Your Home IP Is AI’s Secret Weapon: The Rise of Residential Proxy Hijacking

AI companies and providers are locked in a virtual arms race for data collection. While most news about AI companies focuses on the dangers of data centers, they also have to contend with websites and other online data sources. Website resistance to AI companies is growing, and without the latest data, an AI company will not survive.

It’s not that websites are too guarded with their data. AI scrapers can easily overwhelm a website with data requests, causing it to go offline. According to the Museum Association, a short survey among institutions reveals their websites have been dealing with bots. These AI bots have been really aggressive, “in some cases overwhelming their systems and knocking them offline.”

A Workaround for Blocked AI Bots

Websites are taking proactive steps to avoid being taken offline by bots. Some outright block scraping bots to ensure only verified users can access their content.

But in an arms race of collecting data, AI companies are now using IP addresses from residential proxies to appear legitimate. According to Unite AI, “A residential proxy is the IP address of a broadband user, just like you or me, who is either selling their ‘safe’-looking location to a commercial company so that the company’s customers can piggyback on that IP to avoid blacklists…”

AI companies use thousands of residential proxies to appear like a regular user to a website. This process allows AI companies to scrape data without looking like a bot.

Some websites and other data sources use additional layers to block bots even with a legitimate-looking IP address: log-ins, advanced user analysis, and bot management tools are some of the tools a website could employ to prevent unauthorized scraping.

The Problem with Residential IP Addresses in Data Scraping

The rising demand for residential IP addresses is creating unintended consequences, especially for regular internet users. Companies offering residential proxy services do not sit on millions of IP addresses - they actually rely on residential users as part of their service.

Some residential users actively allow companies to use their IP address. They are often paid based on usage as they share their resources with these companies.

On the other hand, some residential users are unaware of this setup: their residential proxy IP addresses are being used without their knowledge. Google Cloud recently reported disrupting a large proxy network, calling the business “a 'gray market' that thrives on deception—hijacking consumer bandwidth to provide cover for global espionage and cybercrime. More must be done to address the risks of these technologies.”

Before the rise of AI, residential users’ privacy and security were compromised because illegal devices could be used for illegal connections and abuse. The additional demand of AI for proxy users, whether through legal or illegal means, exposed residential IP addresses to connection hijacking.

Beyond websites blocking AI bots, residential users must also secure their own connections. Keeping routers updated, locking down advanced settings, and avoiding compromised devices can reduce the risk of IP hijacking.