What does a correctly figured proxy from a paid proxy service do?
When a paid proxy service discovers a correctly configured proxy service the service will actually cause you to appear on the internet as just another user. However, in reality there are actually thousands of people that can be using one proxy at any given time.
It is possible to be tracked directly back to the proxy server that you are using. However, your information will only go as far back to the server that you are using and no more. This is actually a great thing for people that are trying to steer clear of any criminal activity that occurs over the internet.