Squid is one of the most popular proxy/cache server, and there are some security issues that should be taken into account. Squid's default configuration file denies all users requests. However the Debian package allows access from 'localhost', you just need to configure your browser properly. You should configure Squid to allow access to trusted users, hosts or networks defining an Access Control List on /etc/squid/squid.conf, see the http://www.deckle.co.za/squid-users-guide/Main_Page for more information about defining ACLs rules. Notice that Debian provides a minimum configuration for Squid that will prevent anything, except from localhost to connect to your proxy server (which will run in the default port 3128). You will need to customize your /etc/squid/squid.conf as needed.

The recommended minimum configuration (provided with the package) is shown below:

acl all src 0.0.0.0/0.0.0.0
acl manager proto cache_object
acl localhost src 127.0.0.1/255.255.255.255
acl SSL_ports port 443 563
acl Safe_ports port 80          # http
acl Safe_ports port 21          # ftp
acl Safe_ports port 443 563     # https, snews
acl Safe_ports port 70          # gopher
acl Safe_ports port 210         # wais
acl Safe_ports port 1025-65535  # unregistered ports
acl Safe_ports port 280         # http-mgmt
acl Safe_ports port 488         # gss-http
acl Safe_ports port 591         # filemaker
acl Safe_ports port 777         # multiling http
acl Safe_ports port 901         # SWAT
acl purge method PURGE
acl CONNECT method CONNECT
(...)
# Only allow cachemgr access from localhost
http_access allow manager localhost
http_access deny manager
# Only allow purge requests from localhost
http_access allow purge localhost
http_access deny purge
# Deny requests to unknown ports
http_access deny !Safe_ports
# Deny CONNECT to other than SSL ports
http_access deny CONNECT !SSL_ports
#
# INSERT YOUR OWN RULE(S) HERE TO ALLOW ACCESS FROM YOUR CLIENTS
#
http_access allow localhost
# And finally deny all other access to this proxy
http_access deny all
#Default:
# icp_access deny all
#
#Allow ICP queries from everyone
icp_access allow all

You should also configure Squid based on your system resources, including cache memory (option cache_mem), location of the cached files and the amount of space they will take up on disk (option cache_dir).

Notice that, if not properly configured, someone may relay a mail message through Squid, since the HTTP and SMTP protocols are designed similarly. Squid's default configuration file denies access to port 25. If you wish to allow connections to port 25 just add it to Safe_ports lists. However, this is NOT recommended.

Setting and configuring the proxy/cache server properly is only part of keeping your site secure. Another necessary task is to analyze Squid's logs to assure that all things are working as they should be working. There are some packages in Debian GNU/Linux that can help an administrator to do this. The following packages are available in Debian 3.0 and Debian 3.1 (sarge):

When using Squid in Accelerator Mode it acts as a web server too. Turning on this option increases code complexity, making it less reliable. By default Squid is not configured to act as a web server, so you don't need to worry about this. Note that if you want to use this feature be sure that it is really necessary. To find more information about Accelerator Mode on Squid see the http://www.deckle.co.za/squid-users-guide/Accelerator_Mode