Understanding VPN Disadvantages and How to Overcome Them

A Virtual Private Network (VPN) is a tool that encrypts your internet traffic and routes it through a secure server, masking your IP address and shielding your online activity from prying eyes. It’s a popular solution for enhancing privacy, bypassing geo-restrictions, and safeguarding data on unsecured networks.

However, not all VPNs work the same way. Most traditional VPNs rely on centralized infrastructure, meaning the service is controlled by a single entity that manages servers and data routing. Decentralized VPNs (dVPNs), on the other hand, take a different approach by using peer-to-peer technology to distribute the network across multiple nodes. Instead of relying on a central authority, users connect through a global network of independent contributors. We will only be covering centralized VPN downsides, as they are more common, especially among users new to the industry.

VPNs came about as a tool for two purposes: either to enable safe remote access for a user outside of a local network (think of a business VPN that allows a user to access company systems while outside of the office) or to connect to a VPN server to change your online location (IP address), which is more common for private users. The tool also brought other security benefits, such as traffic encryption and its own DNS servers, to reduce website spoofing attempts. However, over time, VPN drawbacks were also discovered, such as the limited nature of its protection (VPNs normally don’t stop malware, for example), user data privacy issues, the possibility of connection drops, and more.

Most of the VPN drawbacks we will be discussing in this article are caused by the rigid, restrictive nature of centralized VPNs and the image of all VPNs as an all-encompassing tool for cybersecurity. VPNs are an excellent tool to protect your privacy online, but they do have their pitfalls. Read our list of the most significant VPN disadvantages below.

1. Security and privacy risks with VPN providers

Security and privacy risks with VPN providers are a significant disadvantage of centralized VPNs, particularly for businesses handling sensitive data. While VPNs are marketed as tools to protect online activity, their effectiveness depends entirely on the provider’s trustworthiness. Centralized VPN services can maintain user logs, ranging from connection timestamps to IP addresses or DNS requests, which undermines the core promise of privacy. These logs, whether stored intentionally or due to insufficient safeguards, can become targets for cyberattacks or government subpoenas.

Some VPNs boast no-logs policies - a promise not to collect or keep any logs that are not absolutely necessary for the functioning of the service. However, as these policies are never legally bound, their enforcement can be weak. For example, BeanVPN was a service with a public no-logs policy. Nevertheless, in 2022, their user data was found unsecured on the internet, containing personal information such as real IP addresses, connection timestamps, user device IDs, and more. Their privacy statement at the time read: “We do not collect logs of your activity, including no logging of browsing history, traffic destination, data content, or DNS queries. We also never store connection logs, i.e., no logs of your IP address, your outgoing VPN IP address, connection timestamp, or session duration.” according to CyberNews, which was clearly untrue.

Decentralized VPNs (dVPNs) address this issue by eliminating a central authority and distributing traffic through peer-to-peer networks. Because there is no centralized logging infrastructure, the risk of data collection or breaches is significantly reduced - there is no single entity that can see everything.

2. Overestimated security assurance

While a Virtual Private Network is an effective tool for encrypting internet traffic and masking IP addresses, it is not a cure-all for every cybersecurity threat. A common misconception among users is that a VPN alone can fully protect against hackers, malware, phishing attacks, or even vulnerabilities in your devices. In reality, VPNs are designed to secure your data while it’s in transit and to obscure your online activity, but they cannot prevent threats that rely on user behavior, such as downloading malicious files or falling for phishing emails. This overestimation of a VPN’s capabilities can leave both individuals and organizations exposed to significant risks if they neglect other essential layers of cybersecurity.

The impact of this misunderstanding is far-reaching. According to the 2024 Verizon Data Breach Investigations Report, 68% of digital data breaches “involved a non-malicious human element, like a person falling victim to a social engineering attack or making an error”. VPNs cannot normally stop a user from clicking on a malicious link or entering sensitive information on a fraudulent website. For businesses, this false sense of security can result in insufficient investment in essential tools like antivirus software, email filtering systems, and employee training programs, leaving critical vulnerabilities unaddressed.

It’s crucial to understand that a VPN is not an all-encompassing cybersecurity solution but rather one component of a broader security strategy. Businesses must adopt a multi-layered security approach, where VPNs work in tandem with other defensive measures to create a broad cybersecurity posture. Nowadays, premium VPNs come with more security features such as antivirus software, ad blockers, and more, so the situation is no longer black and white. However, the general consensus in the industry is that dedicated tools and practices will usually outperform any solution that tries to be all-in-one.

3. High cost and restrictive subscription models

Most centralized VPN providers operate on a recurring subscription basis, requiring monthly or annual payments to maintain access to their services. While basic plans might seem affordable at first glance, premium features, such as access to faster servers, advanced security protocols, or the aforementioned extra security features like antivirus, are often locked behind higher price tiers. For businesses, costs can quickly escalate when purchasing multiple licenses for employees or investing in enterprise-level solutions.

Furthermore, cancellation policies and refund guarantees are often buried in fine print, leaving users trapped in long-term commitments with little recourse if the service doesn’t meet their expectations. The internet is full of dissatisfied customer accounts mentioning the predatory cancellation policies of major centralized VPN providers. The users of one major VPN, for example, complained that you have to press the “Turn off Automatic Renewal” button three times for it to actually work - often resulting in users continuing to pay for the service after thinking it was canceled.

Decentralized VPNs (dVPNs) offer a promising alternative by often adopting pay-as-you-go payment models, allowing users to pay only for the bandwidth they consume. This flexibility can be particularly beneficial for individuals who only require VPN services intermittently.

4. Platforms and devices blocking VPNs

Another significant disadvantage of centralized VPNs lies in their compatibility issues with platforms, devices, and other security tools. Numerous websites, apps, and streaming services actively detect and block VPN traffic to enforce regional restrictions, and copyright agreements, or prevent misuse. The most common VPN fighting method involves routinely blacklisting known VPN server IP addresses. As a result, users often encounter error messages or other countermeasures when trying to access geo-restricted content, even when connected to premium VPN servers. This is not a significant problem when accessing company systems while connected to a corporate VPN, so it only applies when browsing the web, such as when trying to access a bank website.

Additionally, not all devices are fully compatible with VPN software. While PCs, tablets, and mobile phones generally offer broad VPN support, smart TVs, gaming consoles, and IoT (Internet of Things) devices sometimes require manual configuration or lack VPN support altogether.

VPNs can also conflict with other security tools, such as firewalls and antivirus software. For example, a firewall may block VPN traffic if it’s not properly configured, while some antivirus programs might flag VPN software as a potentially unwanted application.

dVPNs are generally less prone to detection and blocking, primarily because they often rely on residential IP addresses and peer-to-peer networks, making their traffic harder to distinguish from regular user activity. However, these tools usually aren’t designed to be used on every type of device, so check if a dVPN you’re interested in has apps or manual setup options for the devices you want.

5. VPN connection drops and leaks

The fifth VPN drawback discussed here is their susceptibility to connection drops and data leaks, which can compromise the very privacy they are meant to protect. A VPN connection drop happens when the secure tunnel between your device and the VPN server is interrupted, temporarily exposing your real IP address and online activity. While many premium VPNs offer a “kill switch” feature to cut off internet access during drops, not all services implement this effectively.

IP, DNS, or WebRTC leaks pose another significant risk. These leaks most often occur with free or misconfigured VPNs. The leak allows third parties to see your IP address or browsing activity even while connected to the VPN. This issue is especially prevalent in mobile applications: a 2024 study by Top10VPN revealed that 16 of the 30 paid Android VPN apps tested leak some sort of data.

It’s important to keep the possibility of a leak in mind, set realistic expectations, and take additional precautions, such as enabling kill switches and regularly testing for leaks, to ensure your VPN protection remains reliable.

6. Impact on internet speed and performance

The negative impact of VPNs on internet speed is a commonly mentioned VPN drawback, which borders more on the side of misinformation. By design, VPNs reroute your traffic through an encrypted tunnel and an intermediary server, which inevitably adds latency (delay) and can slow down your connection. The further the VPN server is, the more load it’s under, and the stronger the data encryption, the slower your connection will be.

However, this issue is mostly relevant for free VPNs, as they invest less into their infrastructure. If you use a premium VPN (as you should), the difference in speed will be negligible. An impact of 10-20% should be expected if you are not connecting to a server located across the world. This kind of difference probably won’t be very noticeable, unless you have a very slow connection to start. In contrast, free VPNs might slow down your connection by half.

On top of that, some centralized VPNs (and especially free ones) might intentionally throttle your connection if you’re consuming too much bandwidth. Activities like streaming in high-definition, downloading large files, or gaming can trigger these restrictions, as free VPN providers often have limited server capacity and need to manage resources across thousands of users. Even premium centralized VPNs sometimes impose soft bandwidth limits to maintain performance for their broader user base, especially when connected to the most popular servers. If you notice consistent slowdowns during high-bandwidth tasks, it might not just be your ISP causing the issue - it could be your VPN provider. For uninterrupted and fair access, decentralized VPNs offer a better alternative, as their distributed infrastructure is less prone to these artificial bottlenecks.

7. Increased data consumption

Using a VPN on mobile devices can somewhat increase data usage, which is especially relevant for users on limited mobile data plans. This happens because a VPN encrypts your internet traffic, adding an extra layer of security but also increasing the amount of data being transmitted. Encryption protocols add overhead to every data packet, meaning more data is sent back and forth between your device and the VPN server. The heavier the encryption, the more extra data it uses.

However, the impact is not big enough to affect your decision whether to invest in a VPN. According to tests by Wlan Labs, internet use with an active VPN might increase by 4-20%.

If you don’t have an unlimited data plan, be aware of this extra data use and plan ahead, since engaging in data-thirsty activities such as watching a high-definition video on your mobile device through a VPN might make you unknowingly consume more data than without it.

8. Legal and regulatory concerns

While VPNs are legal in most countries, their use exists in a complex legal and regulatory landscape that varies significantly depending on where you are and how you use them. In some regions, VPNs are heavily restricted, monitored, or outright banned due to government concerns over bypassing censorship, surveillance avoidance, or access to restricted content. In countries like China, the UAE, Russia, or Iran, unauthorized VPN use can lead to fines, legal action, or even imprisonment. Even Pakistan’s Council of Islamic Ideology declared VPNs “un-Islamic” in November 2024, as reported by Arab News. Governments in these regions typically enforce strict internet control policies and monitor VPN traffic to detect unauthorized usage.

Additionally, using a VPN to violate terms of service agreements, such as accessing geo-blocked content on streaming platforms, can also carry consequences like account restrictions, or even bans. Buying a computer game cheaper while connected to a VPN in a different country is a classic example of an action that could get your account banned by the game service provider. However, the probability of that depends on your specific actions and the terms of the user agreement in question.

Numerous precedents of VPN users getting penalized in countries where they’re illegal or restricted exist. For example, in the year 2023, in China, a local working for a Turkish company with the help of a VPN had all of his income (almost $150,000) confiscated, according to The Guardian. Another Chinese man was sentenced to nine months in jail for selling non-government-approved VPNs, as reported by the South China Morning Post.

Decentralized VPNs (dVPNs) can offer better resistance against detection due to their peer-to-peer structure, the residential IPs they use are much harder to detect. If you absolutely have to use a VPN in a country where it’s banned - use a dVPN. Just keep in mind that they are not immune to regulatory restrictions. Governments can still penalize end-users if dVPN usage violates local laws.

9. Centralized vulnerability

Centralized VPNs operate on a fixed infrastructure of servers managed and controlled by a single provider. While this structure allows providers to maintain consistent performance and user experience, it also creates critical points of failure. If any of these servers are compromised, whether through a cyberattack, government intervention, or internal mismanagement, it can result in widespread service disruptions, data exposure, or even surveillance risks. This is especially relevant for businesses that use corporate VPNs to enable remote work on a day-to-day basis, as company secrets might be at risk or internal systems could be out of reach for extended periods of time.

In 2020, a massive security incident happened when VPNMentor discovered an unsecured database shared by seven free VPN providers. This database contained highly sensitive user data, including activity logs, personally identifiable information (PII) such as names, emails, and home addresses, cleartext passwords, Bitcoin payment details, support messages, and even device specifications. The breach highlights a critical flaw in the centralized nature of these VPNs. When a single provider controls all of the servers and data storage, any oversight or vulnerability can lead to widespread exposure of user information.

Decentralized VPNs address this issue by removing reliance on a central authority or a fixed set of servers. Instead, they distribute traffic across a peer-to-peer network, making it significantly harder for any single node to become a point of failure. This structure not only improves resilience but also minimizes the risk of large-scale data breaches or service disruptions.

10. Centralized VPN restrictions in high surveillance events

In regions experiencing heightened surveillance, political unrest, or state-imposed internet blackouts, centralized VPNs often become high-priority targets for government authorities. These VPN services rely on a fixed network of servers operated by a single provider, which means governments or regulatory bodies can identify, block, or even physically seize these servers to restrict access. In extreme cases, VPN providers may be pressured into handing over user data or entirely disabling their services. The centralized structure creates a single point of failure, making these VPNs particularly vulnerable during critical moments when users rely on them the most.

The threat of these restrictions is very real. In May 2024, the Belarusian government tried to block VPN use in the country to restrict elections for the Coordination Council, an opposition-led advisory body exiled following President Alyaksandr Lukashenka’s widely disputed 2020 reelection. Belarusians can only vote in the opposition’s election via the internet. As the website and app required for voting are banned within the country, VPNs become the main tool to enable participation, which makes them a primary target. The VPNs were restricted by blocking internet ports most commonly associated with VPN use, the Belarusian opposition news outlet, Zerkalo, informs.

dVPNs offer a significant advantage in these scenarios. Blocking connections based on known VPN server IP addresses remains the most common measure for restricting VPN use. Since dVPNs rely on a network of independent nodes with many of them hosted by ordinary people, they are much more difficult to find and block. Adding to that, even if some nodes are compromised, the network as a whole remains operational due to its decentralized nature. While no solution is entirely immune, decentralized VPNs present a far less predictable target, making them our preferred choice.

Critical disadvantages of free VPNs

Free VPNs might seem like an easy win for anyone looking to save money while browsing securely, but they often come with serious trade-offs that undermine their main purpose. Running a VPN service isn’t cheap, it involves maintaining servers, keeping the network stable, and investing in strong security protocols. Free VPN providers still need to cover those costs, and they usually do so at the expense of your privacy, security, or overall experience. Here are the biggest drawbacks of free VPNs:

• Data logging and selling: Free VPNs are much more likely to track and log your browsing activity, IP address, and personal details, then sell that data to advertisers or third parties.
• Weaker security standards: Free services can rely on outdated encryption protocols, leaving your data vulnerable to hacks and breaches.
• Bandwidth limitations: Expect data limits and throttled speeds, which can make streaming, downloading, or even basic browsing painfully slow.
• Intrusive ads and malware risks: Free VPN apps are often loaded with annoying ads, and some even hide malware or tracking scripts.
• Limited server options: You’ll typically only have access to a handful of overcrowded servers, resulting in slow and inconsistent connections.

According to in-depth research of 100 free Android VPN apps by Top10VPN, 90% of free VPNs suffer from some sort of data leak (IP, DNS, or WebRTC), 36% have less than optimal encryption, 71% are sharing user data with third parties and 19% are suspected to contain malware. These reasons should be enough for you to choose a premium VPN and never look back.

Weighing VPN disadvantages against the benefits

VPNs have become a cornerstone of online privacy and security for private users and businesses alike. However, like any technology, VPNs come with their share of drawbacks too. Below, we break down the key advantages and disadvantages of centralized VPNs for you to compare.

Advantages	Disadvantages
Encrypts communication - more privacy	Centralized providers might log user data
Bypasses geo-restrictions and censorship	Potentially reduces internet speed
Protects against public Wi-Fi threats	May drop connections, leading to data exposure
Masks IP address to enhance anonymity	Barely protects against malware, phishing, and advanced cyber threats
Enables remote work and secure access to corporate systems	Has legal and regulatory risks in some countries or services
Access region-locked services and content	Actively blocked by some services and governments

While VPNs are not without flaws, their advantages remain substantial. The ability to protect sensitive data, ensure privacy on public networks, and access restricted content often outweigh the drawbacks, which can be reduced if you know what to do. The key lies in choosing a trustworthy provider and understanding the limitations of the technology. In most cases, the benefits of using a VPN, especially in high-risk online environments, are simply too great to overlook. With that in mind, the customer is king - if you really don’t want to go for a VPN, there are plenty of VPN alternatives available.

How to minimize VPN disadvantages?

Follow these steps to reduce the risks of using a VPN as much as possible:

1. Start by choosing a paid VPN provider that hasn’t been involved in any data privacy scandals, has a no-logs policy, and perhaps even independent audits of its services.
2. Share as little data as possible. If you’re extremely cautious about privacy - pay by crypto.
3. Enable advanced security features such as multi-hop (routing connection through multiple servers/nodes), kill switch (cuts your internet connection if VPN stops working), and use multi-factor authentication.
4. Update your VPN client regularly to receive all the latest security updates.
5. Switch to the Wireguard protocol if your VPN allows. It’s one of the best and newest protocols available.
6. Select the port 443 TCP in your VPN client if possible. It will lower the chances of your VPN getting blocked if you’re under an oppressive government.
7. Disable IPv6 on your VPN and WebRTC on your browser. They are one of the more common data leak causes.
8. Stay vigilant. A VPN won’t protect you from all cyber threats. Don’t open suspicious links, don’t trust any commercial offers that sound too good to be true, don’t send money to any African princes.
9. Finally, if you can - use a decentralized VPN. They are much less likely to be detected and blocked by services and governments alike and are built for the privacy-conscious, with a much smaller amount of user data visible by the service provider.

Centralized VPN vs dVPN: a comparison of PROs and CONs

While both centralized and decentralized VPNs (dVPNs) aim to protect online privacy, secure internet connections, and bypass censorship, they differ significantly in their structure, resistance to censorship, and how they handle user data. You can compare centralized and decentralized VPNs for yourself below:

Criteria	Centralized VPN	Decentralized VPN (dVPN)
Control	Massive centrally owned servers with thousands of users	Users distributed across smaller peer-to-peer nodes
Privacy	Trust-based, potential logging risks, no-logs cannot be guaranteed	Stronger privacy, no central control enable true no-logs policies
Performance	Consistent speeds on dedicated servers	Varies based on node type
Censorship Resistance	Easier to block by authorities	​​Harder to block, more resilient
Security	Servers are well protected, but bigger target for hackers	Security and risk vary by node

Centralized VPNs rely on a single authority, which makes them more vulnerable to censorship, likely to suffer from logging and server breaches. Decentralized VPNs, on the other hand, offer better privacy, transparency, and resistance to censorship. For those prioritizing security and independence, dVPNs stand out as the superior choice.

How to overcome centralized VPN disadvantages with a dVPN?

Overcoming centralized VPN disadvantages is much easier than it might seem. First up, download PortalsVPN on your preferred device, set up an account and pay for the service. After that, install the client and launch it. Choose a location you want to connect to and vuala! You are ready to browse the web while being much safer and more private.