Why your internet connection is more interesting than you think
Safe devices
Your home network is your responsibility—and if you don’t know what’s happening on your connection, you run the risk of being held accountable for the activities of others.
A healthy skepticism toward tools that promise too much and explain too little isn’t paranoia—it’s digital self-defense.
Why Your Internet Connection Is More Interesting Than You Think
Imagine you’re renting out your car—without even knowing it. Someone picks it up at night, drives it somewhere, brings it back, and you don’t realize it until the police ring your doorbell. Sound absurd? That’s exactly what happens every day with home internet connections—and most of the people affected have no idea.
The reason: so-called residential proxies. A clunky term for a simple but far-reaching principle.
What are residential proxies?
Residential proxies are internet connections where data traffic is routed through the IP address of a private home connection. To external services, the data traffic appears to come directly from an ordinary private individual with a regular internet connection.
Such proxies are often provided via software, apps, or browser extensions, but also through inexpensive electronic gadgets with an internet connection, such as smart photo frames, tablets, or even TV-boxes. In some cases, a private individual—knowingly or unknowingly—makes their own internet connection available as part of a proxy network. Their connection is then used by third parties to access websites or use online services.
Residential proxies are often advertised as being:
- are less likely to be blocked than traditional data center proxies,
- enable “anonymous” browsing,
- can bypass geographic restrictions.
At first glance, VPNs and residential proxies appear similar, but there are important technical and legal differences:
VPN (Virtual Private Network)
With a VPN, all internet traffic is encrypted and routed through a central VPN server. The IP address visible to the outside world usually belongs to the VPN provider (e.g., a data center). The user does not share their own internet connection with others.
Residential Proxy
With residential proxies, data traffic is routed through real private connections. These connections belong to other private individuals, whose IP address remains visible to the outside world. In some models, your own connection can also become part of such a network.
And why are residential proxies a problem?
The internet identifies you based on your IP address. This address reveals who you are—or at least where your connection originates. Website operators, streaming services, and security systems use this information to detect and block suspicious activity.
This is exactly where residential proxies come in. Instead of data traffic passing through an obvious data center, it is routed through real private connections—that is, through your network, your neighbor’s network, or your coworker’s network. To the other end, everything looks like a perfectly normal person browsing the web.
That sounds harmless. But it isn’t.
Here’s a concrete example: You install a free browser extension that promises to automatically find the lowest price when you shop online. In the fine print—which hardly anyone reads—it says that in return, the app uses your internet connection “to improve the service.” What that means: While you’re sleeping, data traffic from unknown sources is running through your router. Maybe it’s someone buying tickets that were actually meant for fans. Maybe it’s someone trying out login credentials. Maybe something worse.
How it works technically – explained simply
You don’t have to be an IT specialist to understand the principle:
A standard VPN is like a company car: You drive it, but the car belongs to the company. From the outside, you see the company’s license plate—not yours.
A residential proxy flips the whole thing around: Now your private car is someone else’s company car. Your license plate, your responsibility—but you’re not behind the wheel.
Technically, this is done via apps, browser plugins, or programs that run in the background as part of a distributed network. Some well-known services even promise a small payment—“Earn money while you sleep, simply by sharing your bandwidth.” Sounds like a fair deal. It rarely is.
What this means for you – in the worst-case scenario
In Switzerland—as in most countries—the rule is: As the owner of an internet connection, you are responsible for what happens over it. This is comparable to owner liability for a car.
If your connection is misused for unauthorized activities, you are the first point of contact for investigations. In case of doubt, you must prove that it wasn’t you—not the other way around.
Precisely because residential proxies are based on real home internet connections, there are specific risks:
Misuse of your own internet connection
If your own connection is used as a residential proxy, third parties can carry out activities through it that you have no control over—such as automated access, bypassing blocks, or other unwanted uses.
Legal and contractual responsibility
As the owner of an internet connection, you are generally responsible for what happens through that connection. Even if actions are technically carried out by third parties, the connection owner may initially be perceived as the source.
Loss of reputation and trust
IP addresses used for malicious activities may end up on blocklists. This can result in legitimate services becoming inaccessible or accounts being restricted.
Lack of transparency
Many residential proxy services do not adequately explain exactly how your connection is used, what data is transmitted, and who ultimately has access.
Responsibility for the Internet connection
The general rule for internet connections is that private individuals are responsible for ensuring their connection is not used for unauthorized or prohibited purposes. This also includes taking appropriate measures to prevent misuse.
This includes, for example:
- the responsible use of software and services,
- securing end devices and routers,
- reviewing terms of use and contract clauses.
In particular, services that promise to “make money on the side” or “provide bandwidth discreetly” should be viewed with skepticism.
Tips: What you can do
The good news: You can protect yourself. And you don’t need any prior technical knowledge.
- Always be wary of “free” offers. If a service costs nothing, you’re often paying with something else—for example, your bandwidth. Ask yourself: What does the provider get from me? If the answer isn’t clear, stay away from it. But even proxy services you have to pay for are always a risk.
- Read the fine print (if there is any)—at least skim through it. Look for terms like “bandwidth sharing,” “traffic routing,” or “network participation” in the terms of service. These phrases may indicate that your connection will be shared later on.
- Protect your router by changing the default password (yes, you need to get rid of “admin/admin”). Keep the firmware up to date – your router manufacturer regularly provides security updates. Disable features you don’t recognize or need.
- Be cautious when buying a network or Wi-Fi-enabled device that seems “too good to be true.” Increasingly, such devices come pre-configured with features that make your connection accessible to third parties.
- Install only trusted browser extensions—less is more. Every extension you install theoretically has access to your browser traffic. Choose well-known providers and check in your browser what permissions an extension requires. Does a weather plugin really need access to every website you visit?
- Try to figure out why your router’s LEDs are constantly flashing rapidly or why there’s network activity in your Task Manager even though you’re not actively browsing the internet right now. Are there any running processes in the Task Manager that look unfamiliar to you?
- Use a VPN—but the right one. A reputable VPN service protects your traffic but doesn’t share your connection with others. Look for providers with a clear privacy policy, an audited no-logs promise, and a transparent business structure. Free VPNs—as you now know—often fund themselves differently.
