What Is a VPN, and Does Your Company Need One? (2024)

What Is a VPN, and Does Your Company Need One? (1)

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A VPN is an essential tool for all small businesses, and every company should consider adding one to their tech stack.

By:

Emily Heaslip , Contributor

What Is a VPN, and Does Your Company Need One? (2)

VPN stands for "virtual private network." This technology creates a private network connection between your computer, smartphone, or tablet and a VPN server. All the data transmitted between your device and the VPN server is encrypted, ensuring that it remains private and protected from unauthorized access.

A VPN is a core component of keeping your online activity private and improving your data security. Most experts recommend using a VPN to make it difficult for hackers and cyber criminals to intercept and access your data.

How do VPNs work?

A VPN is a simple but effective way to browse the internet without cookies or malicious bots tracking your every move.

First, some background: When you use the internet, your internet service provider gives you a unique IP address. Anything you do look at — websites, videos, social media, etc. — is linked to that unique IP address. That means your internet service provider can see all the websites you visit.

A VPN does two things. First, it encrypts your data at the source, meaning any search terms or websites you submit on your device are protected. The VPN server sends that data via “tunnels,” which makes sure no outside party can see what data you’re sharing.

The second thing a VPN does is anonymize that source of your data. The VPN “masks” your IP address by replacing it with the IP address of the VPN server. As a result, your online activities appear to originate from the location of the VPN server, providing you with anonymity and privacy.

“Your traffic still passes through your ISP, but your ISP can no longer read it or see its final destination. The websites you visit can no longer see your original IP address, only the IP address of the VPN server, which is shared by many other users and changes regularly,” explained ExpressVPN.

[Read more: Newly Remote Workforce? Take These 4 Cybersecurity Steps Now]

A VPN is a simple but effective way to browse the internet without cookies or malicious bots tracking your every move.

What are the benefits of using a VPN?

Primarily, a VPN allows employees to work remotely without compromising the security of your company's data.

A VPN is a core component of cybersecurity. The encryption a VPN provides prevents hackers from stealing valuable data, such as customer information, employee records, or financial data. “A VPN is essential for your small business if you want to protect your and your clients’ data and avoid security threats that could cripple your business,” wrote NordVPN.

Additionally, a VPN makes it safe for your employees to connect to the company’s internal network from anywhere. If you have a hybrid or remote workforce — or employees who travel frequently — a VPN can secure connections via public WiFi, such as those at coffee shops, public libraries, or airports.

VPNs are user-friendly and affordable, too. Rather than use expensive remote access servers, your small business can use a VPN to browse the internet anonymously by concealing your real IP address and providing you with a virtual one from a different location.

[Read more: 7 Tools That Will Help You Work From Home]

How to choose a VPN

There are many different VPN providers available. As you sort through the options, look for providers that have had a recent, published back-end security audit, ideally carried out by a third party. Check to see what the VPN’s privacy policy says: clear and easy-to-read terms of service and privacy policies can help give you confidence that the VPN isn’t collecting your data.

Then, look at industry guides. Wirecutter, CNET, PCMag, and The Verge all offer their take on the best VPNs for individuals and businesses. Depending on your budget and the number of users, you should be able to find a vendor who meets your needs.

Keep in mind that a VPN is just one aspect of cybersecurity. Adding a VPN will not make your business completely immune to all threats. Remind your team to exercise caution online and use other security measures, such as keeping devices updated and using strong, unique passwords.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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What Is a VPN, and Does Your Company Need One? (3)

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Published

What Is a VPN, and Does Your Company Need One? (2024)

FAQs

What Is a VPN, and Does Your Company Need One? ›

A business VPN allows employees to securely access a company's internal networks, or intranet, safely and can be used to create a unique shared network between employees and offices in multiple locations. The goal of a business VPN is to prevent sensitive company data from being exposed to the internet.

Do I need a VPN for my company? ›

The encryption a VPN provides prevents hackers from stealing valuable data, such as customer information, employee records, or financial data. “A VPN is essential for your small business if you want to protect your and your clients' data and avoid security threats that could cripple your business,” wrote NordVPN.

Why would a company use a VPN? ›

VPNs can securely connect a user to a company's internal network or to the public Internet. Businesses typically use a VPN to give remote employees access to internal applications and data, or to create a single shared network between multiple office locations.

Can my company see what I'm doing on VPN? ›

The short answer is yes – when you use your work computer to connect to a corporate VPN your employer can usually monitor your activity in the same way as for any computer in the office network. This includes (but is not limited to): Any applications you use. Files you access.

What is one benefit to the company of using a VPN? ›

In most situations, employees and others using your internet connection will not be throttled based on their internet usage, but using a VPN allows companies to conceal their data transmissions and eliminate the possibility altogether.

Can company track you without VPN? ›

Long answer: A VPN acts as a shield that makes it very hard to harm and/or track you online. Whether it's on your company computer or your own device connected to a company network without a VPN, the employer can potentially see what websites you visit, when you visit them, and for how long.

Do companies block VPN? ›

Sometimes employers or school administrators do not want employees or students accessing certain sites while at work or school, so they ban the use of VPNs on the business's or school's network.

Can you be tracked if you use VPN? ›

You can't be tracked using a VPN because it encrypts your data. As a result, your ISP or bad actors can't get any information out of your traffic. They only see the VPN server's IP address (e.g. if you're connected to a US server, the US IP address is visible), while your real IP and online activities stay hidden.

Do most companies use a VPN? ›

In fact, our research found that 47% of companies let unmanaged devices access their resources, despite the fact that 79% have VPN. So while Zero Trust and VPN can coexist, the one can't provide security for the other.

What is the main reason for a VPN? ›

A VPN, which stands for virtual private network, protects its users by encrypting their data and masking their IP addresses. This hides their browsing activity, identity, and location, allowing for greater privacy and autonomy.

Can my employer see my phone activity? ›

Employers are within their rights to track employee phone usage for business purposes. This might include tracking work-related calls and texts, monitoring internet usage, or even using GPS to track employee location. However, there are some limits to what employers can do.

Can my employer see everything on my computer? ›

If you're on your employer's network, your employer can monitor your activity on the Internet. Some employers have web filters that block access to certain websites—and this applies to all devices on that network, including personal cell phones, iPads, and computers.

Is there a downside to VPN? ›

Security and trust concerns

VPN servers can also become targets for cyberattacks, especially if they are not properly maintained or lack security updates. A compromised VPN server exposes users' data and potentially provides unauthorized access to attackers.

Why does my company use a VPN? ›

A VPN makes an internet connection more secure and offers both privacy and anonymity online. Organizations, governments and businesses of all sizes use VPNs to secure remote connections to the internet for protection against data interception.

When should a VPN be used? ›

You should use a Virtual Private Network (VPN) whenever you're online. By doing so, you make sure that your data and privacy are protected. Without a VPN, your every action online may be monitored and taken advantage of.

Is it unnecessary to have a VPN? ›

It's a disturbing violation of privacy that happens more often than you might expect—but it's one that a VPN can help prevent. By encrypting the traffic that passes from your device to the web and back, VPNs thwart these invasive attacks by rendering that data unreadable (and useless).

Is it OK to not have a VPN? ›

Unprotected traffic may lay the breeding ground for potential hacking. A VPN makes it more difficult for hackers to intercept your online traffic and steal your sensitive data or identity. This is especially important if you conduct sensitive transactions or handle personal information at home.

What is the difference between a company VPN and a personal VPN? ›

Personal VPNs commonly use shared IP addresses, meaning multiple users share the same IP to access the internet. Business VPNs often offer dedicated IP addresses, providing higher privacy and security for business-related activities.

Is VPN needed in the office? ›

Do you need a VPN at work? Yes, a VPN at work is necessary. It is an extra layer of security online that encrypts your browsing traffic. A VPN keeps company secrets inside the network, makes working from home safe, and protects your online activities from snoopers.

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