Proxy servers - The dangers of free and open proxy servers:

Whenever you search the internet or visit web sites for advice about how to unblock web sites or how to surf securely, there are a multitude of people erroneously recommending 'free proxy servers' or 'open proxy servers'. However, in the end, they can cost you bundles -- in more ways than you ever imagined!

In order for a proxy server to deliver secure or unblocked traffic, it must have a connection to a large internet pipe. It needs bandwidth to deliver information back to you, and hundreds if not thousands of others, in a reasonable period of time. The thing about bandwidth is that it costs money. Therefore, large amounts of bandwidth costs a lot of money. Tack onto that the cost of the servers, proper maintenance, as well as keeping up with the latest security patches, and you have a very expensive proposition. So, you have to ask yourself -- how/why are people out there spending lots of money putting up open proxy servers, for free? The only logical answer is that they are creating a method of getting a return on their investment.

Some people create proxy servers in their home or off low other bandwidth connections. Their goal is to stuff the session with advertisements that you click on which generates money for them. The click through on such advertisements and the payout is extremely low. However, since they are offering virtually no bandwidth and the connections are painfully slow their costs are minimal. The ads always take precedence over your surfing. The plan is that while you are waiting you will click on some ads! Like all proxy servers, these will get blocked in short order by most firewalls, resulting in dwindling revenue for the aspiring entrepreneur. When that happens he signs up for a few new domain names, renames his servers and spams the forums with his latest "fresh proxies". The cycle then repeats over and over again.

The fact is, most open or free proxy servers are run by hackers. Their "return on investment" is in stealing your information and getting access to your computer. If you have ever used a free proxy server, you might have wondered why they seem to go away all the time. Part of the reason for this is that the server accounts are set up by hackers who are using stolen credit cards. When they are discovered, they are shut down by the hosting companies.

Hackers commit many illegal acts, including credit card fraud. They mine your data while you're connected to their proxy server and access credit card and personal information, in order to acquire credit cards in your name. Although this in itself is more than enough reason to never use a free proxy, it actually gets worse.

When these hackers commit their illegal acts, they must cover their tracks. They need to make sure nobody knows their true internet (IP) address and identity. The easiest and most efficient way to do this is to create a chain of computers that are under their control but which belong to unsuspecting people. By connecting through your computer to do the crime, they ensure that your IP address gets logged as the place where the hack originated. Then they sit in some far away land, stealing credit cards, ordering goods with those cards, or even planning some other crime, all in your name.

When hackers set up an open proxy, the term 'Hacker Pot' is used. It comes from a similar term called a 'Honey Pot'. A Honey Pot is a server, set up by government agencies or security professionals, to entrap people who are looking for free proxies. Many hackers have been tracked down through the use of such machines. However, even if all you are trying to do is unblock your favorite social site, you have reason to be concerned. Most web sites that recommend free proxies are full of Honey Pots. Even if you do nothing illegal while accessing this machine, you are committing a federal felony. The reason is that unauthorized access of a government computer is a felony in itself and you can go to jail for it. They don't have to announce to you that this machine is a government computer. Since you are accessing the computer without permission, you are breaking the law. It's your responsibility to know where you are connecting to. Is it worth even the remote possibility of having the FBI knock on your door some day by using a free proxy?

The bottom line is, using a free proxy server is pretty much guaranteed to have your identity stolen, allow your computer to be taken over or put you in violation of federal law.