The FBI has warned that hackers are using residential proxy malware to hijack smart home devices and route illicit internet traffic [1].
This security threat is significant because it allows criminals to mask their digital footprints by using a homeowner's IP address. By routing traffic through legitimate residential connections, hackers can bypass security filters and conduct illegal activities while remaining undetected by traditional monitoring tools.
In a public service announcement released March 12, 2026 [1], the FBI said that everyday devices in the home, including smart TVs, streaming sticks, phones, and routers, can be hijacked without the owner realizing it.
Cybersecurity analysts said the malware, known as residential proxy software, can turn a device into a hidden gateway for internet traffic [2]. This process effectively transforms a smart doorbell or tablet into a node in a larger network controlled by bad actors [2].
Once a device is compromised, the hackers use it as a proxy to hide their own location and identity [3]. This allows them to perform malicious actions while the traffic appears to originate from a trusted residential home [3].
Because these devices often lack robust built-in security, they are frequent targets for such software [1]. The FBI's warning emphasizes that these intrusions happen silently, meaning a device may continue to function normally while simultaneously serving as a tool for cybercriminals [1].
“The FBI is warning that everyday devices in your home... can be quietly hijacked and used by criminals”
The rise of residential proxy malware highlights a critical vulnerability in the Internet of Things (IoT) ecosystem. As consumers integrate more connected devices into their homes, the attack surface for cybercriminals expands. Because these hijacked devices provide hackers with legitimate residential IP addresses, it becomes significantly harder for law enforcement and security firms to track the origin of cyberattacks, effectively weaponizing the trust associated with home internet connections.
