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Lots of us surf using unsecured Wi-Fi networks, and where I live in the US, Starbucks doesn't require a pass code and the Wi-Fi is up 24/7 regardless of whether the shop is open. Are there any good free VPNs for privacy in such a situation? I'm using Cocoon with Firefox, but I don't have the means to compare it with alternatives. Dave Null
A VPN, or virtual private network, creates a virtual "tunnel" of encrypted data running over the public internet. VPNs first became popular as a way of connecting different parts of a company without the high cost of leasing dedicated phone lines. Secure encryption was needed to protect corporate data, and one consequence was that nobody else – internet service providers (ISPs), snoopers etc – could see what sort of traffic was inside the data stream.
Lots of us surf using unsecured Wi-Fi networks, and where I live in the US, Starbucks doesn't require a pass code and the Wi-Fi is up 24/7 regardless of whether the shop is open. Are there any good free VPNs for privacy in such a situation? I'm using Cocoon with Firefox, but I don't have the means to compare it with alternatives. Dave Null
A VPN, or virtual private network, creates a virtual "tunnel" of encrypted data running over the public internet. VPNs first became popular as a way of connecting different parts of a company without the high cost of leasing dedicated phone lines. Secure encryption was needed to protect corporate data, and one consequence was that nobody else – internet service providers (ISPs), snoopers etc – could see what sort of traffic was inside the data stream.
Today, many individuals are using VPNs for the security and privacy they provide. Some people use VPNs at Wi-Fi hotspots to prevent snoopers from collecting private information. Others use VPNs at home as a way to get around ISPs and service providers blocking certain websites, which may include Pirate Bay, Facebook and BBC iPlayer. Of course, cybercriminals also use VPNs and anonymous proxy servers, though Tor might be a more likely prospect.
Today, many individuals are using VPNs for the security and privacy they provide. Some people use VPNs at Wi-Fi hotspots to prevent snoopers from collecting private information. Others use VPNs at home as a way to get around ISPs and service providers blocking certain websites, which may include Pirate Bay, Facebook and BBC iPlayer. Of course, cybercriminals also use VPNs and anonymous proxy servers, though Tor might be a more likely prospect.
The simplest type of VPN is one that runs at the application level, typically inside a web browser. In your case, this is Cocoon, which is available for different browsers (Firefox and Internet Explorer) and different operating systems (Microsoft Windows, Apple's Mac OS X and Linux). The drawback is that it only protects what's in the browser. If you were to run another browser alongside Firefox, or a separate email program, the data from these other programs would not be protected by Cocoon's VPN.
The simplest type of VPN is one that runs at the application level, typically inside a web browser. In your case, this is Cocoon, which is available for different browsers (Firefox and Internet Explorer) and different operating systems (Microsoft Windows, Apple's Mac OS X and Linux). The drawback is that it only protects what's in the browser. If you were to run another browser alongside Firefox, or a separate email program, the data from these other programs would not be protected by Cocoon's VPN.
The most popular VPN for personal users – which I mentioned in response to your similar question in 2010 – is probably AnchorFree's Hotspot Shield. Like many other cheap or free VPNs, Hotspot Shield is based on open source OpenVPN code, so it encrypts all the internet traffic on your PC: every web browser, email program, and so on. It supports Windows, Mac OS X, and Apple iOS devices, with Android to come.
The most popular VPN for personal users – which I mentioned in response to your similar question in 2010 – is probably AnchorFree's Hotspot Shield. Like many other cheap or free VPNs, Hotspot Shield is based on open source OpenVPN code, so it encrypts all the internet traffic on your PC: every web browser, email program, and so on. It supports Windows, Mac OS X, and Apple iOS devices, with Android to come.
The drawbacks with Hotspot Shield are that, as with Cocoon and some other VPNs, the free versions are supported by showing adverts, though you can avoid these by upgrading to a paid-for version. Hotspot Shield also switches your home page and default search engine, though you can switch these back. This can be annoying and has prompted some users to look elsewhere, but you can pay AnchorFree $29.95 per year for its Hotspot Shield Elite service, or if you use it for travelling, buy 20 one-day passes for $10.
The drawbacks with Hotspot Shield are that, as with Cocoon and some other VPNs, the free versions are supported by showing adverts, though you can avoid these by upgrading to a paid-for version. Hotspot Shield also switches your home page and default search engine, though you can switch these back. This can be annoying and has prompted some users to look elsewhere, but you can pay AnchorFree $29.95 per year for its Hotspot Shield Elite service, or if you use it for travelling, buy 20 one-day passes for $10.
There are, of course, dozens of alternative VPNs, and there's a big list on the internet censorship wiki. The ones worth considering include SecurityKiss, CyberGhost, and It's Hidden. CyberGhost's servers are in Germany, and It's Hidden's are in the Netherlands, which may not suit US users.
There are, of course, dozens of alternative VPNs, and there's a big list on the internet censorship wiki. The ones worth considering include SecurityKiss, CyberGhost, and It's Hidden. CyberGhost's servers are in Germany, and It's Hidden's are in the Netherlands, which may not suit US users.
One of the features of a VPN is that your internet connection appears to come from wherever the server is based: it acts as your proxy on the internet. This can confuse websites that do a lot of geolocation and personalisation, such as Google, which will serve up versions in the local language. This can, of course, be useful. Europeans can use a US-based VPN server to watch videos that are otherwise blocked in our region, while those who live outside the UK can use a UK-based VPN to watch TV programmes on, for example, the BBC's iPlayer. Indeed, AnchorFree produced ExpatShield for Windows, so that pining Brits could get a UK IP and access content available only in UK from anywhere.
One of the features of a VPN is that your internet connection appears to come from wherever the server is based: it acts as your proxy on the internet. This can confuse websites that do a lot of geolocation and personalisation, such as Google, which will serve up versions in the local language. This can, of course, be useful. Europeans can use a US-based VPN server to watch videos that are otherwise blocked in our region, while those who live outside the UK can use a UK-based VPN to watch TV programmes on, for example, the BBC's iPlayer. Indeed, AnchorFree produced ExpatShield for Windows, so that pining Brits could get a UK IP and access content available only in UK from anywhere.
If this kind of thing is important to you, then Hide My Ass! now offers a Pro VPN service that supports different protocols (so you can use OpenVPN for maximum security or PPTP to stream video, for example) and access to 247 servers in 43 countries. So, yes, you can actually get a fast IP address in Japan. However, the service costs $11.52 per month or $78.66 per year.
If this kind of thing is important to you, then Hide My Ass! now offers a Pro VPN service that supports different protocols (so you can use OpenVPN for maximum security or PPTP to stream video, for example) and access to 247 servers in 43 countries. So, yes, you can actually get a fast IP address in Japan. However, the service costs $11.52 per month or $78.66 per year.
The Best VPN Provider comparison website lets you select from dropdown menus such as Destination Country, Protocol and Price/Month to find potential VPN suppliers. However, it only suggests commercial services.
The Best VPN Provider comparison website lets you select from dropdown menus such as Destination Country, Protocol and Price/Month to find potential VPN suppliers. However, it only suggests commercial services.
Most if not all VPN providers have lots of terms and conditions that forbid you from doing bad things, including spamming, and say that they will co-operate with police and other authorities if required. If you plan to use peer-to-peer file-sharing services such as bittorrent, check that these are allowed under the T&Cs. Also check how long they keep records. TorrentFreak has a good article on Which VPN Providers Really Take Anonymity Seriously?
Most if not all VPN providers have lots of terms and conditions that forbid you from doing bad things, including spamming, and say that they will co-operate with police and other authorities if required. If you plan to use peer-to-peer file-sharing services such as bittorrent, check that these are allowed under the T&Cs. Also check how long they keep records. TorrentFreak has a good article on Which VPN Providers Really Take Anonymity Seriously?
Using a VPN protects you from snooping in your local coffee shop and by your ISP, but the VPN provider is decoding your datastream and putting it on the internet, so it sees everything. It has to be a company you trust.
Using a VPN protects you from snooping in your local coffee shop and by your ISP, but the VPN provider is decoding your datastream and putting it on the internet, so it sees everything. It has to be a company you trust.
Also bear in mind that while your ISP cannot see what is in your data stream, it can certainly see you sending lots of encrypted traffic to Hotspot Shield, Hide My Ass! or whatever. So much business traffic now goes via VPNs that I don't expect this is particularly noticeable, but ISPs could filter the obvious free VPNs.
Also bear in mind that while your ISP cannot see what is in your data stream, it can certainly see you sending lots of encrypted traffic to Hotspot Shield, Hide My Ass! or whatever. So much business traffic now goes via VPNs that I don't expect this is particularly noticeable, but ISPs could filter the obvious free VPNs.
There's an increasing tendency for websites to use the https Secure Sockets Layer (SLL) system, shown by a padlock in the browser, and this already encrypts data to protect it from casual snoopers. However, the appearance of "session jacking" software such as the Firesheep add-on for Firefox means a VPN is probably a good idea when using public Wi-Fi hotspots for important data.
There's an increasing tendency for websites to use the https Secure Sockets Layer (SLL) system, shown by a padlock in the browser, and this already encrypts data to protect it from casual snoopers. However, the appearance of "session jacking" software such as the Firesheep add-on for Firefox means a VPN is probably a good idea when using public Wi-Fi hotspots for important data.
But it's also a good idea to start getting familiar with VPNs because of government attempts to monitor people's internet use. If this becomes a reality in the UK, then perhaps we should all start using VPNs all the time. Article 19 of the UN's Universal Declaration of Human Rights says: "Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers." The internet has more or less delivered that right, and using a VPN may be the simplest way to preserve it.
But it's also a good idea to start getting familiar with VPNs because of government attempts to monitor people's internet use. If this becomes a reality in the UK, then perhaps we should all start using VPNs all the time. Article 19 of the UN's Universal Declaration of Human Rights says: "Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers." The internet has more or less delivered that right, and using a VPN may be the simplest way to preserve it.
Comments
32 comments, displaying first
17 May 2012 3:00PM
Well, /dev/null sprang to mind immediately, but Dave has a Facebook page etc and appears to be a perfectly real (and very nice) chap. He often writes to Ask Jack with queries and tips, which usually don't get answered, and as a result, we have become Facebook friends....
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17 May 2012 3:21PM
Might it be easier you avoid the WiFi by using a 3G service or dongle?
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17 May 2012 3:34PM
If you're looking for simple and free, using SSH with SOCKS proxy enabled is one way to go. You'll need the following:
1) A machine running sshd somewhere that you feel is secure (like at home) 2) You will probably need to configure port forwards on the router that machine is connected to 3) The public facing IP address of that machine and optionally a dynamic DNS entry with someone like dyndns set up for it
Then on the machine you're using in Starbucks or wherever, if it's a *nix machine open a terminal and type
ssh -D 8080 mydynamicaddress.dyndns.org
(IIRC Windows users can use PUTTY instead)
Then configure your browser to use localhost port 8080 as your SOCKS proxy.
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17 May 2012 4:43PM
It would be nice! However, dongles often cost money to use, they take longer to connect, they are usually slower than Wi-Fi, and I find they are already quite constrained in what you can access without asking for permission. For example, my BT dongle blocks Oddee and some harmless forums, and I think it blocked my attempt to use a web proxy server.
That's my experience, and I do use dongles whenever I'm on a train, or otherwise out of Wi-Fi range. I wish it were more like a smartphone experience, but in the UK at the moment, it's not.
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17 May 2012 5:36PM
You can compare and see ratings and reviews of different vpns at VPNstudy
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17 May 2012 6:53PM
@maethorechannen :
Tunnelling TCP/IP over SSH (i.e. tunnelling TCP over TCP) is not generally recommended:
Why TCP Over TCP Is A Bad Idea
tl;dr: Both the tunnelling and tunnelled TCP layers' reliability and congestion control mechanisms will interact badly, causing frequent slowdowns and connection breakages.
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17 May 2012 10:42PM
Hi Jack,
I'm wondering what criteria you used in choosing the VPN services worth considering since I've been researching this field for some time now, comparing privacy policies and digging into company backgrounds etc and so far the most credible and trustworthy companies I found were ivpn.net and anonymizer. I'm left wondering if there is perhaps something I don't know.
Thanks, Joanne
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18 May 2012 2:06AM
I've become seriously unimpressed with the growth in state spying. People shrug it off, but the real world equivalent is having someone stood over you every second of the day making notes upon all we do. I think I can speak with certainty that no right minded person would accept that but because the internet watcher is invisible, few protest.
I'm all encrypted up, private email PGP keys, VPNs, geo projection router configs, and anything that is visible to the douche bags at GCHQ or the NSA is what I have intentionally allowed them to see. So what has all this achieved? A drag net of every human connected to the internet on the planet.
No doubt the military industrial complex can be paid vast sums of our taxes to mine how many times a week I watch some dodgy porn. The real threat to the western world is sat in a bunker in Nevada somewhere sipping brandy whilst machinating on how they can launder more of their nations wealth on false flag fear operations.
Liberty is slavery.
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18 May 2012 4:57AM
Don't forget about the free vpn service offered by www.proxpn.com which is worth mentioning because of their log policy. They keep user logs only for 2 weeks. Many others keep them indefinitely. I think looking at server locations and the log policy is important when choosing a service that's supposed to help keep you anonymous.
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18 May 2012 8:59AM
With proXPN a free account is limited to 100kbps. If you want a premium account then that will cost you around $7 per month.
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18 May 2012 9:10AM
When using a company VPN you are not protected against other users inside the company network, but you can assume they are all responsible users, and the company should be making sure all PCs inside the network have up to date anti virus etc.
When using a VPN as described above, any of your fellow users could be hackers and many will have outdated or no antivirus. There is no protection unless each VPN connection is firewalled independently so that it is a network of one. Maybe they do this, but it would be useful if the article covered this area.
The article covers VPN for PCs. Is there anything available for mobile phones?
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18 May 2012 9:53AM
I've just tried out Cocoon - pretty good if you want to try out Hulu - a web based TV/movie site which normally only allows you access from the US.
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18 May 2012 11:04AM
Instead of advocating advert-riddled, bandwidth-crippled or paid-for commercial VPN services (whose providers you then need to blindly trust with the session logs), why not just install the free openVPN server on a home PC, and then the openVPN client on your portable device (clients exist for Mac, PC, Linux, Android, Maemo, iOS amongst others). Using Wake on LAN you can remotely turn on your home PC when required (if it isn't normally left on).
Depending on the way you configure your openVPN installation (I use a TAP device over UTP transport, with the default gateway of my samsung galaxy note redirected to my home PC), you can then surf the web in total safety with NO 3rd party servers in the VPN tunnel, just your own client and your own server. Only downside is that your max download while surfing in this config is limited to the upload speed of your home broadband connection (but that is easily enough for normal usage and in most cases will happily support at least SD quality video streaming too.
The upside (other than the desired privacy/security benefits inherent in your own end to end VPN) are that you can then access anythng (other PC's and/or services thereon; network disk drives, printers etc.) on your own home LAN, without the need to open ports on your router to the internet hackerz.
openVPN, as the name implies is fully open source software, and if you don't want to leave a home PC on, and lack the ability to use Wake on LAN to power it up on demand, you can get routers (openWRT) that have openVPN servers inbuilt.
The basic setup of openVPN is relatively simple. My own config did take a wee while to get right - but it allows password-free connections using PKI which is both fast and secure when you consider the client is an easily lost/stolen mobile phone.
Perhaps not right for the very casual user who just wants a warm feeling of security with little effort - but if you really DO value your privacy & security, the day spent reading the documentation and configuting it on your own devices is time well spent.
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18 May 2012 11:31AM
I use Expat Shield to watch iPlayer malarkey in Spain. It works well, is free and apart from it loading a single browser page, upon initialisation, with some crappy ads and videos, it`s unobtrusive.
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18 May 2012 3:48PM
Done be drawn into using free VPN's. If it free then they are selling you. a simple guide for VPN's are...
1) is it in sweden/iceland or some other datahaven 2) is the price reasonable £15 for 3 months is going rate 3)MOST IMPORTANT does it keep ip log at all. if yes in any way AVOID AVOID
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18 May 2012 11:26PM
Dave Null here. "Null" is an unusual surname. There are about 1400 in the US. My ancestors were Calvinists from the Alsace who emigrated in 1723. The surname was originally "Noll" (small hill, possibly) but the first generation changed it to "Null" probably to reflect the pronunciation.
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19 May 2012 5:35AM
Caution.
If you're going to use a VPN to protect your privacy, make sure your DNS configuration doesn't leak.
Search for VPN and DNS.
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19 May 2012 10:36AM
this is a great article showing you what kind of ways to use a VPN. I always use a VPN whenever sitting in a cafe, normally I tend to use Overplay which is just like Hide My Ass, but I like Hide My Ass as well.
I like the idea of being able to login to different countries and because of that I needed a list of where which VPN's I could use in the different Countries, so I have startet to make a list like that. You can find it here>
http://vpnstars.com
The other site you are mentioning in the article, also looks good I just find it a bit confusing to navigate. I also cannot get their country searching on the frontpage to work.
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20 May 2012 11:45PM
help needed!
Facebook has sent me this screen-message:
---------------------------------------------- Please complete a security checkSecurity checks help keep Facebook trustworthy and free of spam.Use a phone to verify your accountThe phone number you use can only verify one account. Once you enter your number, you'll receive a code that you'll be able to enter on Facebook to verify your account. Your phone number will only be used to verify your account and will not be shared with anyone without your consent.Enter a phone number --------------------------
I don't wanna give them my phone number. Does that mean I am never again able to get access to my own account? They cannot force me to give away my phone number, can they?
Any suggestions?
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20 May 2012 11:46PM
...and why don't they send me the code by email?
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21 May 2012 12:23AM
OMG, I've found a contact form, but now they do not only want my phone number. They have sent me this email:
----------------------- Hi,
Unfortunately, we can’t assist you until you reply and attach identification that verifies the name submitted in your request.
Please attach a copy of one government-issued ID (ex: driver's license or passport) or two documents from a respected institution or business. Together these documents must show your full name, photo, and date of birth.
Some examples of acceptable documents include:
- School or work ID - Utility bill - Marriage license - Legal name change paperwork - Credit card (with the number blacked out) - Birth certificate
If possible, save this file as a JPEG and cover up any personal information that we don't need to verify your identity (ex: address, license number). We also recommend sending your attachments over a secure connection. Find out more here: https://www.facebook.com...........
Note that we won't be able to assist you until we receive the proper documents.
Thanks, The Facebook Team
-----------------------------------
Looks like I have to make a new account.
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21 May 2012 12:50AM
Honestly, Facebook is the biggest spammer at all. They collect user data and and make profit therewith by ads.
And they are accusing me of spam and do say I wouldn't be trustworthy.
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21 May 2012 1:33AM
........ some time ago I criticized a company on Facebook for bad and unfair practices.
I bet they have reported me several times, so that I got blocked now.
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21 May 2012 2:22AM
........ or is it because I "liked" someone who has got a lot of trouble with Nazis?
There are probably many people who want to see my account deleted.
... and many reasons for me not to disclose my phone number and identity.
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21 May 2012 7:12AM
My daughter lives in a small town in australia without the sort of support that one can receive from pcworld's techguys. Your recent article about VPNs when followed up pointed out some risks ( registry type things) All she wants to be able to do is to download Promenade concerts from radio or tv in the coming summer. Is there a safe and simple VPN that she could download that wouldnt mess up her laptop. I dont think she would be wanting to hide her liking for classical music from either the NSA or the KGB so secrecy wouldnt be high on her list. Thanks in anticipation of a helpful reply.
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22 May 2012 1:00PM
In the end we all are very alone and helpless in this world.
Link to this comment:
22 May 2012 9:43PM
If anybody wants to know: Facebook still refuses to unlock my account. And: they don't want to tell me why they have closed it. I mean, I could understand it if they told me a reason. But.......... ??? ..........Why???
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22 May 2012 9:57PM
.... all my data gone. Never save important stuff on Facebook!
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24 May 2012 8:53AM
This comment was removed by a moderator because it didn't abide by our community standards. Replies may also be deleted. For more detail see our FAQs.
26 May 2012 11:38AM
Could someone translate this into english please. Then I might be able to understand, what, and how to do it. Thank you.
Link to this comment:
28 May 2012 12:14PM
You must be able to understand it. He said it was simple.
Link to this comment:
7 June 2012 5:38PM
Further facebook advice to friends like Sss:- I'm seriously considering deleted myself but before doing so I'd take care to (i) Unfriend all friends. (ii) Remove all my likes. (iii) Status updates cant be all removed but I'd delete and change whatever bio I could eg real Name, D.O.B, Hometown etc. (iv) I'd opt out of all apps and any 3rd party permissions. (v) Delete all photos. (vi) Change my email address to avoid unwanted notifications. (vii) Cancel all subscriptions. (viii) Set privacy settings to maximum. This way, even if the account refuses to disappear there is zero useful information in it.
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Dave Null is looking for a good free VPN (virtual private network) to ensure his privacy while using open Wi-Fi hotspots
Lots of us surf using unsecured Wi-Fi networks, and where I live in the US, Starbucks doesn't require a pass code and the Wi-Fi is up 24/7 regardless of whether the shop is open. Are there any good free VPNs for privacy in such a situation? I'm using Cocoon with Firefox, but I don't have the means to compare it with alternatives. Dave Null
A VPN, or virtual private network, creates a virtual "tunnel" of encrypted data running over the public internet. VPNs first became popular as a way of connecting different parts of a company without the high cost of leasing dedicated phone lines. Secure encryption was needed to protect corporate data, and one consequence was that nobody else – internet service providers (ISPs), snoopers etc – could see what sort of traffic was inside the data stream.
Today, many individuals are using VPNs for the security and privacy they provide. Some people use VPNs at Wi-Fi hotspots to prevent snoopers from collecting private information. Others use VPNs at home as a way to get around ISPs and service providers blocking certain websites, which may include Pirate Bay, Facebook and BBC iPlayer. Of course, cybercriminals also use VPNs and anonymous proxy servers, though Tor might be a more likely prospect.
The simplest type of VPN is one that runs at the application level, typically inside a web browser. In your case, this is Cocoon, which is available for different browsers (Firefox and Internet Explorer) and different operating systems (Microsoft Windows, Apple's Mac OS X and Linux). The drawback is that it only protects what's in the browser. If you were to run another browser alongside Firefox, or a separate email program, the data from these other programs would not be protected by Cocoon's VPN.
The most popular VPN for personal users – which I mentioned in response to your similar question in 2010 – is probably AnchorFree's Hotspot Shield. Like many other cheap or free VPNs, Hotspot Shield is based on open source OpenVPN code, so it encrypts all the internet traffic on your PC: every web browser, email program, and so on. It supports Windows, Mac OS X, and Apple iOS devices, with Android to come.
The drawbacks with Hotspot Shield are that, as with Cocoon and some other VPNs, the free versions are supported by showing adverts, though you can avoid these by upgrading to a paid-for version. Hotspot Shield also switches your home page and default search engine, though you can switch these back. This can be annoying and has prompted some users to look elsewhere, but you can pay AnchorFree $29.95 per year for its Hotspot Shield Elite service, or if you use it for travelling, buy 20 one-day passes for $10.
There are, of course, dozens of alternative VPNs, and there's a big list on the internet censorship wiki. The ones worth considering include SecurityKiss, CyberGhost, and It's Hidden. CyberGhost's servers are in Germany, and It's Hidden's are in the Netherlands, which may not suit US users.
One of the features of a VPN is that your internet connection appears to come from wherever the server is based: it acts as your proxy on the internet. This can confuse websites that do a lot of geolocation and personalisation, such as Google, which will serve up versions in the local language. This can, of course, be useful. Europeans can use a US-based VPN server to watch videos that are otherwise blocked in our region, while those who live outside the UK can use a UK-based VPN to watch TV programmes on, for example, the BBC's iPlayer. Indeed, AnchorFree produced ExpatShield for Windows, so that pining Brits could get a UK IP and access content available only in UK from anywhere.
If this kind of thing is important to you, then Hide My Ass! now offers a Pro VPN service that supports different protocols (so you can use OpenVPN for maximum security or PPTP to stream video, for example) and access to 247 servers in 43 countries. So, yes, you can actually get a fast IP address in Japan. However, the service costs $11.52 per month or $78.66 per year.
The Best VPN Provider comparison website lets you select from dropdown menus such as Destination Country, Protocol and Price/Month to find potential VPN suppliers. However, it only suggests commercial services.
Most if not all VPN providers have lots of terms and conditions that forbid you from doing bad things, including spamming, and say that they will co-operate with police and other authorities if required. If you plan to use peer-to-peer file-sharing services such as bittorrent, check that these are allowed under the T&Cs. Also check how long they keep records. TorrentFreak has a good article on Which VPN Providers Really Take Anonymity Seriously?
Using a VPN protects you from snooping in your local coffee shop and by your ISP, but the VPN provider is decoding your datastream and putting it on the internet, so it sees everything. It has to be a company you trust.
Also bear in mind that while your ISP cannot see what is in your data stream, it can certainly see you sending lots of encrypted traffic to Hotspot Shield, Hide My Ass! or whatever. So much business traffic now goes via VPNs that I don't expect this is particularly noticeable, but ISPs could filter the obvious free VPNs.
There's an increasing tendency for websites to use the https Secure Sockets Layer (SLL) system, shown by a padlock in the browser, and this already encrypts data to protect it from casual snoopers. However, the appearance of "session jacking" software such as the Firesheep add-on for Firefox means a VPN is probably a good idea when using public Wi-Fi hotspots for important data.
But it's also a good idea to start getting familiar with VPNs because of government attempts to monitor people's internet use. If this becomes a reality in the UK, then perhaps we should all start using VPNs all the time. Article 19 of the UN's Universal Declaration of Human Rights says: "Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers." The internet has more or less delivered that right, and using a VPN may be the simplest way to preserve it.