Samsung has removed applications from its Galaxy Store that share users' internet connections with third parties through residential proxy networks, following new security research that revealed how these services operate. The investigation provides detailed insight into a largely hidden industry where apps installed on consumer devices effectively turn home networks into exit nodes for anonymous internet traffic.
Residential proxy networks function by distributing apps that request broad network permissions, then route traffic from paying customers through the devices of users who installed these applications. While some apps disclose this functionality in exchange for small rewards or premium features, many users remain unaware their internet connection is being shared with strangers who may be located anywhere in the world.
The security research demonstrates how these proxy networks create significant risks for unwitting participants. Traffic routed through residential IP addresses appears to originate from legitimate home users, making it difficult for security systems to detect malicious activity. This setup enables various threats including credential stuffing attacks, web scraping that violates terms of service, fraud schemes, and potentially illegal content access that could be traced back to the proxy host's IP address.
The impact extends beyond individual users to affect organizations whose employees might install these apps on personal devices used for work purposes. When corporate credentials or sensitive data traverse these compromised networks, the exposure risk multiplies. Internet service providers may also flag or throttle accounts showing unusual traffic patterns, and users could face legal complications if their connection is used for criminal activities.
Security teams should implement mobile device management policies that prevent installation of unauthorized applications, particularly those requesting network-level permissions. Individual users should audit installed apps, remove any that offer payment for bandwidth sharing, and review permission settings to revoke unnecessary network access. Organizations should educate employees about the risks of residential proxy apps and consider network monitoring to detect unusual traffic patterns that might indicate compromised devices on corporate networks.
Source: https://techcrunch.com/2026/08/03/samsung-bans-smart-tv-apps-that-share-users-internet-connections-with-strangers/