What Is a VPN and Do You Need One?

Almost nothing you do on the internet is private. Whether it’s your internet service provider tracking your browsing activity or a company collecting data for targeted ads, your digital footprint is constantly under scrutiny. That’s where VPNs come in.

A VPN, short for virtual private network, is a tool that can help shield your internet traffic and protect your personal information. VPNs also mask your location, which is particularly useful when traveling and you need to bypass geographical restrictions to access your home content.

CNBC Select discusses what VPNs are, how they work and whether you should consider getting one.

Compare identity theft protection services

At its core, a VPN is a technology that protects your online privacy by hiding your location and internet activity. It works by encrypting your internet connection and routing your traffic through different servers to mask your IP address, which is essentially your device’s unique identifier. This makes it harder for your internet service provider (ISP) and third parties to track your data.

VPNs can provide an extra layer of security when using public Wi-Fi networks, where your data is more vulnerable to hackers. By hiding your true location, they also allow you to bypass geo-restrictions, giving you access to websites and streaming services that may not be available in your region.

Normally, when you use the internet, your ISP acts as a middleman, requesting data from websites and then delivering it to you. However, when you use a VPN, your traffic is rerouted through secure servers and kept private.

Many VPNs use a method called tunneling, where your data is sent through a secure “underground” passage, ensuring nobody else can see it. Your data is also encrypted, meaning it’s scrambled into an unreadable format to prevent unauthorized access.

Will a VPN protect me from viruses?

A VPN by itself generally won’t protect you from viruses because it can’t prevent you from clicking a malicious link or attachment. However, many VPN providers offer an antivirus, either as a separate product or bundled service.

Using a strong antivirus program is crucial for protecting your sensitive information. Bitdefender Antivirus Plus performed well during lab testing and offers a few additional benefits like a file shredder and a secure banking browser. While Bitdefender’s Antivirus comes with a VPN, it’s fairly limited, so pairing it with a standalone one could help.

VPN pricing can sometimes be a bit confusing as the service providers often run a variety of discounts and offer multiple plan tiers. VPNs often start at around $10 to $15 per month, but longer subscriptions typically include deeper discounts, and plans vary in their exact offerings.

Experts often recommend staying away from free VPNs due to their limited functionality, but some can still be useful. Proton VPN offers a free version with many of the same security features as the paid version, and you can choose to upgrade later if you want access to some premium features, like more servers or coverage for additional devices.

Almost anyone can benefit from a VPN they are relatively straightforward to use. Many companies even require employees to use VPNs when working remotely.

We named NordVPN one of the best VPNs with servers in over 100 countries and some heightened security options like a kill switch. Its basic monthly VPN plan starts at $12.99 and it offers additional tiers with more features like a password manager or more cloud storage, and offers over 6,000 servers.

For those with multiple computers and smartphones, Surfshark could be a good fit as it covers an unlimited number of devices with just a single plan. The starter plan comes with VPN access plus ad and pop-up blockers, masked email generator, personal detail generator and higher tiers offer additional benefits.

There are a few things to consider when choosing a VPN provider:

• Price: Many VPNs offer monthly, yearly and multi-year subscriptions at varying prices. Many VPN providers offer free trials or money-back guarantees, allowing you to test them before fully committing.
• Compatibility: Make sure the VPN you’re considering is compatible with your devices. Many are compatible on major platforms like iOS, Android, MacOS and Windows, but this can vary by company.
• Speed: Using a VPN can affect your internet speeds, so you’ll want to choose one that doesn’t negatively impact your connection too much.
• Number of servers: While the number of servers doesn’t directly translate to quality, having more servers means more options for you to choose from, and can help reduce server crowding which could slow down your connection.
• Security features: Choose a VPN that takes your security seriously, and may include features like having a no-logs policy (doesn’t store any activity data), and a kill switch that cuts your internet connection if you’re disconnected from the VPN.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.