When you use Hola VPN, your internet traffic is routed through other peers (called nodes), but it’s not encrypted. This means users of Hola VPN throw their real IP address into a pool of IP addresses for other users to use as they please. Hola VPN is a peer-to-peer overlay network that uses peer-to-peer caching and routing for quick access to blocked content.
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Thankfully, this is now clearly advertised when you download the app, as you can see in the screenshot below. This practice has sparked criticism among cybersecurity professionals.
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Luminati uses free users’ bandwidth, which is charged per gigabyte, without reimbursing the free user. Hola Networks Limited provides a free consumer ‘VPN’ service, as well as a premium subscription and corporate service called Luminati. The product was launched in 2012, and gained traction in January 2013 when it moved from 80 downloads a day to 40,000 overnight. Hola VPN was founded by Ofer Vilenski and Derry Shribman under the company name Hola Networks Limited, based in Israel. This is not a service you want to entrust all your personal data with. In short, Hola’s privacy and logging policy is unsatisfactory. What’s even worse, Hola will retain all this information for “as long as necessary.” We may also transfer or disclose Personal Information to our subsidiaries, affiliated companies.” “We may disclose Personal Information to other trusted third party service providers or partners for the purposes of providing you with the Services, storage and analytics. Hola tries to reassure its users that it doesn’t “rent or sell any personal information,” but that doesn’t mean it doesn’t share it with third parties: If you choose to subscribe to the VPN through a social network account, Hola has access to even more information including: your home address, birth date, profile picture, friend list, personal bio, and any publicly available information on your account. Your name, email address, screen name, payment and billing information.Here’s what Hola VPN stores when you use its service: In fact, we rarely see logging policies as intrusive as Hola’s. Hola VPN is a very privacy unfriendly service.