Our new investigative report reveals how criminals and foreign adversaries — including state-sponsored hackers from Russia, China, and Iran — are secretly hijacking millions of Americans' home Internet connections to commit fraud, launch cyberattacks, and evade law enforcement. Your smart doorbell, streaming device, or free VPN app may already be part of their network.
U.S. Internet connections are collected annually for use in residential proxy networks — often without the knowledge of the device owner.
Of IP connections examined across seven residential proxy providers had already been flagged for fraud or criminal activity — they're being used repeatedly.
Estimated annual global losses driven by crimes enabled by illicit residential proxy networks, including fraud, credential theft, and state-sponsored attacks.
In fraudulent unemployment claims filed during the COVID-19 pandemic using hijacked U.S. residential IP connections from the 911 S5 botnet operation alone.
Millions of Americans have unknowingly handed criminals and foreign governments access to their home networks — through apps they downloaded, trusted, and use every day.
Consider Honeygain — a popular app marketed to students that pays users to share their unused Internet bandwidth. Investigators signed up and monitored the traffic. They found it routing connections through entities in China and Russia, including a bank sanctioned by the U.S. Treasury Department. Users earn roughly $0.10 per gigabyte. Most have no idea what their connection is being used for. And if a crime is traced back to that connection, investigators don't find the criminal — they find the student.
Free VPNs and "earn money with your bandwidth" apps silently enroll your device in criminal networks. The FBI has specifically warned about these.
Off-brand Android TV boxes frequently come pre-infected from the factory. The FBI has specifically warned about these devices — once plugged in, many contact servers in China and accept remote commands.
Devices more than 5 years old that no longer get security updates are open doors. Your router controls access to every device in your home.
of Americans think they have 10 or less Internet-connected devices in their home
of Americans think they have 17 or less Internet-connected devices in their home
0 /month
8 /month
Risky Behaviors - Yes
Risky Behaviors - No
0 /month
8 /month
Share IP Connection – Yes
Risky Behaviors - No
Residential proxy networks are now foundational infrastructure for state-sponsored attacks on the United States. China's Volt Typhoon used compromised American home routers to pre-position inside U.S. water, energy, and transportation systems. When the FBI dismantled the network, it was rebuilt within weeks.
The United States has no coherent legal framework to address this threat. Jurisdiction is split across FCC, FTC, DOJ, CISA, and Commerce — with no agency accountable. The Netherlands opened an investigation into IP leasing without consent in early 2026. The U.S. has no comparable standard.
It’s time for the United States to take action.