Comment by hananova

There are "live" residential proxy IP lists you can purchase today from a variety of companies. Various companies defending use them as an additional data point when making a call to throw a captcha or block.

ISPs have been fairly silent on the topic (it is a hot topic for many of them due to the kimwolf botnet leveraging resiproxies to function and launching attacks). In many cases, being a resiproxy is a violation of the TOS - but they struggle with enforcement and how to do customer engagement given that most resiproxies are loaded without the end user knowing. So you have an educational problem - how does an end user figure out how to remove it.

Some ISPs could null the resiproxy c2 infra - and a few have played in that space.

Home router vendors could play their part and notify users exactly which device is connecting out and give them an option to isolate, etc.

No? The companies which are now losing sales because a bunch of their customers are blocked would simply stop using those lists.

If residential IPs were blocked, cutting off innocent users from services as IPs rotate, customers would bring lawsuits against ISPs and cell providers. Blocked IPs would have to be parked. Impacted users would rush to VPNs and other privacy tools, damaging the ad industry that is the backbone of most big tech. Everyone would rather deal with today's problems than that chaos.