A new Internet-of-Things (IoT) botnet called Kimwolf has spread to more than 2 million devices, forcing infected systems to participate in massive distributed denial-of-service (DDoS) attacks and to relay other malicious and abusive Internet traffic. Kimwolf’s ability to scan the local networks of compromised systems for other IoT devices to infect makes it a sobering threat to organizations, and new research reveals Kimwolf is surprisingly prevalent in government and corporate networks.

Image: Shutterstock, @Elzicon.

Kimwolf grew rapidly in the waning months of 2025 by tricking various “residential proxy” services into relaying malicious commands to devices on the local networks of those proxy endpoints. Residential proxies are sold as a way to anonymize and localize one’s Web traffic to a specific region, and the biggest of these services allow customers to route their Internet activity through devices in virtually any country or city around the globe.

The malware that turns one’s Internet connection into a proxy node is often quietly bundled with various mobile apps and games, and it typically forces the infected device to relay malicious and abusive traffic — including ad fraud, account takeover attempts, and mass content-scraping.

Kimwolf mainly targeted proxies from IPIDEA, a Chinese service that has millions of proxy endpoints for rent on any given week. The Kimwolf operators discovered they could forward malicious commands to the internal networks of IPIDEA proxy endpoints, and then programmatically scan for and infect other vulnerable devices on each endpoint’s local network.

Most of the systems compromised through Kimwolf’s local network scanning have been unofficial Android TV streaming boxes. These are typically Android Open Source Project devices — not Android TV OS devices or Play Protect certified Android devices — and they are generally marketed as a way to watch unlimited (read:pirated) video content from popular subscription streaming services for a one-time fee.

However, a great many of these TV boxes ship to consumers with residential proxy software pre-installed. What’s more, they have no real security or authentication built-in: If you can communicate directly with the TV box, you can also easily compromise it with malware.

While IPIDEA and other affected proxy providers recently have taken steps to block threats like Kimwolf from going upstream into their endpoints (reportedly with varying degrees of success), the Kimwolf malware remains on millions of infected devices.

A screenshot of IPIDEA’s proxy service.

Kimwolf’s close association with residential proxy networks and compromised Android TV boxes might suggest we’d find relatively few infections on corporate networks. However, the security firm Infoblox said a recent review of its customer traffic found nearly 25 percent of them made a query to a Kimwolf-related domain name since October 1, 2025, when the botnet first showed signs of life.

Infoblox found the affected customers are based all over the world and in a wide range of industry verticals, from education and healthcare to government and finance.

“To be clear, this suggests that nearly 25% of customers had at least one device that was an endpoint in a residential proxy service targeted by Kimwolf operators,” Infoblox explained. “Such a device, maybe a phone or a laptop, was essentially co-opted by the threat actor to probe the local network for vulnerable devices. A query means a scan was made, not that new devices were compromised. Lateral movement would fail if there were no vulnerable devices to be found or if the DNS resolution was blocked.”

Synthient, a startup that tracks proxy services and was the first to disclose on January 2 the unique methods Kimwolf uses to spread, found proxy endpoints from IPIDEA were present in alarming numbers at government and academic institutions worldwide. Synthient said it spied at least 33,000 affected Internet addresses at universities and colleges, and nearly 8,000 IPIDEA proxies within various U.S. and foreign government networks.

The top 50 domain names sought out by users of IPIDEA’s residential proxy service, according to Synthient.

In a webinar on January 16, experts at the proxy tracking service Spur profiled Internet addresses associated with IPIDEA and 10 other proxy services that were thought to be vulnerable to Kimwolf’s tricks. Spur found residential proxies in nearly 300 government owned and operated networks, 318 utility companies, 166 healthcare companies or hospitals, and 141 companies in banking and finance.

“I looked at the 298 [government] owned and operated [networks], and so many of them were DoD [U.S. Department of Defense], which is kind of terrifying that DoD has IPIDEA and these other proxy services located inside of it,” Spur Co-Founder Riley Kilmer said. “I don’t know how these enterprises have these networks set up. It could be that [infected devices] are segregated on the network, that even if you had local access it doesn’t really mean much. However, it’s something to be aware of. If a device goes in, anything that device has access to the proxy would have access to.”

Kilmer said Kimwolf demonstrates how a single residential proxy infection can quickly lead to bigger problems for organizations that are harboring unsecured devices behind their firewalls, noting that proxy services present a potentially simple way for attackers to probe other devices on the local network of a targeted organization.

“If you know you have [proxy] infections that are located in a company, you can chose that [network] to come out of and then locally pivot,” Kilmer said. “If you have an idea of where to start or look, now you have a foothold in a company or an enterprise based on just that.”

This is the third story in our series on the Kimwolf botnet. Next week, we’ll shed light on the myriad China-based individuals and companies connected to the Badbox 2.0 botnet, the collective name given to a vast number of Android TV streaming box models that ship with no discernible security or authentication built-in, and with residential proxy malware pre-installed.

Further reading:

The Kimwolf Botnet is Stalking Your Local Network

Who Benefitted from the Aisuru and Kimwolf Botnets?

A Broken System Fueling Botnets (Synthient).

Direct navigation — the act of visiting a website by manually typing a domain name in a web browser — has never been riskier: A new study finds the vast majority of “parked” domains — mostly expired or dormant domain names, or common misspellings of popular websites — are now configured to redirect visitors to sites that foist scams and malware.

A lookalike domain to the FBI Internet Crime Complaint Center website, returned a non-threatening parking page (left) whereas a mobile user was instantly directed to deceptive content in October 2025 (right). Image: Infoblox.

When Internet users try to visit expired domain names or accidentally navigate to a lookalike “typosquatting” domain, they are typically brought to a placeholder page at a domain parking company that tries to monetize the wayward traffic by displaying links to a number of third-party websites that have paid to have their links shown.

A decade ago, ending up at one of these parked domains came with a relatively small chance of being redirected to a malicious destination: In 2014, researchers found (PDF) that parked domains redirected users to malicious sites less than five percent of the time — regardless of whether the visitor clicked on any links at the parked page.

But in a series of experiments over the past few months, researchers at the security firm Infoblox say they discovered the situation is now reversed, and that malicious content is by far the norm now for parked websites.

“In large scale experiments, we found that over 90% of the time, visitors to a parked domain would be directed to illegal content, scams, scareware and anti-virus software subscriptions, or malware, as the ‘click’ was sold from the parking company to advertisers, who often resold that traffic to yet another party,” Infoblox researchers wrote in a paper published today.

Infoblox found parked websites are benign if the visitor arrives at the site using a virtual private network (VPN), or else via a non-residential Internet address. For example, Scotiabank.com customers who accidentally mistype the domain as scotaibank[.]com will see a normal parking page if they’re using a VPN, but will be redirected to a site that tries to foist scams, malware or other unwanted content if coming from a residential IP address. Again, this redirect happens just by visiting the misspelled domain with a mobile device or desktop computer that is using a residential IP address.

According to Infoblox, the person or entity that owns scotaibank[.]com has a portfolio of nearly 3,000 lookalike domains, including gmai[.]com, which demonstrably has been configured with its own mail server for accepting incoming email messages. Meaning, if you send an email to a Gmail user and accidentally omit the “l” from “gmail.com,” that missive doesn’t just disappear into the ether or produce a bounce reply: It goes straight to these scammers. The report notices this domain also has been leveraged in multiple recent business email compromise campaigns, using a lure indicating a failed payment with trojan malware attached.

Infoblox found this particular domain holder (betrayed by a common DNS server — torresdns[.]com) has set up typosquatting domains targeting dozens of top Internet destinations, including Craigslist, YouTube, Google, Wikipedia, Netflix, TripAdvisor, Yahoo, eBay, and Microsoft. A defanged list of these typosquatting domains is available here (the dots in the listed domains have been replaced with commas).

David Brunsdon, a threat researcher at Infoblox, said the parked pages send visitors through a chain of redirects, all while profiling the visitor’s system using IP geolocation, device fingerprinting, and cookies to determine where to redirect domain visitors.

“It was often a chain of redirects — one or two domains outside the parking company — before threat arrives,” Brunsdon said. “Each time in the handoff the device is profiled again and again, before being passed off to a malicious domain or else a decoy page like Amazon.com or Alibaba.com if they decide it’s not worth targeting.”

Brunsdon said domain parking services claim the search results they return on parked pages are designed to be relevant to their parked domains, but that almost none of this displayed content was related to the lookalike domain names they tested.

Samples of redirection paths when visiting scotaibank dot com. Each branch includes a series of domains observed, including the color-coded landing page. Image: Infoblox.

Infoblox said a different threat actor who owns domaincntrol[.]com — a domain that differs from GoDaddy’s name servers by a single character — has long taken advantage of typos in DNS configurations to drive users to malicious websites. In recent months, however, Infoblox discovered the malicious redirect only happens when the query for the misconfigured domain comes from a visitor who is using Cloudflare’s DNS resolvers (1.1.1.1), and that all other visitors will get a page that refuses to load.

The researchers found that even variations on well-known government domains are being targeted by malicious ad networks.

“When one of our researchers tried to report a crime to the FBI’s Internet Crime Complaint Center (IC3), they accidentally visited ic3[.]org instead of ic3[.]gov,” the report notes. “Their phone was quickly redirected to a false ‘Drive Subscription Expired’ page. They were lucky to receive a scam; based on what we’ve learnt, they could just as easily receive an information stealer or trojan malware.”

The Infoblox report emphasizes that the malicious activity they tracked is not attributed to any known party, noting that the domain parking or advertising platforms named in the study were not implicated in the malvertising they documented.

However, the report concludes that while the parking companies claim to only work with top advertisers, the traffic to these domains was frequently sold to affiliate networks, who often resold the traffic to the point where the final advertiser had no business relationship with the parking companies.

Infoblox also pointed out that recent policy changes by Google may have inadvertently increased the risk to users from direct search abuse. Brunsdon said Google Adsense previously defaulted to allowing their ads to be placed on parked pages, but that in early 2025 Google implemented a default setting that had their customers opt-out by default on presenting ads on parked domains — requiring the person running the ad to voluntarily go into their settings and turn on parking as a location.