How to stop cybercriminals from tapping into home networks

This piece is sponsored by Midco.

It often starts with something simple: a new streaming box, a free app or a quick download to access content.

There’s no warning. No obvious sign anything is wrong.

But behind the scenes, that one decision can quietly open the door to your home network, allowing cybercriminals to use it for their own activity.

In most cases, homeowners don’t even realize it’s happening.

Through a vulnerability in a connected device, a household can unknowingly become part of a residential proxy network — a system that cybercriminals use to hide their identity online.

The threat is real enough that the FBI recently issued a public service announcement warning consumers and outlining steps to protect themselves.

“It really comes down to using software or hardware — network-connected devices — that aren’t coming from a trusted source,” said Bill Chatwell, senior vice president of technology at Midco.

How it starts

One increasingly common scenario begins with a new purchase: a video streaming box bought online or at a big-box retailer.

While the device itself is legal, the free software used to stream sports or movies may not be.

“In some cases, consumers don’t realize they’re downloading pirated or malicious software,” Chatwell said. “It’s a double whammy. They may be violating copyright laws, and they’re also introducing malware into their home network.”

Other risks include free VPN services, outdated operating systems and low-cost or off-brand connected devices.

“It’s the old adage: If it’s too good to be true, it probably is,” Chatwell said. “And if a product is free, it’s typically not. You’re the product.”

From there, residential proxy networks allow cybercriminals to route internet traffic through real residential IP addresses, making their activity appear legitimate.

That makes it significantly harder for websites, platforms and security systems to detect or block suspicious behavior.

According to Midco, once a device is compromised, cybercriminals can use that connection to:

• Mask their identity and location.
• Bypass security protections.
• Carry out illegal or fraudulent activity.

Because the traffic appears to come from a real home network, it can be tied back to the homeowner’s IP address, even if they have no idea it’s happening.

“It can be as simple as a hacker experimenting or more organized efforts driven by profit or even nation-state activity,” Chatwell said.

The risks extend beyond anonymity.

Compromised networks can experience:

• Slower internet speeds because of increased traffic.
• Exposure of personal or sensitive data.
• Unauthorized access to connected devices.
• Potential legal complications tied to suspicious activity.

With the average home now having more than 20 connected devices, the number of potential vulnerabilities continues to grow.

“Once someone gets into your network, it can open the door to all kinds of activity you may not even notice,” Chatwell said.

How it happens — often without you knowing

In many cases, consumers unknowingly agree to participate.

Some apps and services include terms that allow background use of your internet connection, while others install malware that silently operates on your device.

Free apps and VPNs are among the most common entry points.

“Some of these services are monetizing your connection,” Chatwell said. “You think you’re getting privacy, but in reality, your device may be participating in something you don’t understand.”

Devices themselves also can introduce risk.

Off-brand or low-cost connected devices may lack proper security protections, and in some cases, vulnerabilities exist before the device is even installed.

And sometimes, the risk comes from within the household.

“Kids, for example, are often trying to find ways around restrictions, sometimes not even intentionally, but downloading games or content differently can create an entry point,” Chatwell said.

How to protect your home network

Midco emphasizes that protecting your network starts with a few key steps:

• Only download apps and software from trusted, official sources.
• Avoid pirated content and unofficial streaming services.
• Be cautious with free VPNs and apps that promise “free” access.
• Regularly update devices, routers and software.
• Use strong passwords and secure your Wi-Fi network.

Awareness also plays a major role.

“Using parental controls in your router can be a huge benefit,” Chatwell said. “But it also comes down to education and talking with your kids about what they’re downloading and why it matters.”

Some families are even limiting access altogether.

“We’re seeing a renaissance of parents going back to flip phones,” he said. “These devices can’t download apps but allow kids to call and text.”

Midco adds another layer of protection through its network and services.

Customers who lease routers through Midco receive regular, automatic security updates designed to keep devices current with the newest protections.

“We keep all devices leased to our customers updated with security and the latest features,” Chatwell said.

Midco Wi-Fi also includes built-in security tools accessible through an app, allowing customers to see potential threats and activity.

“Our Midco Wi-Fi product has an app with security features built in,” he said. “Some run automatically, and others you can turn on to see threats that have been blocked right on your dashboard.”

Beyond individual homes, Midco monitors network-wide traffic patterns to identify unusual behavior.

The company looks for anomalies such as unexpected spikes in usage or irregular traffic that may indicate a compromised device.

“We’re not looking at what customers are doing,” Chatwell said. “But we are monitoring trends and traffic patterns. If something doesn’t look right, we can investigate further.”

In some cases, that leads to direct outreach.

“We’ll reach out to customers if we see unusual patterns,” he said. “Sometimes, it’s as simple as asking if they recently purchased a streaming device, and that helps identify the source.”

Midco also works closely with industry partners and federal cybersecurity agencies to stay ahead of emerging threats, while using advanced firewalls and distributed denial-of-service protections to safeguard its network.

Why it matters

As the number of connected devices continues to grow, so does the importance of protecting home networks.

What happens on one device can impact an entire household and potentially contribute to larger cyberthreats.

“It really comes back to awareness,” Chatwell said. “The better you understand how these things work, the less likely you are to fall victim to them.”

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