> If you ban a residential proxy IP you're likely to impact real users while the bad actor simply switches.
Are you really? How likely do you think is a legit customer/user to be on the same IP as a residential proxy? Sure residential IPS get reused, but you can handle that by making the block last 6-8 hours, or a day or two.
Very likely. You can voluntarily run one to make ~$10/month in cryptocurrency. Many others are botnets. They aren't signing up for new internet connections solely to run proxies on.
Are you really? How likely do you think is a legit customer/user to be on the same IP as a residential proxy? Sure residential IPS get reused, but you can handle that by making the block last 6-8 hours, or a day or two.