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Cybercriminals Seek Clean Residential Proxies for Fraud

Cybercriminals engaged in carding, the illicit use of stolen payment card data, are increasingly seeking "clean" residential proxies to bypass advanced fraud detection systems. Analysis of 2,889 underground forum posts over the past two years reveals a shift in how these actors evaluate and utilize proxy infrastructure. Rather than viewing residential proxies as a standalone anonymity tool,…

ZeroDay News ·

Source: BleepingComputer

Cybercriminals engaged in carding, the illicit use of stolen payment card data, are increasingly seeking "clean" residential proxies to bypass advanced fraud detection systems. Analysis of 2,889 underground forum posts over the past two years reveals a shift in how these actors evaluate and utilize proxy infrastructure. Rather than viewing residential proxies as a standalone anonymity tool, carders now integrate them into a comprehensive identity-simulation stack that includes device fingerprints, browser profiles, billing information, time zones, cookies, and transaction behavior.

A key finding is that the term "residential" is no longer considered sufficient; carders now distinguish between "clean" and "dirty" proxy pools. This distinction arises from the understanding that even residential IP addresses can accumulate poor reputations if repeatedly used for fraudulent activities. An underground guide titled "Getting the Cleanest Possible IPs for Carding" emphasizes that an IP's history, particularly its prior use against banks or payment processors, is more critical than its residential status alone. Forum discussions indicate a belief that proxy reputation is dynamic and influenced by all users sharing the infrastructure.

The demand for precision in geographic consistency has also intensified. Older carding advice focused on matching an IP's country with the stolen card's origin. However, recent discussions highlight the need for a far narrower standard, extending to matching an IP's approximate location with the billing ZIP code, device time zone, operating-system language, and browser characteristics. Some users have expressed concern over major residential proxy providers removing ZIP code targeting, fearing that city-level targeting may no longer be precise enough to evade fraud controls. This reflects a strategic shift towards constructing a coherent digital identity rather than merely masking a real IP address.

Residential proxies are rarely considered sufficient on their own and are frequently paired with antidetect browsers and fingerprint manipulation techniques. Guides circulating in underground forums warn that even a perfect residential proxy will fail if the browser profile exposes contradictory information. The consensus among carders is that a successful fraudulent setup requires evaluating the device, proxy, account history, payment information, and target merchant holistically. This approach mirrors modern fraud detection systems, which combine multiple signals such as transaction history, identity data, and card information.

Furthermore, many established proxy providers restrict access to financial services, government portals, and other fraud-sensitive targets. This limitation has created a secondary market for services advertised as "finance-enabled" or "bank-compatible." Some carders speculate that restricted residential pools might contain cleaner IPs precisely because they haven't been overused against financial institutions. However, the reliability of these specialized proxy advertisements is often difficult to verify, and some may be scams.

The search for usable residential infrastructure occurs within a broader, increasingly contested proxy ecosystem. In July 2026, law enforcement agencies, including the FBI, collaborated with industry partners to seize hundreds of domains associated with the NetNut residential proxy platform and the Popa botnet. This network reportedly comprised at least two million compromised devices, including smart TVs and streaming boxes, which were converted into residential proxy nodes used for activities such as advertising fraud and account takeovers. An FBI alert in March 2026 also warned that criminals can select residential IPs based on specific criteria.

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