One IP address, many users: detecting CGNAT to reduce collateral effects

IPv4 scarcity drives widespread use of Carrier-Grade Network Address Translation, a practice in ISPs and mobile networks that places many users behind each IP address, along with their collected activity and volumes of traffic. We introduce the method we’ve developed to detect large-scale IP sharing globally and mitigate the issues that result.

One IP address, many users: detecting CGNAT to reduce collateral effects

2025-10-29

Vasilis Giotsas

Marwan Fayed

13 min read

IP addresses have historically been treated as stable identifiers for non-routing purposes such as for geolocation and security operations. Many operational and security mechanisms, such as blocklists, rate-limiting, and anomaly detection, rely on the assumption that a single IP address represents a cohesive, accountable entity or even, possibly, a specific user or device.

But the structure of the Internet has changed, and those assumptions can no longer be made. Today, a single IPv4 address may represent hundreds or even thousands of users due to widespread use of Carrier-Grade Network Address Translation (CGNAT), VPNs, and proxy middleboxes. This concentration of traffic can result in significant collateral damage – especially to users in developing regions of the world – when security mechanisms are applied without taking into account the multi-user nature of IPs.

This blog post presents our approach to detecting large-scale IP sharing globally. We describe how we build reliable training data, and how detection can help avoid unintentional bias affecting users in regions where IP sharing is most prevalent. Arguably it's those regional variations that motivate our efforts more than any other.

Why this matters: Potential socioeconomic bias

Our work was initially motivated by a simple observation: CGNAT is a likely unseen source of bias on the Internet. Those biases would be more pronounced wherever there are more users and few addresses, such as in developing regions. And these biases can have profound implications for user experience, network operations, and digital equity.

The reasons are understandable for many reasons, not least because of necessity. Countries in the developing world often have significantly fewer available IPs, and more users. The disparity is a historical artifact of how the Internet grew: the largest blocks of IPv4 addresses were allocated decades ago, primarily to organizations in North America and Europe, leaving a much smaller pool for regions where Internet adoption expanded later.

To visualize the IPv4 allocation gap, we plot country-level ratios of users to IP addresses in the figure below. We take online user estimates from the World Bank Group and the number of IP addresses in a country from Regional Internet Registry (RIR) records. The colour-coded map that emerges shows that the usage of each IP address is more concentrated in regions that generally have poor Internet penetration. For example, large portions of Africa and South Asia appear with the highest user-to-IP ratios. Conversely, the lowest user-to-IP ratios appear in Australia, Canada, Europe, and the USA — the very countries that otherwise have the highest Internet user penetration numbers.

The scarcity of IPv4 address space means that regional differences can only worsen as Internet penetration rates increase. A natural consequence of increased demand in developing regions is that ISPs would rely even more heavily on CGNAT, and is compounded by the fact that CGNAT is common in mobile networks that users in developing regions so heavily depend on. All of this means that actions known to be based on IP reputation or behaviour would disproportionately affect developing economies.

Cloudflare is a global network in a global Internet. We are sharing our methodology so that others might benefit from our experience and help to mitigate unintended effects. First, let’s better understand CGNAT.

When one IP address serves multiple users

Large-scale IP address sharing is primarily achieved through two distinct methods. The first, and more familiar, involves services like VPNs and proxies. These tools emerge from a need to secure corporate networks or improve users' privacy, but can be used to circumvent censorship or even improve performance. Their deployment also tends to concentrate traffic from many users onto a small set of exit IPs. Typically, individuals are aware they are using such a service, whether for personal use or as part of a corporate network.

Separately, another form of large-scale IP sharing often goes unnoticed by users: Carrier-Grade NAT (CGNAT). One way to explain CGNAT is to start with a much smaller version of network address translation (NAT) that very likely exists in your home broadband router, formally called a Customer Premises Equipment (or CPE), which translates unseen private addresses in the home to visible and routable addresses in the ISP. Once traffic leaves the home, an ISP may add an additional enterprise-level address translation that causes many households or unrelated devices to appear behind a single IP address.

The crucial difference between large-scale IP sharing is user choice: carrier-grade address sharing is not a user choice, but is configured directly by Internet Service Providers (ISPs) within their access networks. Users are not aware that CGNATs are in use.

The primary driver for this technology, understandably, is the exhaustion of the IPv4 address space. IPv4's 32-bit architecture supports only 4.3 billion unique addresses — a capacity that, while once seemingly vast, has been completely outpaced by the Internet's explosive growth. By the early 2010s, Regional Internet Registries (RIRs) had depleted their pools of unallocated IPv4 addresses. This left ISPs unable to easily acquire new address blocks, forcing them to maximize the use of their existing allocations.

While the long-term solution is the transition to IPv6, CGNAT emerged as the immediate, practical workaround. Instead of assigning a unique public IP address to each customer, ISPs use CGNAT to place multiple subscribers behind a single, shared IP address. This practice solves the problem of IP address scarcity. Since translated addresses are not publicly routable, CGNATs have also had the positive side effect of protecting many home devices that might be vulnerable to compromise.

CGNATs also create significant operational fallout stemming from the fact that hundreds or even thousands of clients can appear to originate from a single IP address. This means an IP-based security system may inadvertently block or throttle large groups of users as a result of a single user behind the CGNAT engaging in malicious activity.

This isn't a new or niche issue. It has been recognized for years by the Internet Engineering Task Force (IETF), the organization that develops the core technical standards for the Internet. These standards, known as Requests for Comments (RFCs), act as the official blueprints for how the Internet should operate. RFC 6269, for example, discusses the challenges of IP address sharing, while RFC 7021 examines the impact of CGNAT on network applications. Both explain that traditional abuse-mitigation techniques, such as blocklisting or rate-limiting, assume a one-to-one relationship between IP addresses and users: when malicious activity is detected, the offending IP address can be blocked to prevent further abuse.

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