Beware of Free VPN Extensions: Urban VPN Proxy Privacy Scandal Exposed

In a concerning development for internet privacy advocates, security experts have uncovered alarming behavior in a popular free VPN browser extension. The Urban VPN Proxy extension, with millions of users across major browsers, has been caught covertly collecting sensitive user information from artificial intelligence interactions.

Researchers at Koi Security revealed that the extension contains hidden functionality designed to capture, compress, and transmit users' complete AI conversation prompts to the company's analytics servers. This data was reportedly being collected for sale to third-party data brokers who use such information for advertising targeting and user profiling.

The privacy breach potentially affects approximately eight million users who installed the extension believing it would enhance their online privacy rather than compromise it. This incident highlights the significant risks associated with free VPN services that often monetize their operations through data collection practices.

This case reinforces warnings from major tech companies about the dangers of unvetted VPN applications. Google recently included specific cautions about malicious VPN apps in its fraud advisory documentation, suggesting this problem extends far beyond a single provider.

Cybersecurity experts consistently advise internet users to exercise caution with free security tools and to research providers thoroughly before installation. Legitimate VPN services typically maintain transparent privacy policies, undergo independent security audits, and offer clear information about their business models.

To protect yourself online, consider using established VPN services with proven track records of respecting user privacy. While these typically require subscription fees, the cost represents an investment in genuine privacy protection rather than exposing your data to unknown third parties.

Recent investigations have uncovered alarming activities linked to the Urban VPN Proxy browser extension, which appears to compromise user privacy despite its claims of security. The concerning behavior activates whenever users visit popular AI platforms such as ChatGPT, Claude, Gemini, Microsoft Copilot, Perplexity, DeepSeek, XAI Grok, and Meta AI.

Researchers from Koi Security revealed that a covert data collection module was introduced in the extension’s July 9, 2025 update (version 5.5.0). This module functions independently of whether the VPN service is active, continuously capturing data during user interactions with supported AI sites. Although the extension boasts features intended to warn users about sharing sensitive information, these alerts do not disable the underlying data harvesting process. As a result, even when warnings are turned off, the extension silently transmits user conversations.

Captured data, which can include everything from routine queries to highly confidential information like medical records, financial data, proprietary coding, and personal issues, is compressed and transmitted in real-time. The data is sent to analytics.urban-vpn.com and stats.urban-vpn.com servers, where it’s aggregated and later sold to third-party brokers such as Bisciance. These brokers distribute behavioral and browsing profiles to advertising networks like AdClarity and Clickstream OS, fueling targeted advertising campaigns and profiling efforts.

The stealthy update mechanism employed by the extension means users often remain unaware of the invasive data collection, as updates occur automatically through the browser’s standard update process. This covert approach transforms a tool initially marketed as privacy-conscious into a potential vector for data leaks on a large scale—affecting an estimated eight million users globally, with six million on Chrome alone. Similar malicious scripts have also been found embedded in related extensions like 1ClickVPN Proxy, Urban Browser Guard, and Urban Ad Blocker.

The breadth of information captured highlights serious privacy risks. Sensitive content such as medical questions, financial details, and personal dilemmas are vulnerable to exposure. Such leaks could facilitate identity theft, financial fraud, corporate espionage, and the development of highly detailed user profiles used for aggressive targeted advertising—actions that fundamentally undermine the privacy guarantees VPN services are supposed to provide.

This case is not isolated. Numerous free VPN extensions have been flagged for malicious activities, including embedding adware, installing malware, or acting as surveillance tools. For instance, a recent report highlighted a free Chrome VPN extension that secretly screenshot every webpage visited, effectively turning the browser into a surveillance device. Similarly, “free unlimited VPN” extensions, notorious for years of data theft, were removed in May 2025 but later reemerged with even more aggressive data collection tactics.

The underlying issue with most free VPN offerings is their inability to sustain rigorous security and privacy standards due to limited revenue. Many monetize user data through undisclosed collection practices, excessive permissions, or intrusive advertising. Unlike these, reputable VPN providers such as NordVPN adhere to transparent privacy policies, undergo independent security audits, and enforce strict no-logs policies. Choosing well-vetted services ensures end-to-end encryption, safeguarding user interactions—especially those involving sensitive AI data—rather than risking exposure through untrustworthy free extensions.

To protect your privacy and maintain control over your data, it’s advisable to steer clear of dubious free VPN tools and opt for trusted, audited providers that prioritize user security and transparency.

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