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Novel attack against virtually all VPN apps neuters their entire purpose
(arstechnica.com)
This is a most excellent place for technology news and articles.
The trust in the unknown systems of the VPN provider may still be better than the known practices of your local ISP/government though. You shouldn't necessarily rely on it too heavily but it's good to have the option.
While those are valid concerns, it's not really hard to see why people use VPNs. Just look at how companied and countries abuse the internet, abuse us.