imagine a hacker or government obtaining a list of sites you visited; the implications could be serious.

Malware and Device Compromise

Beyond data misuse, many free VPN apps carry malware or spyware. Studies show that a significant percentage of free VPNs on Android contain malicious code. Such apps can steal additional personal data or compromise your device security. Even without malware, poorly built VPNs may leak DNS requests or your real IP address, failing to provide the security you expect. In Q3 2024, Kaspersky reported a 2.5× spike in fake or malicious free VPN apps, highlighting the growing risks.

Free VPNs vs. Freemium VPNs: What’s the Difference?

When we say “free VPNs,” we’re not talking about VPN providers offering a limited freemium plan; we mean the countless apps that advertise themselves as completely free while secretly making money in other ways. These services typically fund themselves through ads, trackers, data harvesting, and even traffic redirection. In other words, if you aren’t paying a subscription, you’re often paying with your browsing history, personal information, or device data.

At Max Browser, we take a different approach. Our freemium model gives you 2GB of secure VPN data every month with no ads, no trackers, and no hidden monetisation. For heavier users, we offer affordable paid plans, but whether free or paid, we never collect or sell your data.

As a top-tier provider, we also go further than most premium VPNs. By joining Max through transparent subscriptions, not backdoor monetisation, Max Browser can deliver true privacy-first browsing. Add in built-in ad and tracker blocking, and you get a VPN experience that protects you, instead of profiting off you.

Max Browser’s Privacy-First VPN: No-Logs Policies and Trustworthy Practices

Not all VPNs misuse your data. Unlike free providers that rely on tracking and monetisation, Max Browser was built to protect your privacy above all else. We enforce a strict no-logs policy, meaning no browsing history, connection timestamps, IP addresses, or device details are ever stored. 

Combined with our freemium model, offering 2GB of VPN data per month without ads or trackers, we ensure users get genuine privacy without hidden costs.

The bottom line? With Max Browser, you don’t have to choose between affordability and security. You get the convenience of a free plan, the option to upgrade when you need more, and the confidence that your data will always remain yours.