When downloading copyrighted content using peer-to-peer file sharing, people are at risk because their IP address is visible.
Software at the ISP scans the network for people downloading copyrighted material. It can match their IP to their name and address.
I protect myself from lawyers and their cease and desist letters by using BTGuard BitTorrent Proxy, a so-called anonymous proxy service.
You need not disclose your name to test it. You simply choose a username and password and select a subscription period.
Next, you download the preconfigured µTorrent client (it has all settings for anonymity in place) and enter the login credentials.
Your computer now routes P2P traffic through their server before sending it to you; your IP address remains invisible.
BTGuard supports programs that use a SOCKS5 proxy; it cannot be used for web surfing because no popular browser supports this protocol.
Transmissions reach 80% of the achievable download speed. The encryption option can stay off, the IP is safely hidden without.
The company, Netcrawled LLC, is incorporated in the United States. They say: "No records of usage are stored."
The service is 30% cheaper than a VPN and they offer 25% discount for the yearly plan. To get this deal, select 12 months on the order page.
Established and fast proxy service for in-private torrenting. I prefer it over a VPN because I only need privacy for file sharing. It's well suited for this task.
BTGuard Review by Harald Schendera, 2015. – What is an anonymous proxy and how can it be used with multiple relays?