We all understand that, proxies are of great help to surf the net anonymously. We do think that, we will be safe and our identity is hidden when we visit sites on internet. The use of proxy, creates a sense of safety and anonymity with many of us.
But unfortunately, this is not always true. Even though we know that anonymizers greatly assist to be anonymous while surfing, there are certain hidden dangers too which should not be over looked.
Generally, most (at least free) proxies do not support SSL data transfer i.e. when you send or receive data using a proxy, your data may be captured by another person on the same network without your knowledge. Hence, it is never advisable to go for transmitting important financial information like credit card or bank details, passwords over a proxy. Some times, even the proxy owner may log all your details which may lead you to trouble.
The risks of using a proxy should be understood clearly before using it for any kind of web activity.