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Evading Residential Proxy Networks: Protecting Your Devices from Becoming a Tool for Criminals

Ic3 • March 12, 2026

The Federal Bureau of Investigation ( FBI ) is publishing this Public Service Announcement ( PSA ) to raise awareness of residential proxies, the risks they pose, and steps the public can take to safeguard their devices from becoming part of a residential proxy network. Cyber threat actors use residential proxies to facilitate illicit activities, while obfuscating their true identities and locations by routing internet traffic through and small business internet networks.

A residential proxy is an intermediary server between individuals and websites they visit to make their connections appear to originate elsewhere. Legitimate IP addresses assigned by an Internet Service Provider ( ISP ) to consumers' Internet of Things ( IoT ) 1 devices, such as TV streaming devices, digital picture frames, smartphones, tablets, and routers are used to route traffic. Once an internet-connected device is compromised, the device's IP address can be used by threat actors to mask their online illegal activity, making the consumer appear responsible.

A residential proxy is used to route users’ requests through another IoT device, typically located elsewhere in the world. When selecting an IP address, users can choose which country they would like the IP address from, down to the city and state. Doing so alters the users' IP address from the perspective of the website to that of the device the traffic was routed through.

Many individuals do not realize their internet connection could be used by someone else without their permission. Residential proxies obtain residential IP addresses from devices in two ways: The owner of the device provides consent, or the owner of the device does not provide consent and is unaware their IP address is being used.

Residential proxies are a standard tool criminals use to look like ordinary users online and can be used for the following purposes:

The FBI recommends individuals take the following precautions to protect themselves from becoming part of a residential proxy network:

The FBI recommends businesses take the following precautions to protect themselves from becoming part of a residential proxy network:

If you suspect you are a victim of a residential proxy service or your personal information has been compromised:

The full story

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FBI Warns of Rising Threat from Residential Proxy Networks The FBI has issued a Public Service Announcement regarding the dangers of residential proxy networks, which cybercriminals exploit to mask their identities and conduct illegal activities. These proxies utilize compromised Internet of Things (IoT) devices, smartphones, and routers to reroute internet traffic, making it appear as if it originates from legitimate residential IP addresses. The FBI highlights that both consumers and enterprises are at risk, with older devices being particularly vulnerable. In January 2026, a significant incident exposed nine million Android devices, illustrating the scope of the threat. Security firm Spur reported that 671 government entities, 263 energy organizations, and nearly 1,900 educational institutions are vulnerable to such attacks. The FBI recommends various protective measures for both individuals and businesses to mitigate these risks. 2 sources 72

Extracted Entities

MITRE ATT&CK (1)

T1090 - Proxy