In a nutshell, a representative from VPN4Life claimed they were about to offer a fast, 128 bit encrypted, fully unlimited and anonymous PPTP service – all for just a one-off payment of $50.00. It seemed to good to be true and in our report we said as much, warning people away from the service.

Nevertheless, since the offer was so cheap, some people decided to take the chance. After handing their cash over via PayPal, customers did not receive a PPTP VPN service, but an executable file named ‘VPN 4 Life PC.exe’. Sadly, this was neither new nor original code, but a piece of software designed to protect people’s privacy when using public WiFi networks. The ad-supported software, called Hotspot Shield, is already available for free from AnchorFree.com. The scammers at VPN4Life simply renamed the file to make it look like their own work.

Confirmation that the two files are identical can be obtained by checking the MD5 checksum, which can be viewed as a type of digital fingerprint. The results for each file are identical.

4b34079841d43799e5d0849ac16feb61 HSS-1.10-install-anchorfree-76-conduit.exe
4b34079841d43799e5d0849ac16feb61 VPN 4 Life PC.exe

The VPN4Life site now has a note on it stating that if anyone is unhappy with the service, that’s too bad. “No refunds will be given if you are dissatisfied with our services,” says the site’s recently-added Terms and Conditions. However, according to reports from purchasers, a complaint to PayPal seems to do the trick.

Too good to be true? You bet.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

A good VPN service offering unlimited data transfers and healthy speeds usually costs around $10 to $20 per month, so when a new service launched this week, offering all this for a one-off payment of $29.00 (introductory price), it warranted further investigation.

According to their website, the people behind VPN4Life are entrepreneurs “striving to free the world from ISP monitoring, government restrictions, and capitalism’s growing influence on the Internet, one account at a time.” Offering unlimited bandwidth and 128 bit encryption through servers in the UK, Germany and Singapore with a 99.7% uptime guarantee, it certainly looked attractive. The official site carries little detail, so we contacted VPN4Life and asked a number of questions.

First of all, the $29.00 payment looked like an introductory offer, so how much would the service cost normally? VPN4Life told us the 20mb/sec fully BitTorrent compatible unlimited bandwdith PPTP service would cost “between $45 and $50″, while confirming that the payment is indeed a one-off for a lifetime subscription.

Since there is no privacy policy on the site we asked a few questions along those lines. VPN4Life told us that they do not log what any of their customers do. We asked about the lack of a displayed Terms of Service and their response was it wasn’t needed. “Customer pays, we provide VPN,” they told us, while assuring that they would never divulge any customer information to 3rd parties, since they have nothing stored to give them.

$50.00 for life sounds an amazing offer – but is this super-low price sustainable? The immediate difficulty with a lifetime subscription is that once off the ground, the company is then responsible for providing a service to thousands of members forever who paid very little in the first place. More and more new signups are then required to pay for the spiraling hardware and bandwidth costs and since VPN4Life offer unlimited bandwidth, it’s difficult to see how the whole operation can be sustained.

As far as the real costs of bandwidth go, we spoke with Bruce at VPN provider Perfect Privacy who told us: “There is a reason why we currently charge about EUR 10.00 to EUR 15.00/month (depending if you pay for 3 or 24 months in advance), namely that 1 mbps of dedicated bandwidth in the West costs about EUR 10.00 to US$ 15.00 at the very minimum. In Asia it costs about US$ 80.00/mbps. That’s US$ 1,500 (U.S/Europe) to US$ 8,000 (Asia) every month just for 100 mbps.”

In the face of these figures, the VPN4Life offer starts to look vulnerable indeed. “How are they going to pay for their ever increasing bandwidth needs if the number of paying members becomes ever smaller in relation to the total number of members?” asked Bruce, rhetorically. He has a very, very good point. It looks impossible, much like the classic pyramid scheme.

Some might feel that at $50.00 this service is worth a try but I strongly believe that if something looks too good to be true, then it probably is. Time will tell, but I won’t be changing provider, that’s certain.

Update: Important – Anyone considering purchasing should read here first

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.