Observed Signal · Aug 3, 2026 · Policy Update · Source: techcrunch · Impact: 4/5 · Sentiment: Positive
Samsung Bans Smart TV Apps Using Residential Proxies
Norwegian security firm Mnemonic published research showing several popular Samsung smart TV apps include code that can turn TVs into residential proxy exit nodes, allowing outsiders to route web traffic through users' home connections. Mnemonic found resproxy code in apps including a Pac-Man game that Samsung had featured in its Editor’s Choice. After being contacted by TechCrunch, Samsung said it is banning apps that share users’ internet connections, restricting new app registrations with proxy functionality, and removing existing apps that contain residential proxy SDKs. The report links the resproxy phenomenon to large-scale web scraping and other malicious activity; Bright Data’s resproxy code was identified in the Pac-Man app. The article notes LG recently announced a similar ban after reporting found many apps in its store participating in resproxy networks.
A major smart-TV platform (Samsung) issued a policy banning residential-proxy functionality after research revealed widespread abuse risk across app stores and connected devices; this affects CTV security, app-store governance, and fraud/scraping vectors relevant to the ad ecosystem.
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Key Takeaways & Evidence Grounding
- Norwegian cybersecurity company Mnemonic published research finding smart TV apps that can share owners’ internet connections via residential proxy networks.
- Samsung said it is banning apps that share users’ internet connections, restricting new app registrations with proxy functionality, and removing existing apps containing residential proxy SDKs.
- Mnemonic found resproxy code from Bright Data inside a Pac-Man smart TV game that Samsung had featured in its Editor’s Choice section.
- LG announced a ban on apps containing resproxy software the month prior after reporting showed a large share of apps enlisted TVs into proxy networks.
- Resproxy-equipped apps can turn devices into always-on exit nodes used for large-scale web scraping and other potentially malicious activities.
Connected Companies & Entities
5 Entities mapped“After TechCrunch contacted Samsung with a request for comment about the research, the electronics giant said in an emailed statement that it...”
“He found the Pac-Man game contained resproxy code from Bright Data, an Israel-based company that provides proxy networks touting access to m...”
“The move comes after LG said last month that it would ban apps that contain resproxy software after recent reporting found that around 42% o...”
“After TechCrunch contacted Samsung with a request for comment about the research, the electronics giant said in an emailed statement that it...”
“With access to the network data flowing through his smart TV, Sand could see that much of it appeared to suggest the resproxy network was us...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
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FAST Fraud Risks: Turning TVs Into Botnets?
The roundup discusses growing concerns around FAST (free ad-supported streaming TV) and related fraud risks. A Puck report questions the sustainability of FAST given opaque inventory and impression-level nondisclosure that leaves advertisers uncertain about when and where ads run. Bright Data offers a solution for streaming publishers: an SDK that lets viewers opt to route activity through residential proxies (Bright Data says it operates 150 million proxies) to hide bot activity in exchange for ad-free viewing; the SDK supports Samsung’s Tizen and LG’s webOS and Bright Data has published 200 apps to LG’s app store. IAS uncovered a fraud network named “Genisys” that generated invalid traffic from 25 million mobile devices to 500 AI-generated domains; after coordinating with IAS, Google removed at least 115 infected apps from Google Play, cutting fraudulent bid requests by 95%. The piece also lists M&A, platform, and hiring headlines.
Samsung Patent to Auto-Hide TV Spoilers
Samsung filed a patent for smart TV technology that detects and conceals potential spoilers in on-screen search results. The system, described in a patent application published in late July 2026, uses a dedicated "spoiler prevention mode" that evaluates search queries, fetches results from external sources to local memory, scans text and images for spoiler content, and hides or blurs flagged segments before rendering results to the viewer. Filtering is performed entirely on-device so it does not rely on external sites or streaming services to label spoilers. The filing lists four inventors and names Samsung Electronics as the applicant; the application is docketed for examination with a medium likelihood of grant. The article was published by Cord Cutters News on 2026-08-05.
LG Smart TVs Reportedly Spy on Users, Collecting Audio and Data
An investigation by Gamers Nexus and Level1Techs reveals that LG Smart TVs engage in extensive surveillance, capturing audio transcripts and video via webcams, even when the TV is in standby mode. The TVs use Automatic Content Recognition (ARC) to collect viewing habits and search queries for personalized ads, but researchers found they also transmit private conversations containing sensitive information like social security and credit card numbers to LG's servers. Additionally, the devices scan nearby Wi-Fi networks and connected devices, and collect Wi-Fi signal data. LG's ad solutions unit claims data from over 216 million devices globally is available for advertising. Users are advised to disconnect the TV from the internet entirely (Ethernet or Wi-Fi) to prevent data transmission.
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