The FBI is probing whether a subsidiary of data-collection firm Alarum Technologies secretly enrolled customers' home internet devices into a network used to mask user locations. Bloomberg News obtained documents confirming the investigation.
Federal investigators are examining whether Alarum Technologies and its subsidiary orchestrated the covert enrollment of residential internet-connected devices into a proxy network without user authorization.
According to sources familiar with the matter, customers' home devices—routers, smart home systems, and other connected hardware—were allegedly linked together to create infrastructure that allows users to disguise their true geographic locations online.
The network appears to have been built by repurposing existing customer hardware without explicit consent, raising significant privacy and security concerns. Such proxy networks are frequently used to circumvent geographic restrictions, mask browsing activity, or facilitate other online activities that users may wish to hide.
Alarum Technologies specializes in data collection, positioning itself as a business intelligence firm. The company's subsidiary's involvement in this scheme suggests the practice may have been deliberate corporate strategy rather than isolated misconduct.
The investigation underscores growing scrutiny over how tech companies handle customer devices and data. Regulators and law enforcement have increasingly targeted unauthorized use of home networks, which can degrade performance, consume bandwidth, and expose users to security risks.
This case adds to mounting pressure on data-collection firms to demonstrate transparency in how they access and utilize customer information and hardware. Previous investigations have revealed similar practices by residential proxy networks, which operate by leveraging distributed home internet connections.
The FBI has not disclosed the investigation's timeline or whether charges are anticipated. Neither Alarum Technologies nor its subsidiary has made public statements regarding the probe.
The matter highlights the vulnerability of connected home devices and the potential for exploitation when terms of service are vague or inadequately enforced. Customers unknowingly providing computing resources for proxy networks may face bandwidth throttling, legal liability if their devices are used for illicit purposes, and privacy violations.
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