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Two Alleged ‘TeamPCP’ Hackers Arrested in Australia

2026-08-27 19:04:15

Authorities in Australia have arrested two men believed to be members of TeamPCP, a prolific cybercrime and data extortion group blamed for perpetrating the longest running spree of software supply chain attacks ever.

In a statement released today, the Australian Federal Police (AFP) said two men from Western Australia, aged 21 and 23, were arrested in connection with a “sophisticated cybercrime syndicate that allegedly created malicious open-source software to rob thousands of global businesses.”

The AFP did not name the defendants, but KrebsOnSecurity learned the 21-year-old suspect’s real identity in June, and has been communicating with him ever since. This story includes interviews with TeamPCP’s self-described spokesperson, and examines clues left behind by the TeamPCP leader that likely led to his undoing.

TeamPCP vaulted onto the cybercrime scene in late 2025, embedding malicious code in hundreds of open source software tools and extorting victims for profit. Members of the group made headlines by compromising corporate cloud environments using a self-propagating worm dubbed Shai-Hulud, which added malicious code to open source programs maintained by developers whose credentials at public code repositories like GitHub or NPM were phished or stolen.

Writing for Wired, journalist Andy Greenberg described TeamPCP’s core tactic as a kind of cyclical exploitation of software developers.

“The hackers gain access to a network where an open source tool commonly used by coders is being developed,” Greenberg wrote in May. “The hackers plant malware in the tool that ends up on other software developers’ machines, including some who are writing other tools intended to be used by coders. The malware allows TeamPCP’s hackers to steal credentials that let them publish malicious versions of those software development tools, too. The cycle repeats, and TeamPCP’s collection of breached networks grows.”

TeamPCP also has practiced something akin to cyclical recruitment. In May, the source code for the third iteration of Shai-Hulud was published online, and TeamPCP soon after launched a contest offering $1,000 in virtual currency to whichever participant could conduct the largest supply chain operation using the worm’s code. According to the contest rules, participants were scored based on the number of weekly and monthly downloads of packages they compromised — directly incentivizing them to target the most popular code libraries.

A screenshot of a message from TeamPCP’s Telegram account, announcing the supply chain hacking contest. Image: dataminr.com.

“TeamPCP has stated the competition is a recruiting opportunity and they intend to purchase all meaningful access harvested from participants’ campaigns,” the security firm Dataminr wrote. “The $1,000 XMR (Monero) prize is a recruitment floor and has been dismissed by the actor as ‘just like participation trophy,’ adding ‘if you find something good you will be paid way more,’ confirming the contest’s true function as talent identification and malicious access acquisition at scale.”

In March, TeamPCP executed a supply chain attack targeting AI infrastructure by compromising the code for LiteLLM, an open source AI gateway that connects users to more than 100 different large language models. A recent analysis by the security firm CloudSEK found TeamPCPs attack on LiteLLM harvested cloud service keys and other secrets from more than 2,500 organizations, including many of the world’s top technology companies.

In May, TeamPCP claimed credit for compromising at least 3,800 code repositories at the Microsoft-owned GitHub, after a GitHub developer installed a code extension that was compromised by TeamPCP’s malware.

MEET THE CYBERCATS

Security experts say TeamPCP is less of a hacker group than an amalgamation of threat actors from multiple cybercriminal gangs who sometimes work together toward similar goals.

“It is not a structured criminal crew with a single operator,” said Austin Larsen, a principal threat analyst with the Google Threat Intelligence Group. “It is a peer community of individually-skilled actors, with one clear center of gravity.”

That center of gravity is George Prepakis, an accomplished security researcher and self-described exploit developer who operates the Twitter/X profile @kernelstub. Earlier this year, @kernelstub tweeted a public invite link to a Matrix chat server he created and dubbed “Cybercats,” and TeamPCP and several other cybercrime entities have been using this server to communicate daily for the past several months.

A screenshot of the Matrix chat server “Cybercats,” whose members used hacker handles associated with multiple distinct cybercrime groups that have occasionally collaborated on a series of supply chain and data ransom attacks over the past nine months.

Kernelstub, like other administrators in the Cybercats chat, has been using his Twitter/X profile name as his handle in these Matrix communications, frequently tweeting references to other members and to conversations taking place in the Cybercats chat. In a number of cases, the corresponding X accounts for members of the Cybercats chat taunted cybercrime victims publicly before the incidents were reported in the news media.

The Cybercats administrator listed at the top of the screenshot above — “Boxturtle” — is a close associate of TeamPCP who has been tweeting about the group’s conquests under the name @xpl0itrsturtle. This handle corresponds to a data breach broker active on Breachforums and Darkforums who has been selling data stolen in a wave of recent breaches at automobile manufacturers, including BMW Group, Audi, Honda, Mercedes-Benz, Volvo and Toyota, as well as data allegedly taken from Snapchat and SportRadar.

The data leak site for the extortion group or handle “xpl0itrs.”

The Cybercats administrator “SeesawSec” in the screenshot above is the alias of whoever is behind the cybercrime group known as Fulcrumsec, which recently claimed credit for data extortion attacks against the pharmaceutical giant Novo Nordisk, the data broker LexisNexis, and Avnet, a Fortune 500 distributor of electronic components.

The data leak site of Fulcrum Security, a.k.a. Fulcrumsec.

The Cybercats administrator “@pcpcasper” also has been using a similar name on X to discuss TeamPCP’s attacks and victims. This person has an extensive message history on Telegram, where their messages and shared videos show @pcpcasper is an active and vocal member of the National Socialist Network, a neo-Nazi political organization based in Australia.

At one point in these chats, @pcpcasper shared videos and images of what they claimed was their cat, and several of those videos place this user in Western Australia. One source close to the investigation told KrebsOnSecurity that @pcpcasper was one of the two arrested, a claim supported by messages that @kernelstub posted online this morning.

The Cybercats member roster pictured above also features an administrator with the username “T,” which is short for the now-banned Twitter/X profile @pcpcats, the account operated by the self-described TeamPCP spokesperson who was arrested today. As we’ll see in a moment, @pcpcats also is from Western Australia.

By the time @kernelstub tweeted a public invite link to the Cybercats Matrix server, T/@pcpcats was posting only infrequently to the group chat, with other members often inquiring as to his whereabouts and well-being. The group’s collective concern related to @pcpcats’s tendency to blame his increasingly extended absences on the use of hallucinogens and other narcotics that kept him awake for days on end, but also caused him to crash in bed for several days after the highs wore off.

WHO IS THE TEAMPCP LEADER?

The Cybercats member @pcpcats has used multiple nicknames on the cybercrime forums, including EllisD25/LSD on Darkforums, BulkDMT on Breachstars, and Express on Breachforums. These accounts are linked because they all advertised the same Tox ID and/or Session ID as instant message contact handles in their cybercrime forum posts. BulkDMT was also known on the forums as DMT Host, which was a virtual private server (VPS) hosting service that was peddled on Darkforums and Breachstars.

DMT Host/EllisD25, posting on the English-language cybercrime community DarkForums in September 2025. Image: ke-la.com.

According to the cyber intelligence firm Intel 471, Express registered on Breachforums using the email address [email protected]. Intel 471 finds Express posted on Breachforums across a two-month period in 2025 using four different Internet addresses located in South Africa. On July 30, 2025, Express announced on Breachforums they were selling access to 14 gigabytes of data stolen from South Africa’s State Information Technology Agency.

The threat intelligence platform Flashpoint recorded more than a year’s worth of messages from the TeamPCP leader’s alter ego on Telegram — Persy_PCP —  who claimed they split their life living between two countries [full disclosure: Flashpoint is an advertiser on this blog]. “I have these [files] as well, problem is these are in another country,” Persy_PCP explained to another user inquiring about a stolen data set in November 2025.

Later that month, Persy_PCP complained, “My whole country is racist and they want people like me dead.” Flashpoint records show BulkDMT shared in September 2025 that “this country is going to fucking starve when they take the farmers land,” a likely reference to white landowners in South Africa who claim to be targeted by an ongoing genocide campaign.

This tracks with public reporting on TeamPCP. Cyberscoop reported in June that Google had traced TeamPCP’s residential and mobile Internet address connections to South Africa, “indicating the primary operator was located there during at least some of its attacks.”

BulkDMT also shared on the group chat at Breachforums that they were recovering from an addiction to methamphetamine. “My life is kinda fucked rn [right now], but that’s fine and there isn’t really a point in pouring so much emotional energy into that fact, my parents had money but I unfortunately got really addicted to some things so I don’t get to benefit from that. As long as I continue to survive, stay sober, and move closer towards my goals that’s enough drive and meaning.”

The identity threat protection company SpyCloud finds [email protected] shows up in the registration of an account called ChristmasSnow on the cybercrime community Raidforums in 2022. Nearly all of the Internet addresses used to access that account came from ISPs in Perth, Australia, SpyCloud found.

KrebsOnSecurity looked up all of those Perth IP addresses in passive DNS records maintained by DomainTools.com, and found one of them — 211.27.196.111 — for several years was used as a private file server by a family in Perth with the last name of Thomson. Those records show at least three hosts — ithomson.direct.quickconnect.to (a remote Synology server), kthomson0061.direct.quickconnect.to, and joshuawthomson39.myqnapcloud.com (a QNAP network storage device) — persisted at that address between 2022 and 2025.

Searching on “joshuathomson39” in the breach tracking service Constella Intelligence reveals an account at the freight forwarding company kwe.com created in the name of Joshua Thomson from Perth, Australia. The open source intelligence platform Epieos finds the phone number attached to that kwe.com account was used to register a Facebook profile for Josh Thomson, which says his family includes a brother named Ruben, his father Ian, and his mom Cindy.

That Facebook profile also says Josh and his family are originally from Pietermaritzburg, in KwaZulu-Natal, South Africa, but currently living in Cottesloe, a beach-side suburb of Perth. A search in DomainTools for Ian Thomson and Australia unearthed five domains by the same registrant, including securecomputing.au, thomson.org.au, and thomsonfamily.net.au. Ian Thomson is a dentist in Cottesloe, and a biography says he graduated from The University of the Witwatersrand in Johannesburg, South Africa.

Constella finds a [email protected] registered a number of accounts online, but Josh doesn’t seem to have much of a connection to dodgy cybercrime forums. His brother Ruben, on the other hand, has quite the presence on these communities, dating back to at least 2018. Constella reports [email protected] frequently reused the password “joshuathomson1,” and Constella further finds that password was used by just a handful of accounts, including [email protected] and [email protected].

According to Intel 471, [email protected] was used to register the user Yolosolo17 on the crime forum Altenen in 2018, and that user account was registered from the Perth address 110.141.230.15. On Altenen, Yolosolo17 advertised free web proxies, as well as the domain rubenthomson.com, which was at one point used to sell steeply discounted iPhones. DomainTools says rubenthomson.com was hosted at 110.141.230.15 and registered to [email protected].

A cached copy of the domain rubenthomson.com from 2017 shows a login page underneath a banded stack of money. Image: archive.org.

SpyCloud reports 10.141.230.15 was used by the email address [email protected] on Raidforums and [email protected] on Nulled, and that the same IP was used by the email addresses [email protected], [email protected], and [email protected]. SpyCloud also shows that sheepstealing Gmail address is tied to the accounts Sheep420, YoloSolo117 and Yakuza.cc on Raidforums, and to the account “Sheep Stealing” on Hackforums. Intel 471 says [email protected] was used to register the account DingoFlour on Breachforums in October 2023, as well Sheepx on Altenen.

Epieos reports that [email protected] is tied to an Airbnb account for Ruben, who described himself as a Web developer who went to school at the University of Western Australia and was living outside the country. “Hey, I’m Ruben, my friends call me Ellis. I’m a Perth creative who occasionally books rooms when visiting family and for photography.”

Epieos also finds [email protected] registered an upwork.com profile under the name Ruben, who said his main skills are setting up secure server hosting solutions and PHP full-stack Web development.

“I’m familiar with Linux, working with relational databases (SQL),” the Upwork profile reads. “I also script in Python mainly for writing social media bots.”

The Upwork profile for Ruben Thomson in Cottesloe, Australia.

Epieos further discovered [email protected] is connected to a Microsoft account for Ruben Thomson, and to a now-defunct GitHub account called XmasSnow/XmasSnowisBack that scammed people on the forums in 2022 by claiming to sell exclusive exploits for recently-released software patches (recall that [email protected] was used to register a forum account named ChristmasSnow).

This same sheepstealing email address registered a Twitter/X account in 2026 called “Gone Fishing” that lists its location as South Africa. That Gmail account also left several reviews for businesses listed on Google Maps over the past seven years, but all of those establishments are located on the west coast of Australia.

Business reviews in Western Australia left by the Google account sheepstealing at gmail.com.

The people search service Pipl finds a 21-year-old Ruben Thomson in Western Australia who has a phone number ending in 979. A lookup on that number at Epieos reveals it is connected to a TikTok account under the name Ellis, and to a PayPal account in the name of Ruben Thomson.

Finally, a search on the name Ruben Thomson from Cottesloe at the Australian government’s record of registered businesses finds he has incorporated or served as an official in multiple companies created since 2024, including Secure Computing Solutions, Tensor Industries, and another entity ironically named OPSEC Express. Recall that Express was BulkDMT’s nickname on Breachforums.

Australian companies connected to Ruben Thomson. Image: abr.business.gov.au.

It’s ironic because OPSEC is short for the term “operational security,” which refers to techniques and behaviors used to obfuscate and compartmentalize one’s real-life identity online, and using your cybercrime handle as part of your own company name is very much the antithesis of that practice.

There is at least one other major opsec failure by Ruben that exposed a link to TeamPCP. In June 2025, someone using the name Ruben Thomson registered on HackerOne, a popular “bug bounty” program that seeks to reward and recognize researchers who agree to work with affected software vendors to help fix the flaws before publishing about their findings. What was Ruben Thomson’s chosen HackerOne username? Deadcatx3, a nickname that has been flagged by multiple security firms as an alias used by TeamPCP.

The HackerOne profile for “Ruben Thomson” uses the nickname Deadcatx3, which multiple security firms have concluded is an alias used by TeamPCP. Image credit: flare.io.

INTERVIEW WITH ELLIS

In early July 2026, not long after having discovered clues about Ellis’s real life identity, KrebsOnSecurity interviewed the TeamPCP leader via Signal, where he was remarkably open about his activities and personal struggles [for the sake of simplicity, the TeamPCP spokesperson will be referred to from here on as Ellis].

Ellis claims he stopped doing cybercrime for TeamPCP in March 2026 — just before the attacks that compromised LiteLLM — and that at least one other individual has taken over the group’s leadership since then. Ellis shared that a year earlier he had just completed the latest in a series of detox and sobriety programs, and was two months sober when he reconnected with some old friends from the malware development scene.

“One year ago I needed help monetizing some [GitHub credentials], I was two months sober and needed a distraction and something to keep busy as well as people to speak to,” Ellis said. “I had largely disconnected from my old circle, they had become very toxic and I needed to get away from the substances. Previously I had done some mass exploitation campaigns and grew up doing [malware development] and [capture the flag] contests. There were some friends who were also vending but had stopped a while, and one of them introduced me to some chats where I posted access for sale.”

Prior to that, Ellis said, he was homeless and hopping between “some very unstable places.”

“Blackhatting is fun,” he said. “There are actual rewards and incentives to learn and you grow with your team. Without qualifications, no employer will even take the time to hear you out.”

Ellis claims he’s earned a grand total of about $20,000 for his activities with TeamPCP, and that it was never about the money or fame for him. Asked whether his experiences with TeamPCP might prepare him for gainful employment in a legitimate IT job, Ellis said he doubted it.

“I am nowhere close to a skill level where I am comfortable, and this would take maybe half a decade of further experience,” he said. “I no longer have to choose between rent and food for that I’m grateful and so are the team members.”

Ellis expressed no remorse over his cybercrime activities, and said he was grateful for the friendships and relationships built throughout his engagement with TeamPCP. The young hacker also seemed resigned to his fate, and told KrebsOnSecurity that he’ll accept the consequences if he’s ever arrested.

“If I’ve already been found out then its out of my control, I’ll make peace with that,” he said. “Honestly, I think someone like me needs a lot of help that prison just can’t provide. If I had the funds to study different parts of the field and closer guidance, this would have turned out differently. But that’s a pipe dream and we both know this.”

It is clear from reading Ellis’s posts to the group’s Matrix server chats that his struggles with sobriety are ongoing. On Thursday, June 25, Ellis told @kernelstub he was about to “trip” with his “homie.”

“What kind,” @kernelstub inquired.

“Ketty and some DMT,” Ellis replied, referring to the dissociative anesthetic ketamine and dimethyltryptamine (DMT), a powerful psychedelic compound that is found naturally in some plants but is also synthetically produced in underground lab environments. “There’s a little 2cb so we might throw that in the mix,” he continued, referring to another psychedelic compound by its chemical shorthand.

Roughly two weeks before his arrest, Ellis told KrebsOnSecurity he was ready to leave his life of crime behind and was prepared to turn himself in, but that in the meantime he was making plans to tie up loose ends.

Less than 24 hours later, the TeamPCP leader posted an image on Telegram showing a yellowish powdered substance in a baggie and on a scale, possibly synthetic DMT. The image shows the powder being weighed next to a series of small vape cartridges, two of which are open on the table in front of the photographer.

An image posted by the TeamPCP leader to Telegram, advertising his acquisition of some type of psychoactive substance, most likely a synthetic version of the powerful hallucinogen known as DMT.

The two defendants were arrested Wednesday morning. The AFP said the men face a combined 14 cybercrime offenses and are scheduled to appear in Perth Magistrates Court today.

Charlie Eriksen is a security researcher at Aikido Security who has closely followed TeamPCP’s cybercrime campaigns. Eriksen said TeamPCP are a good example of a new kind of threat actor that does not fit neatly into the usual categories.

“They are not a state actor, not quite organized cybercrime, and not purely ideological,” he said. “Their motivations seem to mix money, disruption, attention, and ideology.”

Eriksen said that historically there has always been a meaningful gap between reading about an attack technique and being able to reliably turn it into an operational campaign, but that large language models (LLMs) and artificial intelligence increasingly are helping threat actors to bypass that knowledge gap.

“You had to understand the research, adapt the code, troubleshoot it, build infrastructure around it, and then repeat that process across different targets,” he said. “LLMs have compressed that gap significantly.”

According to Eriksen, this creates an environment where threat actors suddenly have the ability to operate at significant scale without having developed the operational discipline that traditionally accompanies that level of capability. Put another way, it sets the stage for cybercriminals who are capable enough to cause significant damage, but not necessarily careful enough to understand or care about the consequences.

“They can be noisy, they can make mistakes,” he said. “They can leave evidence everywhere. They can take risks that a professional criminal group or intelligence service would consider completely unacceptable. But that does not necessarily make them less dangerous. In some ways, it can make them more dangerous.”

In a recent blog post, Eriksen called TeamPCP’s Shai-Hulud worm the “best thing to happen to supply chain security,” because it forced GitHub and other public coding platforms to erect new security safeguards.

In direct response to TeamPCP’s broad success at pushing poisoned versions of popular software packages, GitHub in late July introduced a three-day “cooldown” mechanism for Dependabot, the platform’s tool for auto-fetching newly shipped updates for any package dependencies. Cooldown periods are designed to help buy time for security tools and package maintainers to identify and remove any compromised versions. Other coding ecosystems like Python and various JavaScript platforms also added support for cooldown periods this year amid growing calls from security experts about the need for more widespread adoption of the safety feature.

Eriksen said TeamPCP’s legacy is that they achieved in the span of a few months what the supply chain security community has been unable to do for years.

“They managed to wake up Microsoft to the fact that they had become negligent in terms of security,” Eriksen said. “By compromising GitHub and stealing their source code, they humiliated Microsoft into action, making them finally act on what we had been asking them to do and take seriously for a while now.”

Update, 10:08 a.m. ET: A story this morning from ABC News in Australia confirms Ruben Ian Thomson of Cottesloe was one of the two arrested. The 23-year-old suspect thought to be @pcpcasper, Michael Gaebler, also was arrested in Perth. ABC News reports that Thomson was denied bail (Mr. Gaebler’s attorney reportedly did not request bail for his client), and that both men will be held in custody until their next court appearance on September 18.

Who’s Tracking You? Use This New Service to Find Out

2026-08-14 19:24:35

It can be daunting to determine who’s responsible for showing ads on the websites we visit, or who’s harvesting data from the mobile apps we use every day. That information is already semi-public, but it is not easily parsed and traditionally much of it has remained walled away in the hands of large advertising platforms. Not anymore: A powerful and free new service called DecryptAds scrapes and correlates this adtech data and makes it simple to quickly learn a great deal about the entities that are tracking you.

A Decryptads summary of the advertising partnerships declared by espn.com.

The newly launched decryptads.com says it is constantly scraping the files that websites and apps make publicly available to disclose the companies that are permitted to run ads or collect user data. These files include:

ads.txt: all of the adtech companies and data brokers that may run ads or harvest data from the site;
app-ads.txt: entities that can harvest data from or display ads on mobile and smart TV apps;
buyers.json/sellers.json: the entities buying, selling or reselling ad inventory for a given site or app.

Zach Edwards is chief research officer for DecryptAds and a threat researcher at the security company Infoblox. Edwards said he and two other founders decided the service was needed because the adtech data in these files is generally only useful when it can be cross-referenced to build a more complete picture of the advertising ecosystem for each website or app.

“It’s an adtech tool but we’re trying to approach adtech from a security perspective,” Edwards said. “It’s really built for a lot of privacy and security use cases that have been dramatically underserved.”

Those use cases, he said, include tracking down the source of malicious ads that try to foist malware on targeted users, identifying ad networks located in adversarial nations, and detecting the fast growing swarms of AI-generated slop websites and apps. And as decryptads.com demonstrates, these potential security and privacy threats are near impossible to detect just by viewing a single apps.txt or app-ads.txt file.

“Supply-chain integrity issues rarely live in a single file,” the site explains. “They show up as broken cross-references between ads.txt, app-ads.txt, and sellers.json files; as cloned declaration sets across unrelated domains; as seller removals that only make sense when viewed across exchanges; and even as supply paths in bid logs that never actually appear in any given publisher’s authorized-seller list.”

A search in DecryptAds for the hugely popular sports network espn.com reveals 143 ad partners and 19 registered data broker domains are listed within its ads.txt and app-ads.txt files. That data broker information is gradually becoming available because four states — California, Oregon, Texas and Vermont — have recently passed laws requiring data brokers to register if they buy or sell data on consumers from those states. DecryptAds reports that almost half of those data brokers are collecting geolocation data from espn.com visitors who aren’t blocking ads, while another three disclose that they collect device fingerprints and sensitive personal information.

A visual representation of the complex ad supply chain declared by espn.com. Image: decryptads.com.

HIGH-RISK AD PARTNERS

DecryptAds also makes it easy to learn the beneficiaries and national origins of the advertising firms lurking in apps and websites, displaying a conspicuous warning when adtech partners of an app or website are based in “geo-risk” areas like China and Russia, or in countries with strong financial and political ties to both — such as Cyprus and the United Arab Emirates (UAE).

According to DecryptAds, espn.com works with four different advertising entities that are based in either Russia, China or the UAE, including the adtech firm Between Digital, which lists a New York address. However, the dossier on Between Digital flags them as a Russian firm, showing that their publisher offers (PDF) are processed through Alfa Bank, Russia’s largest private commercial bank and one of several financial institutions placed under U.S. sanctions in 2022 after Russia invaded Ukraine. KrebsOnSecurity sought comment from both Between Digital and the company’s founder, and will update this story in the event that either replies.

A search for several top U.S. military news websites — including armytimes.com, airforcetimes.com, defensenews.com, navytimes.com, marinecorpstimes.com and federaltimes.com — shows they all allow Between Digital to serve ads and track users, as well as two entities in the UAE and another in the ownership secrecy haven of Panama. DecryptAds reports that Between Digital is collecting ad data on approximately 55,000 partner websites.

The “Geo Risk” section of decryptads.com.

Pivoting on Between Digital’s app-ads.txt file reveals hundreds of domains featuring simple web-based games that are frequently interrupted by ads. Edwards said Between Digital’s own declarations show the company is listed as both a publisher and a reseller on approximately two-thirds of their portfolio.

“It means they are basically playing both sides of the bidding equation, which creates opportunities to direct client spend at your owned and operated properties or client infrastructure, essentially creating opportunities for conflicts of interest,” Edwards told KrebsOnSecurity. “The problem we have right now is that for years we’ve had almost no one policing these ads.txt and app-ads.txt files.”

The Opera Web browser remains quite popular, and probably many users are unaware that since 2016 it has been majority owned and controlled by the Chinese company Kunlun Tech (the operational headquarters of Opera remain in Oslo, Norway).

Opera.com’s profile at DecryptAds identifies 27 registered data brokers collecting information, including 15 adtech partners in the UAE, six in China, three in Cyprus, two in Russia and one each in Hong Kong and Ukraine. DecryptAds makes clear, however, that these companies represent just seven percent of the adtech partners specified in Opera.com’s ads.txt and app-ads.txt files.

LEGAL DOSSIERS

One feature of DecryptAds that sent this author down multiple hours-long research rabbit holes is its Legal Dossier lookup, which takes several minutes for each search but eventually churns out oodles of useful information about who owns a particular domain or app, when it was registered, and any aliases or relationships it may have to adtech companies and other websites or apps.

For example, last month KrebsOnSecurity wrote about researchers from Bitsight who found that an extremely popular line of TV streaming sticks called H96 quietly rent out each user’s Internet connection to strangers. Bitsight also discovered that when these devices aren’t being used to stream pirated video content, they are spoofing themselves as mobile phones clicking ads on AI-generated slop websites.

Bitsight concluded that the same Chinese company that made several of the malicious apps common to all of these H96 streaming sticks — the Fengwo Group — also also ran the network of ads and AI slop websites being clicked on by tens of thousands of these devices that are pretending to be mobile phones.

Examples of ad landing pages linked to the Fengwo Group. These sites were designed to show ads only to H96 devices that were spoofing their device type as mobile phones. Image: Bitsight.

A DecryptAds legal dossier on the (now dormant) Fengwo Group domain name for the AI slop website pictured on the left in the screenshot above (medicalbeautyhub dot com) shows it shares a seller ID (1674071) with a gaming website — giacoloredstones[.]com — which features yet another seller ID (103488000).

Pivoting on that latter seller ID reveals hundreds of active websites within Russia’s Yandex ad system featuring extremely low-quality games or simple utilities that pepper visitors with ads.

QUIET REMOVALS

Edwards said that when advertising networks suspect a given advertiser is engaged in unauthentic clicks or displaying malicious ads, very often those networks will quietly remove the offender from their list of approved partners without letting anyone else know about their suspicions.

This practice, he said, makes it easier for dodgy adtech firms to avoid accountability and continue victimizing others. To address that visibility gap, DecryptAds features a quiet removals feed that records and correlates all of the sellers.json removals across ad exchanges for the same seller domain or name.

A screenshot of the Quiet Removals Feed at decryptads.com.

“The way the adtech industry works, someone will write a report about ad fraud and only share it with their own clients and they won’t make it public,” Edwards said. “The ban is just removing them from the sellers.json file, but they told nobody. One day it was there, the next it was gone. So if you’re trying to navigate who is suspicious, that’s usually tough to do because there are a lot of adtech companies removing things all at once.”

MALVERTISING AND AI SLOP

Malvertising, the term given to the practice of inserting malicious ads that foist malware or redirect visitors to phishing pages, remains an all-too-frequent occurrence in the modern adtech industry. But Edwards said these malicious ads are far more commonly found now on newly generated AI slop websites than on high traffic destinations that typically employ a variety of technologies and third party tools to quickly flag bad ads.

“None of these slop AI content farms are paying for that kind of protection,” he said. “They’re just signing up the lowest quality partners, and it essentially becomes a greased rail to target the users of those sites with malicious ads. Most malvertising attacks don’t happen on espn.com or huffpost.com, but rather [on] some lower quality content farm and someone just went there because it came up in a search.”

Edwards said the AI slop websites are populated with machine-generated blog posts and images, and cover a wide array of themes from home improvement and decorating to food recipes, hunting, cars and consumer technology. He said organizations that get hit with malicious ads are often at a loss for what to do next, unaware that in most cases the answer is one of the entities listed inside the website’s ads.txt or app-ads.txt file.

“A lot of serious organizations are starting to understand that if we’re not breaking down this ad data, we’re not going to know who’s targeting government people with zero-click payloads on an almost daily basis,” he said.

Edwards maintains that truly getting a handle on the malvertising and AI slop problems will require more data-sharing by the major ad networks. Specifically, he says those platforms do not broadly share what’s known as the “supply chain object” or SCO, structured data attached to each advertising bid request that lets buyers see every seller, reseller and intermediary involved in passing an ad impression from the publisher to the final buyer.

“That SCO tells you who sold it or resold it, and who was the final entity that bought the impression that served that malware payload,” Edwards explained. “You may see the malicious zero-click redirection, but without the supply chain object — which is only served server side — you won’t know who targeted your people with malware and won’t have a way to try and prevent it properly. But if we can encourage the adtech industry to expose that SCO, it will get easier to find the culprit behind any one bad ad.”

DecryptAds also offers an application programming interface (API) that allows researchers to automate queries and integrate the site’s functionality into popular AI platforms.

WHAT CAN YOU DO?

The only sane reaction to the examples described above is to block all online ads outright. This approach is broadly endorsed by security experts because it also makes it more difficult for adtech firms and data brokers to build detailed profiles on you and track your movements around the web and in the real world.

However, much depends on how you normally prefer to browse the Internet, and how much trust you place in third party browser plugins and extensions. For those primarily surfing via a regular desktop or laptop Web browser, uBlock Origin Lite is an excellent free and well-maintained open source option. uBlock Origin also should work with mobile browsers like Firefox, but apparently only on Android-based devices.

Adblock Plus is a decent option for iPhone and iPad users. For power users, Adblock and uBlock Origin both support custom blocking rules from easylist.to, which publishes a frequently updated list that removes most advertisements from webpages.

The well established browser extension NoScript blocks all non-approved Javascript code, and it generally does a fine job blocking most ads from loading. However, script blockers like NoScript may not be suitable for average users who don’t enjoy constantly having to referee which scripts should be allowed to load so that each site displays properly.

More technically inclined/adventuresome readers should strongly consider a hardware approach to blocking ads at the local network level, because that is easily the cheapest, most secure and scalable way to do it. A tiny, low-cost and broadly available computer known as a Raspberry Pi can be turned into a powerful ad blocker for all devices on a local network when fitted with a microSD memory card and a free program called Pi-hole. Once you’ve set it up properly and changed your router’s network settings to use the Pi-hole’s DNS sinkhole and DHCP servers, it should prevent ads from displaying on any devices connected to that network.

Bear in mind that ad blockers often do little to block ads and/or tracking that occurs from within mobile apps that users have chosen to install on their devices. Many websites now push users to install a mobile app, supposedly in order to more fully access and enjoy the site’s services and content. But in my experience, they’re not doing this because the user experience is somehow way better on the app (as LinkedIn tries to convince us non-app users several times a week via email). On the contrary, I find most mobile apps to be horribly designed, annoying, and/or completely unnecessary, and when given the option I will almost always choose to interact with a website or service directly in a Web browser.

No, the cold truth is that big web destinations tend to get pushy with their apps because they make it easier for these companies to keep you on their platforms longer and to collect (and in many cases resell) far more precise data about who, what and where their users are. Also, companies pushing customers the hardest to install mobile apps always seem to liberally opt everyone in to having their data used to train large language models these days. So be cautious about the apps you install on your mobile devices (including any smart TVs!), and poke around their listings at DecryptAds if you want to learn more about their privacy practices and any relationships they may have to adtech firms.

Microsoft Plugs Nearly 400 Security Holes

2026-08-12 05:28:35

Microsoft today released updates to remedy at least 398 security vulnerabilities in its Windows operating systems and supported software, including one weakness that is already being actively exploited and two others that were publicly detailed prior to today.

Image: Shutterstock, Mallika Home Studio.

August’s overstuffed bundle of patch joy from Microsoft did not eclipse its recording breaking release of more than 570 security updates last month, but it is double June’s then-record batch of nearly 200 fixes. Microsoft has attributed the recent patch deluge to vulnerability discoveries aided by artificial intelligence, and experts roundly agree that Windows users should get used to the idea of Patch Tuesdays (the second Tuesday of each month) covering hundreds of newly discovered security flaws.

Fully 42 of the 398 flaws that Microsoft patched today earned Redmond’s most-dire “critical” rating, meaning they are severe enough that malware or malcontents could exploit them to gain remote control over a Windows computer with little to no help from the user.

The sole known “zero day” bug fixed by Microsoft this month is CVE-2026-68820, a privilege escalation weakness in a core Windows component called afd.sys, which the security firm Automox describes as “the driver behind Windows socket connections on effectively every endpoint.”

“This isn’t a front-door bug,” Automox’s Landon Miles wrote in a Patch Tuesday blog post. “It’s step two in a chain: an attacker phishes their way into a low-privilege foothold, then uses the driver flaw to take the box. The 7.0 score reflects the high attack complexity, because race conditions are fiddly. The exploit has to be thrown over and over until the timing lands. Someone is clearly landing it anyway.”

CVE-2026-62832 is another privilege escalation flaw that Microsoft has labeled likely to be exploited; this flaw, in the Windows User Profile Service, may be related to the recent “LegacyHive” public disclosure from the prolific bug hunter known as Nightmare Eclipse. The other publicly disclosed flaw is CVE-2026-72971, a low-impact local tampering vulnerability that Microsoft reckons is unlikely to be exploited.

Other major software makers are likewise increasing their patch volumes and cadence thanks to AI, including Adobe which last month moved to twice-monthly security bulletins published on the 2nd and 4th Tuesday of each month. Cisco, Google, Mozilla and Oracle also are shipping updates far more frequently and abundantly.

By all accounts, AI is quite good at finding security holes in software. But for now at least, patching the resulting bugpocalypse remains a heavily human-centric endeavor, and the jury is still out on whether AI technologies will turn out to be as good at fixing vulnerabilities as they are at finding and exploiting them. This is an important question when one considers that these same AI technologies also are suggesting fixes for the vulnerabilities they find.

Researchers at 1Password recently examined what happens when different large language models (LLMs) generate vulnerability patches for newly disclosed, complex vulnerabilities. They found the LLMs produced patches that failed to fix the flaw or added a new weakness in the process (or both) more than half the time.

Ed Skoudis, president of the SANS Technology Institute, said his team has seen excellent results using AI to generate patches, provided there are humans in the loop to test the suggested fixes and push for iterative improvements.

“AI is rapidly becoming astonishingly good at finding vulnerabilities, but this research shows that fixing them is a very different problem,” Skoudis wrote in a SANS newsletter today. “Don’t expect one-shot AI patching to work reliably. Instead, iterate, test, challenge, improve, and verify. AI can be an extraordinary patching partner, but today it still needs a skilled human at the keyboard.”

Tyler Reguly at Fortra says while reports of Microsoft patching hundreds of vulnerabilities in one go have prompted some organizations to try to patch faster, it’s important to bear in mind that only one of the almost 400 bugs addressed today is known to be actively exploited. Reguly suggested security leaders check in with their teams to see how they’re handling the increasing workloads, which often involve testing fixes before deploying them in production environments.

“If you’re a chief security officer talk to your teams about how they are shifting or modifying their workflows to better accommodate the patching shift that we’re seeing and support them across various organizational units by enabling the changes they want to see made,” Reguly said. “There’s no need to rush these updates, no matter what various vendors and organizations try to tell you. You need to make sure that you are rolling out safe updates that will not negatively impact your systems.”

Speaking of the humans behind the keyboards, don’t neglect to backup your system and/or data before applying this month’s monster patch load. The day after each month’s Patch Tuesday is sometimes derisively referred to as Reboot Wednesday, but it generally doesn’t hurt to wait a few days to apply these huge update bundles because it sometimes takes a couple of days for the occasional misbehaving patch to get ironed out properly by Microsoft.

For a clickable, per-patch breakdown by severity and urgency, check out this roundup from the SANS Internet Storm Center.

Canadian Man Pleads Guilty in Snowflake Extortions

2026-08-07 01:00:56

A 26-year-old Canadian man once described as one of the most consequential cybercrime threat actors of 2024 has pleaded guilty to computer fraud and conspiracy to hack and extort more than 165 organizations that used the cloud provider Snowflake. Connor Riley Moucka, of Kitchener, Ontario, also admitted to stealing call and text history records of more than 100 million AT&T customers.

A surveillance photo of Connor Riley Moucka, a.k.a. “Judische” and “Waifu,” dated Oct 21, 2024, 9 days before Moucka’s arrest. This image was included in an affidavit filed by an investigator with the Royal Canadian Mounted Police (RCMP).

The U.S. Justice Department said between February and October 2024, Moucka and co-conspirators used stolen login credentials to steal cloud-hosted data belonging to at least 165 customers of a U.S.-based software-as-a-service company.

The hackers targeted stolen credentials for Snowflake customer accounts that did not enforce multi-factor authentication, and extorted or attempted to extort a host of well-known companies, including TicketMaster, Lending Tree, Advance Auto Parts and Neiman Marcus. Snowflake responded to the data thefts by increasing password complexity requirements and enforcing multi-factor authentication.

Moucka adopted new nicknames frequently — sometimes operating multiple identities concurrently — but two of his best-known monikers were “Judische” and “Waifu.” Judische’s admitted role in the Snowflake data thefts was first documented by KrebsOnSecurity in a September 2024 story about the overlap between Western, English-speaking cybercriminals and extremist groups that harass and extort minors into harming themselves or others.

That September 2024 story identified Judische as a software engineer from Ontario who has been involved in numerous data breaches and voice phishing attacks against U.S. companies since at least 2020. A little more than a month later, Canadian authorities arrested Moucka on a provisional warrant from the United States.

The government says Moucka and others used their unauthorized access to steal billions of sensitive customer records and download terabytes of information, “including individuals’ non-content call and text history records, banking and other financial information, payroll records, Drug Enforcement Administration (DEA) registration numbers, driver’s license numbers, passport numbers, social security numbers and other personally identifiable information. They then extorted victims by threatening to publish data online.”

Moucka also threatened and harassed government officials and security researchers who were helping to track him down. The Justice Department said the conspirators made over $2.5 million in ransom payments, and that in at least one instance, Moucka re-extorted a victim with threats of further disclosure of the victim’s stolen data.

“Moucka used the stolen data of a government officer and members of a then-former government officer’s immediate family in this re-extortion attempt,” reads a statement from the Justice Department.

One of Moucka’s admitted co-conspirators is Cameron “Kiberphant0m” Wagenius, a U.S. Army soldier who pleaded guilty in July 2025 to extorting AT&T and Verizon for their customer account data. Less than a month before Wagenius’s arrest, KrebsOnSecurity published a deep dive into Kiberphant0m’s various Telegram and Discord identities over the years, revealing how the owner of the accounts told others they were in the Army and stationed in South Korea.

One of several selfies on the Facebook page of Cameron Wagenius.

Kiberphant0m also re-extorted victims. Immediately following Moucka’s arrest, Kiberphant0m posted on hacker forums what he claimed were the AT&T call logs for then President-elect Donald Trump and for then Vice President Kamala Harris, as well schematics allegedly stolen from the U.S. National Security Agency (NSA).

Wagenius is set to be sentenced on September 3, 2026. The government says he faces a maximum penalty of 20 years in prison for conspiracy to commit wire fraud, a maximum penalty of five years in prison for extortion in relation to computer fraud, and a mandatory two-year sentence consecutive to any other prison time for aggravated identity theft.

The third alleged co-conspirator is John Erin Binns, 26, an elusive American man who fled the United States after being indicted for his admitted role in a 2021 breach at T-Mobile that exposed the personal information of at least 76 million customers.

Sources close to the investigation said Binns, also known as “IRDev” and “IntelSecrets,” was until recently incarcerated in a Turkish prison, but that he has since been released and has resurfaced online. Those sources said Binns also recently obtained Turkish citizenship, and under Turkish law a citizen cannot be extradited to a foreign country.

An image of a passport that Binns shared in an email to KrebsOnSecurity in Feb. 2023.

Moucka pleaded guilty to four criminal counts, including computer fraud, wire fraud, aggravated identity theft, and conspiracy. He is slated to be sentenced on Oct. 27 and faces a mandatory minimum penalty of two years in prison on the aggravated identity theft count, as well as a maximum penalty of 30 years in prison on the remaining counts. Ultimately, it will be up the federal judge how much time Moucka actually serves for his extensive cybercriminal rap sheet.

For an interview with Moucka prior to his arrest and a deeper look at Binns, see our original report on Moucka’s arrest.

Read This Before You Buy That TV Streaming Stick

2026-07-31 00:49:00

Security experts have been sounding the alarm for years about the risks of using generic TV boxes that promise unlimited content streaming for a one-time fee, warning that they secretly rent the user’s Internet connection out to strangers. But a groundbreaking new analysis finds these devices also routinely spoof themselves as mobile phones clicking ads on AI-generated websites as part of a sprawling operation that seeks to defraud online merchants and advertising networks.

Pedro Falé is a threat researcher with the security firm Bitsight. Falé told KrebsOnSecurity he was able to peer inside a vast and complex ad fraud network by registering an expired domain name that was used to coordinate fake ad clicks across a particularly popular brand of these streaming devices known as H96.

An H96 TV streaming device currently advertised for sale on Amazon.

Falé said the domain he scooped up was previously used for telemetry, periodically collecting full hardware information and the entire list of installed apps from tens of thousands of H96 streaming sticks plugged into television sets around the globe. But upon inspecting the traffic being funneled to the domain, he discovered nearly all of the TV boxes transmitting data claimed to be mobile phone models from a variety of manufacturers, including Samsung, Vivo, Huawei, and Xiaomi.

“We noticed something was wildly wrong,” Falé said. “Multiple devices reporting to this factory Android TV Box backdoor were ‘phones.'”

Image: Bitsight.

The researcher found all of the devices reported having the same two apps installed, and that those apps were made by a company called Zhejiang Fengwo IoT Technology Ltd, an entity founded in 2019 in mainland China which operates an ad-publishing portfolio under the name Fengwo Group. Further investigation into the Fengwo Group revealed it has registered multiple patents that match the inner workings of these apps.

“Bitsight TRACE identified several Hong Kong, Singapore, and single person ‘legal’ shell identities used to collect the monetization and traced the operation back to a mainland China company known as Zhejiang Fengwo IoT Technology Co., Ltd, which operates under the Fengwo Group,” Falé wrote in a report released today about their findings.

Falé said an analysis of the apps shows they help to coordinate an ad fraud network that uses these H96 devices as a captive traffic source to click on ads at AI-generated websites operated by the Fengwo Group.

Bitsight discovered the websites contain machine-generated news articles and graphics across a range of categories, including finance, health, education, gaming, music and food blogs. But they also found none of those sites displayed ads unless the device visiting the page matched the spoofed mobile profile of these H96 devices.

AI DIGITAL HUMANS

The domain for the Fengwo Group — fwgcloud[.]com — claims the company is “redefining the boundaries of human-AI interaction,” and that it has created more than 120,000 “AI digital humans” available to rent for everything from emotional companionship to 24/7 customer service and creative design.

The homepage for fwgcloud dot com.

Falé said the Fengwo Group’s domain shared its SSL certificate data with other domains associated with the apps found on H96 devices, specifically the phone spoofing mechanism. He noted the domain also has an internal wiki platform that directly ties the Fengwo Group to a proprietary implementation of a Google-built visual programming language called Blockly, which was originally designed to help kids learn how to write software.

According to Bitsight, the Fengwo Group’s employees use Blockly to build the sham websites, allowing low-skilled operators to drag blocks of code together in their Blockly editor — without any need to understand what the underlying code blocks do or how they work.

The Blockly homepage.

“An operator can drag blocks together in their Blockly editor, to define each fraud routine, given a task type,” reads Bitsight’s report. “Once the routine is saved, it gets exported as JavaScript and uploaded to the S3 buckets. An operator doesn’t need as much understanding of the underlying technicalities, as it is all set in place for ease of use.”

Bitsight even found one of the Fengwo Group app developers mentioning exactly these advantages, noting the developer remarked that “only a small number of highly-skilled developers are needed to build the template execution-unit images,” and that “developers who create execution units from those templates have significantly lower technical requirements, greatly reducing the company’s operating costs.”

Falé said if a user’s H96 streaming stick is selected for a specific fraud task, it will be pushed the appropriate Blockly module according to the task desired, which can include silently launching a web browser, visiting websites, browsing pages, managing tabs, and clicking on ads.

To ensure the TV boxes masquerading as mobile phones can reliably click on ads displayed via the AI-generated websites, the Fengwo group “fuses three vision and reasoning systems into a single interface,” allowing the bots to correctly identify an ad on the webpage and navigate the site much like a human would, the Bitsight report observed.

Examples of ad landing pages linked to the Fengwo Group. Image: Bitsight.

TV ON? PROXY. TV OFF? AD FRAUD

Bitsight found the H96 devices were either relaying residential proxy traffic or participating in ad fraud, but never both at the same time. In fact, they concluded that when these TV boxes detect an HDMI signal from an attached television — indicating the user intends to stream video content — the box is usually functioning as a residential proxy. When the TV is off, it switches back to waiting for ad fraud jobs.

Falé said he believes the TV boxes are set up this way because its ad fraud activities are far more resource intensive and could interfere with the device’s stated purpose — streaming video content over the Internet.

Despite repeated warnings from the FBI and security industry leaders about the security and privacy risks of using these streaming devices, major e-commerce providers like Amazon, Best Buy, Newegg and others continue to sell hundreds of different models and brands that bundle unofficial versions of Google’s Android operating system and are frequently marketed (via online influencers) as a way to access a broad array of streaming services and live broadcasts without a subscription.

Image: fbi.gov.

In addition to enlisting the user’s TV box in ad fraud networks, these off-brand streaming devices almost universally come with residential proxy software pre-installed. This software rents the user’s Internet address out to anonymous paying customers, who run the gamut from aggressive content scraping firms to ticket scalpers and outright cybercriminals.

What’s more, because these generic (and generally dirt cheap) TV boxes are all horribly insecure by default and bereft of any kind of authentication, installing one on your home or office network only invites further mischief. In January, the proxy tracking service Synthient documented how multiple botnets had rapidly enslaved millions of TV boxes using a complex interplay of security vulnerabilities in both the residential proxy software and the streaming devices themselves.

SHOW ME THE MONEY

Bitsight said it tracked approximately 38,000 TV boxes globally phoning home to the expired Fengwo Group domain, and based on that number the report estimates this ad fraud network brings in revenues of close to $50,000 a day (not counting substantial revenue from the residential proxy side of the business). However, Falé emphasized that these estimates are highly conservative and based on telemetry from just one of the Fengwo Group’s core (but older) domains.

As for the Fengwo Group’s claim to have 120,000 “digital humans” at their disposal, Bitsight’s report concludes it could be just a clever marketing scheme and/or a way to avoid drawing suspicion to the company’s operations.

“Historically, when dealing with proxy services or DDoS, we sometimes see these websites undertake inconspicuous facades, so as not to advertise their DDoS capability or botnet size,” Falé wrote in the report. “This could also be the case here.”

If the Fengwo Group truly does have tens of thousands of “AI humans” at its beck and call, it does not appear to have dedicated any of them to fielding inquiries from its own website. KrebsOnSecurity sought comment from the Fengwo Group by emailing the contact address listed on the company’s homepage, but the request bounced back with the reply, “Your message couldn’t be delivered to postmaster@fwgcloud[.]com. Their inbox is full, or it’s getting too much mail right now.”

As Bitsight’s analysis shows, when it comes to TV boxes and streaming sticks, it’s best to stick to name brands from reputable manufacturers, and then to be sparing and careful with any apps you choose to install on the device — as many of those can bundle residential proxy software as well. Google says consumers can confirm whether or not a device is built with the official Android TV OS and Play Protect certification by following these instructions.

Additionally, Synthient maintains a running list of IoT devices that have been known to ship to consumers with residential proxy software and other malicious apps pre-installed. Careful readers will notice Synthient’s list includes other IoT devices apart from streaming sticks and boxes: As the FBI has warned, residential proxy software has also been found in other popular consumer IoT devices from random brands, particularly digital photo frames.

LG to Ban Residential Proxies from Smart TV Apps

2026-07-22 09:10:38

The home appliance giant LG Electronics USA said this week it plans to suspend any apps built for its smart TVs that turn one’s television into an always-on residential proxy node. The move comes less than a month after researchers found that more than 42 percent of games and other apps available for download on LG’s webOS store allow unknown third-parties to route their Internet traffic through a user’s TV.

Proxy SDK prevalence among smart TV apps for LG (webOS) and Samsung (Tizen OS) televisions. Image: Spur.us.

On July 2, we featured research by the security firm Spur that examined the prevalence of residential proxy software development kits (SDKs) in smart TV apps. Spur found more than 42 percent of apps available for download on LG smart TVs include SDKs that turn one’s television in a proxy node indefinitely, and that more than a quarter of the apps made for Samsung’s Tizen operating system had similar residential proxy components.

Responding to questions about Spur’s research, LG Senior Vice President John Taylor told KrebsOnSecurity the company was working with app developers to remove the residential proxy option from their apps on the webOS platform. Developers that fail to comply, he said, will find their apps suspended.

“A residential proxy network is not an intended use for LG smart TVs, and LG Electronics is working with developers to remove the residential proxy option from their apps on the webOS platform,” Taylor said. “If this option is not removed, these apps will be suspended.”

Taylor said LG is committed to keeping residential proxy networks out of its smart TV apps going forward, and that the company’s review of those apps is “well underway now.”

“As part of our ongoing efforts to enhance platform quality and the user experience, LG will continue to strengthen our evaluation process for developer-submitted apps, including those that incorporate residential proxy SDKs,” Taylor wrote in an emailed statement.

App makers looking for ways to monetize their creations can turn to residential proxy providers, which pay developers to include SDKs that turn the user’s device into a residential proxy node that is rented to paying customers. In the case of LG and Samsung smart TVs, Spur found residential proxy SDKs bundled with everything from simple games like Pac-Man to screensavers and file utilities.

A Pac-Man smart TV app from Bright Data offers users the choice between viewing ads in the game or agreeing to allow their TV to serve as a residential proxy node. Image: Spur.us.

Spur’s report found the residential proxy network Bright Data accounted for a majority of proxy SDKs across both Samsung and LG smart TVs. In a statement shared with KrebsOnSecurity, Bright Data said its network is built on consent and responsibility and operates by LG and Samsung terms.

“Every peer opts in through a dedicated screen and receives value in return; every customer is vetted, and our practices have now undergone a second independent audit by PwC,” the statement reads. “We remain committed to an open, transparent internet where legitimate businesses, researchers, and institutions can responsibly access data that lives in the public domain.”

Bright Data and other proxy providers named in Spur’s report all say they follow rigorous know-your-customer processes to validate legitimate uses of their services, which is often heavily tied to content-scraping activities by said customers. The proxy companies also say they incorporate technological countermeasures to prevent proxy service customers from being able to interact with and control other devices on the proxy user’s local network.

Spur argues the problem is not that residential proxy networks exist, but rather that they are being embedded at scale in devices that most consumers do not think of as computers and are not equipped to audit.

“A one-time consent prompt buried in a TV app is not a substitute for meaningful transparency, ongoing control, and platform oversight,” Spur’s Trevor Sutter wrote. “The risk is amplified when consent comes from individuals within the household who use the device but shouldn’t give consent, such as minors.”

LG’s announcement that it is culling residential proxy SDKs from its app store is welcome news, but the company recently came under fire for another questionable partnership: Pimping McAfee security products via software drivers included in its high-end LCD monitors.

Earlier this week, the Youtube channel Gamers Nexus showed that certain LG LCD monitors will automatically install an app that promotes paid McAfee antivirus subscriptions, and that the app arrives through Windows Update without an approval prompt.

Update, July 22, 1:06 p.m. ET: Added statement from Bright Data.