Have you considered the amount of private information revealed each time you visit a website or click on a link? Proxy servers can help limit that exposure by protecting your data and concealing your identity.

With the rise of cyber threats and invasive tracking, your online footprint can leave you vulnerable to unwanted scrutiny and data breaches. Silent monitoring of every online session could result in targeted advertisements, privacy violations, and cyberattacks.

Proxy servers act as an intermediary layer that manages your online requests. They offer basic privacy protection by masking your IP address while improving speed, reducing bandwidth usage, and helping you access content more conveniently.

In this article, we’ll explain what a proxy is, the different types of proxy servers, how they function, and why they play a key role in protecting your privacy and improving security online.

What is a proxy server?

A proxy server is an intermediary between your device and the Internet. It forwards your web requests to external websites and sends the responses back to you, often with added functions like content filtering, anonymity, or caching. This added layer helps enhance privacy, control traffic, and protect your network.

How does a proxy work?

Proxies provide anonymity and caching capabilities to speed up data retrieval and reduce bandwidth usage. This process masks your original IP address by substituting it with the proxy’s IP address.

Here’s how it works:

  1. Client Request: When you type in a URL or request data, your device sends a request to the proxy server.
  2. Request Forwarding: The proxy server receives the request and forwards it to the intended web server using its IP address.
  3. Web Server Response: The web server responds to the proxy server with the requested information.
  4. Data Delivery: The proxy server relays this information to your device.

Types of proxies and their use cases

Proxies come in different forms for different use cases. Each provides you with an intermediary IP address to access the internet. Understanding the various types of proxies will help you choose the right one based on your specifications:

1. Residential proxies

These proxies use IP addresses that homeowners receive from Internet Service Providers (ISPs). They are beneficial for tasks like market research, web scraping, managing online advertising campaigns, and other daily activities because they are perfect for users who need confirmed geographic IP addresses.

2. Data center proxies

Unlike residential proxies, data center proxies are not affiliated with ISPs. Instead, they use the IPs of specific data centers. Users may need to install the company’s proxy gateway software, which provides data center proxy services.

Once installed, they can access the internet using the IP addresses of the data center. They offer high speed and reliability, making them popular for tasks that require fast performance, though websites may more easily detect them.

3. Forward proxies

A forward proxy sits between internal users and the internet, filtering or blocking access based on organizational policies or compliance needs.

It is commonly used by businesses or schools to control web usage, restrict access to specific sites, or monitor internet traffic. While it offers strong control, it may not suit users requiring unrestricted access for tasks such as external API calls, real-time communication apps, or remote work scenarios necessitating open connectivity.

4. Transparent proxies

These proxies do not modify requests and are often used for content caching or filtering. Organizations use their transparency to monitor employee usage without disrupting the user experience.

5. Shared proxies

As the name suggests, a shared proxy is a network that multiple users share. Different users can use the same IP address to access various networks. The significant advantage of a shared proxy is its lower cost.

However, it may not be the best option from a security standpoint, as it is not isolated, and there is a higher risk of data leaks or compromised privacy.

6. Rotating proxies

They allow you to use the same device and continuously update its IP address. They are best suited for users who prefer anonymity while doing high-volume work.

7. Anonymous proxies

Designed for privacy, anonymous proxies conceal the client’s IP address while still revealing that a proxy is being used. They strike a balance between privacy and transparency.

8. High anonymity proxies (elite proxies)

These proxies do not reveal the client’s IP address or the fact that a proxy is being used. They provide the highest level of anonymity and are used for sensitive tasks.

Group-IB has found that cybercriminals frequently utilize residential and rotating proxies to execute phishing attacks and operate botnets. Our analysts regularly track these activities as part of global investigations.

The role of proxies in enhancing online security

Proxies serve as a barrier between potential threats and your internal network. Here’s how proxies enhance online security:

  • Traffic Filtering: Proxies can block access to malicious websites and filter harmful content before it reaches your device.
  • Anonymity: Proxies conceal your actual IP address, making it more challenging for attackers to track or target your device directly. This adds a layer of protection against threats like DDoS and targeted exploits.
  • Encryption Support: Some proxies offer encryption, which secures data transmission and prevents unauthorized access to sensitive information.
  • Monitoring and Logging: Proxies offer a strong first layer of defense, but misconfigured or hijacked proxies are often exploited to launch attacks, spread malware, or hide malicious traffic, making continuous monitoring essential.

Group-IB’s Advanced Digital Risk Protection helps security teams detect and respond to suspicious proxy behavior in real time, including tactics linked to botnets and web shells.

Benefits of using a proxy for businesses and individuals

Whether you are managing a business network or safeguarding your browsing, proxies offer a multitude of benefits:

1. Anonymous browsing

Proxies replace your real IP address with an alternate one to mask your identity online. This reduces the personal data shared with websites, advertisers, and potential attackers. Your digital footprint stays minimal, and your browsing activity remains private.

2. Bypassing geo-restrictions

Proxies can route your traffic through servers in other regions, allowing access to content that may be blocked in your location. This is commonly used to access region-specific content on platforms like Netflix or Prime Video.

3. Improved network performance

Proxy servers cache frequently accessed content to reduce load times and save bandwidth. This improves overall performance, especially in high-traffic environments. Your organization benefits from faster response times and more efficient resource usage.

4. Increased security

Proxies protect your device from external threats by filtering harmful traffic and blocking suspicious requests. When used with other tools, they strengthen your first line of defense against common attacks.

5. Smarter resource allocation

Businesses can use proxies alongside firewalls, intrusion detection systems, and endpoint tools for cost-effective protection. Integrated with Group-IB’s threat intelligence, they help detect threats early and respond faster.

6. Privacy control

Proxies hide device location and browsing behavior to prevent user profiling. Websites see only the proxy’s IP address instead of the user’s real one. This limits tracking and gives users stronger control over personal data exposure.

Proxy servers vs VPN: key differences

While both proxies and Virtual Private Networks (VPNs) provide online anonymity, they differ in several key ways:

Feature Proxy Server VPN
Encryption May or may not encrypt traffic Encrypts traffic between a device and the VPN server
Scope of Protection Routes only selected app/browser traffic Routes and encrypts all device internet traffic (unless configured for split tunneling)
Speed Generally faster due to less encryption overhead and simpler routing processes May be slower due to encryption overhead and extensive data processing
Typical Use Cases Bypassing geo-blocks, caching, and filtering content Comprehensive privacy, secure remote access, and anonymity

 

Proxies are ideal for casual browsing and everyday tasks, such as accessing region-specific content on platforms like Netflix, Prime Video, or Disney+. They offer a simple way to bypass geographic restrictions without requiring full-device encryption.

However, a VPN can be a good choice if you are a business professional or a remote worker regularly handling sensitive or proprietary information. For organizations requiring enhanced threat protection, solutions like Group-IB’s Digital Risk Protection offer a layered approach combining network graph, scam intelligence, and AI-powered threat detection.

We recommend using a hybrid defense model that combines proxies, VPNs, and behavioral analytics to help organizations better manage large data volumes and defend against targeted attacks.

What are common proxy protocols

There are different proxy protocols available in the market. The most common protocols include:

  • HTTP Proxy: Designed for web traffic, HTTP proxies are ideal for browsing and can accelerate load times by caching content.
  • HTTPS Proxy: Similar to HTTP proxies, HTTPS proxies add an additional layer of SSL encryption to ensure secure data transfer.
  • SOCKS Proxy: SOCKS stands for Socket Secure. This flexible protocol can handle email, FTP, and other types of internet traffic.
  • Transparent Proxy: Often used in corporate environments for content filtering and logging without requiring user configuration.

In our incident response engagements, we frequently encounter misconfigured SOCKS and HTTP proxies that are being exploited for lateral movement, internal reconnaissance, and data exfiltration.

For instance, if authentication is not enforced correctly or if ports are left exposed, attackers can reroute internal traffic or gain unauthorized access to systems. Understanding these protocol-specific risks is essential for tightening your network defenses.

How to choose the right proxy for your needs

Here are a few crucial elements to help you decide what is the best proxy for your needs:

  • Purpose: Assess whether you require a proxy to improve security, circumvent geo-restrictions, or remain anonymous.
  • Type of Proxy: Depending on your needs, choose between residential, data center, or high anonymity proxies.
  • Speed and Performance: Consider the load times and response rates. For instance, data center proxies are often faster but might be easier to detect.
  • Cost: Compare your spending plan to the various proxy providers’ pricing schemes.
  • Security Features: Ensure the proxy offers strong security measures, such as encryption and threat monitoring, especially if you manage sensitive data. Furthermore, identifying indicators of attack (IoA) can strengthen cybersecurity measures.
  • Compatibility: Verify that the proxy integrates seamlessly with your network infrastructure and security solutions.

How Group-IB helps organizations with advanced digital risk protection

Proxies play a crucial role in defending against external threats; however, in today’s hyper-connected environment, relying solely on them is no longer sufficient. A more layered, proactive approach is essential to staying ahead of increasingly sophisticated cyberattacks.

At Group-IB, we combine real-time analytics with deep infrastructure visibility to identify and neutralize proxy-based threats. Our Threat Intelligence platform continuously monitors malicious infrastructure, helping organizations detect abnormal proxy usage patterns often linked to phishing, botnets, and scam operations.

Through Digital Risk Protection, we support phishing and scam mitigation efforts across web, social, and mobile channels, while providing insight into emerging campaigns leveraging proxies to mask attacker behavior. Our incident response experts also track indicators of attack (IoA) such as proxy misconfigurations, chaining techniques, and traffic anomalies, enabling faster threat discovery and mitigation.

Group-IB’s Unified Risk Platform integrates multiple defense layers from web shell detection to botnet monitoring, ensuring that proxy-based attacks are detected and addressed at their root.

Whether you’re looking to strengthen digital resilience, reduce exposure, or better understand proxy-related threats, Group-IB’s intelligence-led approach helps you stay a step ahead. Explore how our Digital Risk Protection and Threat Intelligence solutions can help you effectively monitor, detect, and mitigate proxy threats.