Traffic Encryption via Proxy: How to Protect Your Data When Working with Facebook Ads and Instagram

When you work with dozens of Facebook Ads accounts or manage client profiles on Instagram, data security is not just a comfort parameter but a critical factor for business survival. One intercepted password or access token can lead to the loss of all accounts, leaked creatives to competitors, or theft of advertising budgets. Yet, many specialists still do not understand how traffic encryption through proxies works and which protection methods actually work and which only create an illusion of security.

In this guide, we will explore all levels of traffic encryption when working through proxy servers: from basic HTTPS to combined schemes with VPN. You will learn which data remains unprotected even when using SOCKS5, why HTTP proxies are dangerous for arbitrage, and how to properly set up encryption in anti-detect browsers like Dolphin Anty, AdsPower, and Multilogin.

Why Encryption is Critical for Arbitrage and SMM

Imagine a situation: you are an arbitrageur managing 15 Facebook Ads accounts with a total budget of $50,000 per month. You work from a coworking space over shared Wi-Fi, use proxies to separate accounts, but do not think about traffic encryption. At this moment, anyone in the same network with basic skills can intercept your traffic and gain access to authorization tokens, creatives, targeting settings, and payment data.

For SMM specialists, the risks are no less. If you manage client accounts on Instagram or TikTok, a data leak of authorization means not just losing an account — it’s a reputational blow, financial losses for the client, and potential lawsuits. Yet many still use HTTP proxies (without encryption) or mistakenly believe that SOCKS5 automatically protects all data.

The main threats in the absence of traffic encryption include:

• Interception of passwords and access tokens — even if the site uses HTTPS, request metadata can reveal confidential information
• Theft of advertising creatives and strategies — competitors can see which offers you are testing and which combinations are working
• Data tampering on the fly — a Man-in-the-Middle attack allows altering page content and injecting malicious code
• De-anonymization through DNS requests — even through proxies, your real IP can leak through unencrypted DNS requests
• Account bans by platforms — Facebook and Instagram analyze traffic patterns and ban accounts with suspicious signs

Encryption is especially critical for those working with financial data: linking cards to advertising accounts, topping up balances, withdrawing funds from affiliate programs. One intercepted request can lead to theft of money directly from the card or hacking of payment accounts.

Three Levels of Encryption: What Each Protects

Traffic encryption when working through proxies can be divided into three levels, each protecting different types of data. Understanding these levels is critically important for choosing the right protection strategy.

Level 1: Application Layer Encryption (HTTPS)

This is the basic level of protection provided by the site or application itself. When you open facebook.com or instagram.com, the browser establishes an HTTPS connection (SSL/TLS) that encrypts all data between your device and Facebook's server. It is important to understand: this encryption works independently of the proxy — even if you use a regular HTTP proxy, the data between the browser and Facebook remains encrypted.

What HTTPS protects:

• Logins and passwords during authorization
• Content of messages and posts
• Advertising campaign settings
• Payment data when topping up balance
• API access tokens

What HTTPS does NOT protect:

• Domain names of the sites you visit (visible in DNS requests)
• IP addresses of the servers you connect to
• Size of transmitted data (can determine the type of activity)
• Time and frequency of requests (behavior patterns)

Level 2: Channel Encryption to Proxy (HTTPS/SOCKS5)

This level protects traffic between your device and the proxy server. If you use an HTTPS proxy or SOCKS5 with additional encryption, a malicious actor in your local network (e.g., in public Wi-Fi) will not be able to see which sites you are accessing and what data you are transmitting.

An important point: standard SOCKS5 does not encrypt traffic — it only tunnels it. Additional configuration is needed for encryption (SSH tunnel or VPN).

Level 3: Full Encryption (VPN Over Proxy)

The maximum level of protection is achieved by combining VPN and proxy. In this case, all traffic is encrypted twice: first, the VPN encrypts all data (including DNS requests), then they pass through the proxy server. This scheme protects even against attacks at the provider or proxy owner level.

HTTPS Proxies: Basic Protection and Its Limitations

HTTPS proxies (also known as HTTP CONNECT or SSL proxies) are proxy servers that establish an encrypted connection between your device and the proxy. This is the most common type of proxy for working with browsers and anti-detect systems.

How HTTPS proxies work: when you connect to a site through an HTTPS proxy, the browser first sends the proxy a CONNECT command, specifying the destination domain (e.g., facebook.com:443). The proxy establishes a connection with Facebook's server and creates an encrypted tunnel. After that, all data between the browser and Facebook is transmitted in encrypted form — the proxy simply passes it through without being able to read the content.

Advantages of HTTPS proxies for arbitrage:

• Protection against interception in local networks — if you work from a café, coworking space, or hotel, no one in that network will see which sites you visit
• Compatibility with all browsers — support is built into Chrome, Firefox, and all anti-detect browsers (Dolphin Anty, AdsPower, Multilogin)
• No additional software required — configured directly in the browser or anti-detect
• Works with any sites — unlike VPNs, not blocked by platforms

Limitations of HTTPS proxies:

• Proxy owner sees metadata — which domains you connect to, at what time, volume of traffic. This can be critical when working on confidential projects
• DNS requests may leak — if the browser is misconfigured, DNS requests go directly to the provider, bypassing the proxy. This reveals the list of sites
• No WebRTC protection — WebRTC technology can reveal your real IP address even when using a proxy. Requires disabling in the browser
• Vulnerability to proxy attacks — if the proxy server is compromised, a malicious actor can intercept data

For most arbitrage and SMM tasks, residential HTTPS proxies provide a sufficient level of protection. They hide your real IP, protect against interception in public networks, and do not raise suspicions with platforms like Facebook or Instagram.

SOCKS5 and Encryption: Debunking Myths

One of the most common myths among arbitrageurs is that SOCKS5 automatically encrypts traffic. This is not true. SOCKS5 is a tunneling protocol that passes any type of traffic (HTTP, HTTPS, FTP, torrents) through it, but does not add encryption. If the application does not use its own encryption (for example, HTTPS), the data is transmitted in plain text.

How SOCKS5 works: it is a low-level proxy protocol that operates at the session layer (Session Layer in the OSI model). When you set up SOCKS5 in a browser or application, all network traffic from that application is redirected through the proxy server. SOCKS5 simply forwards data packets without analyzing or modifying their content.

Advantages of SOCKS5 for arbitrage:

• Versatility — works with any applications: browsers, Telegram, scrapers, bots
• UDP support — unlike HTTP proxies, SOCKS5 can tunnel UDP traffic (needed for some VoIP and gaming applications)
• No data modification — SOCKS5 does not change HTTP headers, which reduces the risk of detection by platforms
• Authentication — supports username/password for proxy access
• Less overhead — SOCKS5 adds less overhead data than HTTPS proxies

When SOCKS5 is safe:

• You only work with HTTPS sites (facebook.com, instagram.com, tiktok.com — all use HTTPS)
• You use applications with built-in encryption (Telegram, WhatsApp, Signal)
• You combine SOCKS5 with VPN (VPN encrypts all traffic to the proxy)
• You work from a trusted network (home internet, office with secure Wi-Fi)

When SOCKS5 is dangerous:

• Working from public Wi-Fi networks (airports, cafés, hotels) — traffic to the proxy is transmitted unencrypted
• Using HTTP sites or applications without SSL
• Transmitting confidential data (payment information, passwords) through unencrypted applications
• Working with unreliable proxy providers (they may log and sell data)

For maximum security when using SOCKS5, it is recommended to combine it with an additional layer of encryption — either through VPN or SSH tunnel. This is especially important for arbitrageurs working with large budgets and SMM agencies managing client accounts.

VPN Over Proxy: Maximum Protection

The combination of VPN and proxy is a scheme used by professional arbitrageurs and teams working on confidential projects. The essence of the method: you connect to a VPN server that encrypts all your traffic (including DNS requests and metadata), and then this encrypted traffic passes through the proxy server.

The working scheme of VPN + proxy:

1. You launch a VPN client on your computer (e.g., WireGuard, OpenVPN)
2. All traffic from the computer is encrypted and sent to the VPN server
3. In the browser or anti-detect, you set up the proxy (SOCKS5 or HTTPS)
4. The traffic goes in a chain: your computer → VPN (encrypted) → proxy → target site

What double protection provides:

• Protection from the provider — your internet provider only sees encrypted VPN traffic and does not know which sites you visit
• Protection from the proxy owner — the proxy server receives already encrypted VPN traffic and cannot analyze the content
• DNS protection — all DNS requests go through the VPN tunnel and do not leak to the provider
• Protection from WebRTC — VPN blocks real IP leaks through WebRTC
• Risk separation — even if the VPN or proxy is compromised, the malicious actor will not get the full picture

Disadvantages of the VPN + proxy scheme:

• Complex setup — requires proper routing configuration to ensure traffic goes through VPN → proxy
• Speed reduction — double encryption and an additional node slow down the connection by 30-50%
• Additional costs — you need to pay for both VPN and proxy
• Risk of conflicts — some anti-detect browsers may not work correctly with an active VPN at the system level

An alternative scheme is a proxy with a built-in VPN: some proxy providers offer servers with a pre-installed VPN tunnel. You connect to such a proxy, and it automatically encrypts all traffic through VPN before sending it to the internet. This is easier to set up but less flexible than standalone configuration.

Setting Up Encryption in Anti-Detect Browsers

Anti-detect browsers (Dolphin Anty, AdsPower, Multilogin, GoLogin) are the main tools for arbitrageurs and SMM specialists to manage multiple accounts. Properly setting up encryption in these browsers is critical for security. Let’s consider a step-by-step configuration for each popular anti-detect.

Setting Up Proxy in Dolphin Anty

Dolphin Anty is one of the most popular anti-detects among Russian-speaking arbitrageurs due to its free plan for 10 profiles. Encryption setup:

1. Create a new profile — click "Create Profile" in the main Dolphin window
2. Select proxy type — in the "Proxy" section, choose HTTP (for HTTPS proxies) or SOCKS5. For maximum security, it is recommended to use HTTP with an SSL certificate from the provider
3. Enter proxy data — IP:port, username, password. Format for HTTPS: proxy.example.com:8080:username:password
4. Check WebRTC — in the profile settings, find "WebRTC" and select "Disabled" or "Alter" (spoofing). This is critical to prevent real IP leaks
5. Configure DNS — enable the "DNS through proxy" option (if available in your version) to prevent DNS requests from leaking to the provider
6. Check the connection — click "Check Proxy". Dolphin will show the IP, country, and any leaks

Additional security settings in Dolphin:

• Enable "Do Not Track" in the profile settings
• Disable geolocation (or spoof it to the coordinates of the proxy country)
• Set Canvas Fingerprint to "Noise" (adding noise to the fingerprint)
• Select a User-Agent that matches the proxy geo (for example, for the USA — the English version of Chrome)

Setting Up Proxy in AdsPower

AdsPower is popular among e-commerce specialists and arbitrageurs working with Asian platforms (AliExpress, TikTok). Encryption setup:

1. Open the profile manager — click "New Profile" in the main window
2. Select proxy protocol — AdsPower supports HTTP, HTTPS, SOCKS5. For Facebook/Instagram, choose HTTP (HTTPS), for TikTok — SOCKS5
3. Enter the proxy in the format — IP:Port:Username:Password or use the built-in proxy manager
4. Set up IP checking — enable "Check Proxy IP" for automatic verification
5. Disable WebRTC — in the "Advanced Settings" section → "WebRTC", select "Disabled"
6. Configure Canvas and Audio — select "Noise" for Canvas and AudioContext Fingerprint

AdsPower has a built-in "Proxy Manager" feature that allows you to save proxy lists and quickly switch between them. This is very convenient for working with proxy rotation.

Setting Up Proxy in Multilogin

Multilogin is a premium anti-detect with the most advanced fingerprinting, used by teams with large budgets ($50k+ per month). Setup:

1. Create a profile — choose the type of browser (Mimic based on Chrome or Stealthfox based on Firefox)
2. Set up the proxy — in the "Connection" section, select the type (HTTP/SOCKS5) and enter the data
3. Enable DNS over Proxy — a critically important option in Multilogin, ensures that DNS goes through the proxy
4. Set up WebRTC Leak Protection — select "Disabled" or "Custom" with spoofing the IP to the proxy IP
5. Check using the built-in test — Multilogin shows a detailed report on IP, DNS, WebRTC leaks

Multilogin also supports automatic proxy rotation via API — you can set up IP changes every N minutes or at each profile launch.

Critical Mistakes When Working with Unencrypted Traffic

Even experienced arbitrageurs and SMM specialists make mistakes in encryption setup that lead to account losses, data leaks, or budget theft. Let’s review the most common and dangerous ones.

Mistake 1: Using HTTP Proxies for Confidential Tasks

HTTP proxies (without SSL) transmit all traffic in plain text. If you work with Facebook Ads through HTTP proxies, Facebook itself is protected by HTTPS, but the proxy owner sees all your requests: which pages you access, what parameters you transmit, when and how often you work. This is critical if you use cheap public proxies — their owners can sell logs or use them for competitive intelligence.

Solution: use only HTTPS proxies (HTTP with SSL) or SOCKS5 in combination with VPN. For arbitrage, residential proxies with HTTPS support are recommended — they provide both high trust and data protection.

Mistake 2: Ignoring DNS Leaks

DNS requests are queries to servers to convert domain names (facebook.com) into IP addresses. By default, browsers send DNS requests to the provider's servers, even if you are using a proxy. This means that the provider sees the complete list of all sites you visit, even through a proxy.

For arbitrageurs, this is especially dangerous: if you work with prohibited topics (gambling, crypto, nutra), the provider may hand over logs at the request of law enforcement or block access.

Solution: enable "DNS over Proxy" in the anti-detect browser or use DNS over HTTPS (DoH) with Cloudflare (1.1.1.1) or Google (8.8.8.8) servers. You can check for leaks at dnsleaktest.com.

Mistake 3: WebRTC Not Disabled

WebRTC (Web Real-Time Communication) is a technology for video calls and P2P connections directly in the browser. The problem: WebRTC can bypass proxies and reveal your real IP address directly to the site. Facebook, Google, and other platforms actively use WebRTC to detect proxies and VPNs.

Real case: an arbitrageur set up a US proxy in Dolphin Anty but forgot to disable WebRTC. Facebook identified the real IP from Russia through WebRTC, matched it with the US proxy IP, and banned all accounts for suspicious activity. Loss — 12 accounts with a total budget of $8,000.

Solution: in the anti-detect browser settings, select WebRTC = "Disabled" or "Alter" (spoofing the IP to the proxy IP). You can check for leaks at browserleaks.com/webrtc.

Mistake 4: Mixing Accounts with Different Levels of Encryption

If you manage multiple Facebook accounts and some of them are opened through HTTPS proxies while others are through an unprotected connection, Facebook may link these accounts through behavior patterns and ban them all at once (chain-ban).

Solution: use a unified encryption scheme for all accounts within one project. If you are working with proxies — all accounts only through proxies, if VPN — all through VPN.

Mistake 5: Storing Passwords in Unencrypted Files

Many arbitrageurs store logins, passwords, and proxy data in plain text files or Excel spreadsheets on their computers. If the computer is infected with a trojan or stolen, malicious actors gain instant access to all accounts.

Solution: use password managers with encryption (1Password, Bitwarden, KeePass). For proxy data, create encrypted containers (VeraCrypt) or store them in the cloud with two-factor authentication.

Conclusion

Traffic encryption when working through proxies is not an optional setting for paranoids, but a mandatory requirement for any specialist working with multiple accounts, advertising budgets, or confidential client data. We have discussed three levels of protection: basic HTTPS (operates at the site level), HTTPS proxies (protects the channel to the proxy), and VPN over proxy (maximum protection for all data).

For most arbitrage tasks in Facebook Ads, Instagram, and TikTok, it is sufficient to use quality HTTPS proxies with the correct setup of the anti-detect browser: disabling WebRTC, DNS through proxy, spoofing geolocation, and Canvas Fingerprint. This provides a balance between security and ease of work, without slowing down the connection or complicating the setup.

For working on particularly confidential projects (gambling, crypto, finance) or when working from public networks, a combination of VPN + proxy is recommended. Yes, it is more expensive and slower, but it guarantees protection against interception at all levels: provider, proxy owner, public network, platform.

The main thing is to avoid critical mistakes: do not use HTTP proxies without SSL for confidential tasks, always check for DNS and WebRTC leaks, and do not store passwords in plain text. One moment of inattention can cost you all accounts and months of work.

If you plan to work with Facebook Ads, Instagram, or other platforms that require high trust and data protection, we recommend using residential proxies with HTTPS — they provide real IPs of home users, support encryption, and minimize the risk of bans. For mobile platforms (TikTok, Instagram), mobile proxies are optimal, which have maximum trust with detection algorithms.