Residential Proxy IP networks are networks that utilize the IP addresses of consumers who sign up for any number of apps that pay them to share their bandwidth. Those apps become gateways for other clients of the app provider. To a corporate network administrator, a residential proxy IP address looks just like a legitimate residential address.
How do they work? Residential proxy networks route traffic through an intermediary server, which can be any device capable of receiving and sending internet traffic from one device or website to another.
Where do these networks obtain legitimate residential IP addresses for their networks? There are multiple ways. In some cases, residential proxy networks provide an SDK to app developers who want to monetize their apps. In some cases, the network convinces the provider of a browser extension to include their code. And, these networks can leverage a botnet to obtain residential IPs.
The popularity of residential proxies among cybercriminals stems from their ability to imitate the digital footprint of ordinary Internet users. This camouflage facilitates activities ranging from fraud to money laundering, under the radar of usual security protocols
