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There are basically two kinds of residential proxies: apps that act as a proxy service as their monetization model (sometimes in lieu of ads) and straight up malware compromising IoT devices. The former is very common on televisions, which are always on and easy to ignore.
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This is such a problem that Samsung actually recently banned this stuff from Tizen, but I have no doubt in my mind that these companies are going to find ways around the ban. techcrunch.com/2026/08/03/s...
techcrunch.comSamsung bans smart TV apps that share users' internet connections with strangers | TechCrunchNew security research offers a rare view inside residential proxy networks, which rely on apps that share a person's internet connection with someone else.