The FBI is warning that everyday devices in your home – from smart TVs and streaming sticks to phones and routers – can be quietly hijacked and used by criminals without you realizing it. In a public service announcement released March 12, 2026, the bureau says cybercriminals are increasingly building “residential proxy networks” that route their internet traffic through ordinary households to hide their identities and locations.
In practice, that means illegal activity such as phishing, fraud, and hacking attempts could appear to originate from your home internet connection, even though you had nothing to do with it. The FBI says many people have no idea their devices have been recruited into these networks until something goes wrong.
What is a “residential proxy”?
A residential proxy is essentially a relay point on the internet. Instead of connecting to a website directly, someone routes their traffic through another person’s device so the activity appears to come from that location.
Normally, your internet provider assigns your home a unique IP address. Residential proxy services allow someone to borrow that IP address so their activity looks like it’s coming from a real household in a specific city or country.
Cybercriminals like this approach because traffic coming from a legitimate residential connection makes illegal activity look like normal consumer internet traffic. Attackers use them to distribute malware, operate phishing campaigns, create fake social media accounts, and bypass security protections designed to block suspicious IP addresses. They can also rotate through thousands of residential IP addresses to launch large-scale password-guessing attacks or scrape websites without getting blocked.
How your device gets pulled into these networks
There are two main ways devices become part of a residential proxy network: people agree to it – often without realizing the consequences – or criminals install it without permission. One of the most common methods involves mobile apps that include hidden proxy software development kits (SDKs). Developers are sometimes paid to include these tools in their apps, which quietly route proxy traffic through a person’s phone or tablet once the app is installed.
Another common tactic involves free VPN apps. Some free VPN providers bury language in their terms of service that allows them to use customers’ internet connections as proxy nodes.
Devices can also be compromised directly. The FBI says malware hidden in pirated software, free streaming apps, or unofficial app stores can infect devices and convert them into proxy relays. Internet-connected devices – including streaming boxes, digital picture frames, projectors, or routers – are particularly vulnerable if they run outdated software.
Some services even market the idea as “passive income.” They promise people small payments in exchange for sharing their internet bandwidth, without clearly explaining that criminals may use that connection for fraud or cyberattacks.
How to protect your devices
The FBI says that protecting yourself largely comes down to avoiding the most common infection routes. The bureau advises people to be skeptical of free streaming devices or apps that promise access to pirated sports, movies, or TV shows, which frequently contain hidden malware. Free VPN apps also deserve scrutiny – if the service is free, there is a good chance the company is monetizing your connection in some other way.
Using official app stores, keeping devices updated, and avoiding pirated software significantly reduce the chances of being pulled into a proxy network. The FBI also recommends regularly checking what devices are connected to your home network and watching for unusual internet activity.
Another overlooked risk involves cheap internet-connected devices that may arrive with malware already installed. This is a good reason to stick with known brands, rather than just buying the cheapest option on Amazon or Temu.
What to do if you suspect your network is compromised
If you think your device or internet connection may have been compromised, the FBI recommends reporting the incident through the agency’s Internet Crime Complaint Center at ic3.gov.
While residential proxy networks may sound technical, the underlying issue is simple: devices connected to the internet are valuable infrastructure for criminals. The more connected gadgets you add to your home, the larger the potential network attackers can quietly exploit.
Read next: Your TV Is Watching You Back – And Selling What It Learns
[Image credit: FBI.gov]
