Why You Don’t Need a VPN App to Borrow Online

A VPN is the latest trend in cybersecurity that promises a private connection to the Internet. It says so right in its full name, Virtual Private Network. But this encryption service isn’t necessarily a must-have for people who bank online using a line of credit. While it can make your online activity next to impossible to track, it isn’t perfect, and you have other ways to protect your personal information when you borrow online.

What is a VPN App?

As mentioned above, VPN stands for Virtual Private Network. It’s a method of encryption that establishes a secure connection between your computer and the VPN provider, as a buffer to the Internet.

This connection or buffer is often called a tunnel. Any personal information sent through the tunnel undergoes encryption, or scrambling, so that it’s incredibly difficult for hackers to spy on your activity and advertisers to track you online. The same goes for any information sent to your computer. Movement through the tunnel in reverse will encrypt data.

Why Do People Use Worry About Encryption?

Any time you browse the Internet, you share personal information. Most websites and apps collect the basics, like cookies, IP addresses; and computer system information, and that’s before you fill out any information voluntarily. 

When it comes to borrowing money, you have to exchange personal information at various steps of the process. To apply, you may have to share your Social Insurance Number, contact details, bank account information, and employment history. Any time you want to check your account, you have to share your credentials online. 

People who use VPNs worry that their connection isn’t secure enough to share this data safely. After all, the information you share in an application is a treasure trove of financial data that; in the wrong hands, can be used against you. Fraudster who manages to steal your personal information can open payday loans in your name; leaving you on the hook for a high-cost cash advance. 

Why a VPN App May Not Be Necessary

While fraud is a growing concern, a VPN App may not provide the protection you expect.

Legitimate online loan lenders already have systems in place to secure the data you share with their servers and vice versa. A VPN simply adds another layer of encryption to encryption already in place. Using one doesn’t hurt your cybersecurity, but borrowing online without a VPN doesn’t mean you are unprotected. 

A legitimate online lender like Fora follows the latest encryption requirements for online financial services. Their platform already encrypts the data you may share at any step of the borrowing process — from the initial application to dispersal of funds and account maintenance. 

The best VPNs are also often locked behind a paywall. Adding a new expense to your budget when you’re already juggling a line of credit may not be the best use of funds, especially when your online lender already takes care of security. 

A study also shows certain VPNs lack the privacy you seek. Some VPN companies monitor traffic, saving your activity on their servers. This research reveals some VPN apps have vulnerabilities that expose your data or lack privacy policies entirely. 

While you may trust a good VPN with your security, the only time it may be necessary is if you like to use unsecured Wi-Fi to do your banking. But if you always take care of your finances at home on a trusted connection, following these free cybersecurity tips may form a better defence.