When activating software and services, it encrypts your traffic and sends it through a tunnel to the HotSpot Shield data center, then sends it to the Internet, just like a company's VPN server is still perform. HotSpot Shield even has mobile VPN settings (no download required) to protect your web surfing on iPhone phones with the bundled Cisco VPN client software provided by Apple.
By using such a service, you can create a secure connection. Your traffic will then be sent as unencrypted to the final destination on the Internet, as if you were browsing from a laptop plugged directly into the corporate data center.
This method does not guarantee absolute security because the encryption tunnel is not able to control all the ways you access the web. Even so, it is definitely more secure than a non-VPN setting.
Summary of safe Wi-Fi access
Can be summarized as follows:
1. If your company has a VPN that you can use to surf the web, use it.
2. If you can't use a corporate VPN, use HotSpot Shield instead
3. Don't equate to Wi-Fi Internet subscription for a fee with secure browsing.
4. On unencrypted wireless networks, anyone can see where you are visiting (except on HTTPS websites).
5. On encrypted wireless networks, anyone with a password can see where you are visiting (maybe some people in your home or maybe hundreds of people at the airport).