Smart home devices and gadgets are now commonplace in many modern homes. Security cameras watch front doors, streaming boxes power TVs, and connected appliances constantly exchange data over the internet. Most people worry about companies collecting too much information, but a growing cybersecurity threat suggests consumers may have a much bigger problem to worry about.
Security researchers are warning that some internet-connected devices can contain hidden software backdoors or severe security flaws that allow outsiders to access home networks. In some cases, these devices can effectively turn a household internet connection into a tool for cybercriminals without the owner’s knowledge.

How compromised smart devices are being used
Many of the affected devices are linked to what are known as residential proxy networks. These services route internet traffic through real household connections, making online activity appear as if it originates from an ordinary home rather than a data center, VPN service, or suspicious network.
Residential proxies have legitimate uses, such as testing websites or advertisements from different regions. The problem begins when consumers unknowingly become part of these networks.
According to a recent Wall Street Journal investigation, some digital picture frames and TV streaming boxes appeared to contain software that automatically connected them to residential proxy services. Security experts cited in the report believe certain manufacturers may be paid to include this software before devices reach consumers.
Once connected, the device can quietly relay internet traffic for third parties. Researchers monitoring several test devices observed activity linked to gambling websites, cryptocurrency services, adult content, and attempts to access online accounts.
Why this is a problem for consumers
Allowing strangers to route traffic through a home internet connection creates both privacy and security concerns. Criminal activity conducted through a residential proxy can appear to originate from an unsuspecting household. Security researchers say these networks have been linked to fraud, ticket scalping, ad fraud, and account abuse.

The threat can become even more serious when attackers gain direct control of vulnerable devices. Researchers have found evidence of hackers repeatedly attempting to access internet-connected gadgets, sometimes turning them into part of massive botnets used to launch distributed denial-of-service attacks (DDoS). Industry estimates suggest tens of millions, and potentially hundreds of millions, of devices worldwide could be vulnerable.
What you can do to protect yourself
Consumers can reduce their risk by buying devices from reputable manufacturers, keeping firmware updated, and avoiding unusually cheap products from unknown brands. Experts also recommend avoiding unvetted apps and sideloaded software, which can introduce malware to your smart devices. Placing smart home devices on a separate guest network can help contain the damage if a device is compromised and prevent attackers from gaining access to phones, laptops, and other sensitive devices on the same network.