Researchers have identified a new cyber threat group known as Lurking Lizard, which has been running a malicious residential proxy service since at least August 2022. This operation utilizes over 230 fake domains that mimic legitimate software, specifically targeting users looking to download 7-Zip, a popular file compression tool. Instead of the genuine software, unsuspecting users end up installing a malicious version that turns their devices into proxy nodes. This not only compromises the users' systems but also allows the attackers to route internet traffic through these hijacked devices, potentially masking their own activities. The scale of this operation raises concerns about user privacy and the security of the internet at large.