Residential proxy detection route internet traffic using devices such as mobile phones and laptops, essentially masking web activity. While this technique has many legitimate uses, it also enables fraudsters to obfuscate their activities. These obfuscated transactions often involve a number of fraudulent activities including scalping, reselling counterfeit goods and ticketing fraud. Moreover, the growth of residential proxy networks exposes millions of innocent users to cyber threats and legal repercussions without their knowledge or consent. Recent malware attacks such as Camaro Dragon highlight how easy it is for cybercriminals to form a residential proxy network by injecting malware into unsuspecting devices and exploiting them as a botnet.

Residential Proxy Detection: Techniques and Tools

Unlike data center IPs that can be detected easily, it is more difficult to spot the true source of residential connections. This makes residential proxies the preferred tool of bad actors for scraping websites, creating duplicate accounts, bypassing geographic filters, solving CAPTCHAs, engaging in ad fraud and submitting fake data through lead generation funnels.

Residential proxy detection is essential for businesses looking to maintain network security and protect their customers. By detecting and blocking these connections, companies can reduce the impact of scalpers on limited-edition products, level the playing field for genuine consumers and prevent other forms of online fraud.

The utilisation of residential proxies without the consent of its owner is illegal and can expose innocent users to various security risks including identity theft, unauthorized access to websites, legal repercussions and exposure to malicious content. It is therefore crucial for businesses to implement robust proxies detection strategies that can identify suspicious connections that are not recognised by other ML models or heuristics.