How do VPNs work, Its Uses & How to Choose

The shift to remote work accelerated digital transformation but also presented cybercriminals with opportunities to target less secure home networks. The early months of the COVID-19 pandemic in 2020 saw a surge in malicious online activity, with over 2,000 pandemic-related domain names registered in just three months. Singapore itself experienced phishing scams exploiting public concern.

When accessing company information online, your data's journey can be vulnerable to interception. To mitigate these risks and protect your online communication, this article will explain how Virtual Private Networks (VPNs) work and how you use them, addressing questions like why do I need a VPN and is it necessary.

What is a VPN?

A Virtual Private Network (VPN) establishes what is essentially a secure, encrypted connection for your internet traffic. When you connect via a VPN, all data transmitted from your device is first encoded and then routed through a dedicated VPN server, shielding it from unauthorised access. 

Both your incoming and outgoing online communications are channelled through this secure server, rendering them concealed from your Internet Service Provider (ISP) and network administrators. The primary use of a VPN is to ensure that your online activities remain private, safeguarding them from potential eavesdropping by malicious actors, the websites you visit, and even your ISP.

How do VPNs work?

Spend 10 seconds on this diagram, and you will know how a VPN works!

A VPN creates a secure, encrypted “tunnel” between your device and the internet. Here’s how it works:

1. Connecting to a VPN server: Your device first establishes a connection to a VPN server, which is maintained by the VPN provider. This server acts as an intermediary point for all your online traffic.

2. Encryption: Once connected, all data transmitted between your device and the VPN server is encrypted. This process scrambles your data, making it unreadable to anyone who might be trying to intercept it along the way.

3. Masking of IP address: The VPN server replaces your device’s actual IP address with its own. This makes it appear as if your internet activity is originating from the VPN server's location, effectively hiding your identity and location from websites and online services.

Why do I need a VPN & is it necessary?

For individuals working remotely or frequently using public Wi-Fi in places like airports and cafes, a VPN offers a layer of security. In these environments, your internet connection becomes a potential target for cyber threats, with risks ranging from eavesdropping to data interception.

A VPN addresses this by creating a secure, encrypted tunnel for your online activity usage, shielding your communications and masking your IP address, thus providing essential protection in vulnerable digital spaces.

Understanding the risks of not using a VPN

Without the security provided by a VPN, your internet traffic is inherently exposed, leaving you vulnerable to various online threats. Your data transmissions can be intercepted by malicious actors, and your online activities can be tracked by websites, advertisers, and even your Internet Service Provider. This increases the potential for data theft, identity theft, and unauthorised access to your sensitive personal and professional information.

What is VPN used for: Key benefits

A VPN offers several key benefits that enhance online security and privacy.

Secure your data & privacy

By masking your IP address, a VPN helps protect your identity and browsing habits from websites, advertisers, and potential hackers, enhancing your online privacy.

Secure data transmission

VPNs encrypt your internet traffic, safeguarding sensitive information such as passwords, emails, and financial transactions from cyber threats during transmission.

Access to restricted content

By connecting to servers in different locations, VPNs allow you to bypass geo-restrictions and access content available in other regions.

Safe use of public Wi-Fi

When connected to public Wi-Fi networks, VPNs encrypt your internet connection, protecting your data from potential interception. While a VPN masks your public IP address from apps and websites, using split tunnelling might not fully conceal your location. This masking of your IP address prevents snooping on your online activity.

Protection against cyberattacks and malicious websites

While not a direct antivirus, a VPN can offer a degree of protection by encrypting your connection, making it harder for some types of cyberattacks, like those on public Wi-Fi, to succeed. Additionally, some VPN services may offer features that warn against or block known malicious websites.

When do you need a VPN: Use cases

VPN usage proves particularly useful in various online scenarios to enhance security, privacy, and access.

Enhancing security with remote work

When working from home or accessing your organisation's digital resources remotely, a VPN establishes a secure and encrypted connection to the company's internal network. This ensures that sensitive corporate data remains protected from potential interception as it travels over the internet.

Travelling abroad

While overseas, you might encounter restrictions on accessing services or content that are typically available in Singapore. VPN usage allows you to connect to servers located in Singapore, effectively bypassing these geo-restrictions and enabling access to your familiar online services and content.

Online shopping and banking

Engaging in online transactions, such as shopping or banking, involves transmitting sensitive financial information. A VPN encrypts your internet traffic, adding an extra layer of security to protect your passwords, account details, and transaction data from potential cyber threats.

Importance of choosing a secure VPN

Choosing a trustworthy VPN is crucial for effective online protection. Prioritise reputable providers over free, less reliable options. Here's how to verify a secure VPN:

• Strong encryption: Ensure the VPN uses robust encryption like AES-256. Check their website for encryption details.

• No-logs privacy policy: Verify a clear policy stating they do not log your online activity.

• Transparency & audits: Look for published transparency reports and independent security audit reports on the provider's website and via cybersecurity review sites like Security.org.

• Kill switch & DNS leak protection: Confirm the VPN offers a kill switch to prevent data leaks if the connection drops, and DNS leak protection to maintain anonymity.

• SG legal compliance: Ensure the provider complies with data protection laws in Singapore; review their terms and privacy policy.

How to choose the right VPN provider: 4 key considerations

Selecting the appropriate VPN provider requires careful consideration of your specific usage and the provider's reliability. While numerous online reviews exist, focusing on these key aspects will guide your decision:

1. Think about your use case

Your individual requirements and usage will significantly influence the type of VPN needed. Frequent travellers should prioritise robust security and worldwide server coverage. Families might need VPNs supporting multiple simultaneous connections. For streaming and large data transfers, reliable connections and unlimited bandwidth are essential. Define your desired features before evaluating providers.

2. Data privacy and security

As all your internet activity will be routed through the VPN provider's servers, their data logging policies are critical. Review their Terms of Service for details on data logging. For security, check their encryption protocols; modern protocols like OpenVPN are preferable to outdated options like PPTP. Reputable providers often publish security audit reports from independent firms for added assurance.

3. Keep trade-offs in mind

VPN providers with extensive global server networks can generally offer faster data transmission speeds, though this often comes with a higher subscription cost. Plus, stronger security measures might slightly reduce connection speed. Some providers offer adjustable encryption levels, allowing you to balance security and speed according to your needs.

4. Read reviews and check trustworthiness

Similar to online shopping, reviewing VPN providers can offer insights into their reliability and customer satisfaction. Consult reputable websites that publish rankings of top VPN providers and cross-reference these reviews. Furthermore, consider whether the provider offers 24-hour customer service, which can be crucial for resolving setup or connection issues.

Common risks and mistakes to avoid during VPN usage

VPN usage can greatly improve your online security and privacy, but certain oversights and choices can undermine its effectiveness. Awareness of these common pitfalls is crucial to ensure you are truly protected.

1. Choosing unreliable or free VPN provider

Opting for a free or unverified VPN service can introduce significant risks. Such providers may have weak security measures, log your online activity and sell it to third parties, or even bundle malware with their applications. Entrusting your data to an unreliable VPN can be more detrimental than not using one at all.

2. Failing to disconnect when not in use

While a VPN provides protection when active, leaving it connected unnecessarily might not always be optimal. It can potentially slow down your internet speed for activities where its security benefits are not essential. Keeping a persistent connection might, in some rare cases, present unforeseen vulnerabilities if the VPN service itself experiences a breach, too. 

3. Using VPNs with weak encryption or no kill switch

Not all VPNs offer the same level of security. Using a VPN with weak encryption protocols can still leave your data vulnerable to determined cyber threats. Also, the absence of a kill switch feature is a risk. If your VPN connection drops unexpectedly, your internet traffic will revert to your default connection, potentially exposing your data without your knowledge.

Maintain your online security

While a VPN is valuable for improving your online security, it is crucial to recognise that it forms part of a broader strategy for digital safety. Think of it as one important step in a comprehensive approach to protecting your online life.

To truly secure your digital presence, consider implementing a range of best practices. Enabling Multi-Factor Authentication (MFA) wherever possible adds a second layer of defence against unauthorised access. Employing a reputable password manager to generate and securely store strong, unique passwords for all your online accounts is equally vital.

Regularly updating your devices and applications ensures that known security vulnerabilities are addressed. Lastly, remaining vigilant against phishing attempts and securing your home or business Wi-Fi network are essential measures.

By adopting these habits alongside VPN usage, individuals and businesses can strengthen their online security posture. For more detailed guidance on safeguarding your digital life, we encourage you to explore resources from trusted cybersecurity authorities and government advisories, such as our blogs on  how to prevent phone hacking and how to prevent phishing.

Frequently asked questions about VPNs

Is VPN legal in Singapore?

The usage of Virtual Private Networks (VPNs) is generally legal in Singapore for personal use. However, using a VPN to commit illegal activities remains unlawful and will be subject to the existing laws of Singapore. There may also be specific regulations or restrictions on VPN usage within certain organisations or for specific purposes, so it's advisable to check relevant policies if applicable.

How exactly do you use a VPN?

VPN usage typically involves these steps:

1. Choose a VPN provider: Select a reputable VPN service and subscribe to their plan.

2. Download and install the VPN application: Most providers offer user-friendly applications for various devices (computers, smartphones, tablets).

3. Launch the VPN application: Open the installed application on your device.

4. Connect to a VPN server: Select a server location from the list provided by the VPN app. You can choose a server in Singapore or another country depending on your needs.

5. Verify the connection: Once connected, your device's internet traffic will be routed through the VPN server. The app will usually indicate that the connection is active. You can then browse the internet and use online services as usual, with your connection being encrypted and your IP address masked.

Is it safe to use a free VPN service?

Exercising caution with free VPN services is advisable. Some free VPNs may have weaker security measures, log your online activity, display intrusive advertisements, or even contain malware. It is generally recommended to opt for a reputable paid VPN service that offers strong encryption, a clear privacy policy, and transparent practices.

Will I need to connect to the VPN every time I browse?

For continuous protection of your internet traffic and privacy while browsing, keeping your VPN connection active is generally necessary. Once you disconnect, your internet traffic will revert to your regular connection without the encryption and IP address masking provided by the VPN. Most VPN applications allow you to easily connect and disconnect as needed.