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Is there a way to use a device like a raspberrypi to create a kind of 'Plug and Play' TOR proxy?

Ideally, a device would exist with an ethernet port as input and ethernet cable or USB as output which can be plugged into a laptop or PC without any further configuration on the client PC.

The device should then automatically act like a proxy, directing all network traffic through TOR.

Note that I am not asking for a proxy which would then need to be configured on the client system (i.e. in the proxy settings of the browser) but a hardware device that guarantees that no traffic from the client system can go through the clearnet as long as it's connected in the middle between the client system and the router.

Is this possible and if it is, are there any apparent security concerns with this approach?

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You could also use a travel router which supports openwrt, in most cases they have enough space to install tor. There are also cheap single board computers with two ethernet connections. What you are looking for is called a transparent proxy:

https://trac.torproject.org/projects/tor/wiki/doc/TransparentProxy

It boils down to installing and configuring tor, enable forwarding and some iptables stuff.

Security: There might be leaks. Also you maybe don't want to tunnel all of your traffic through tor. Tor itself has its problems too ... Depends on your threat model and why you actually want to use tor.

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Yes, it absolutely is. You could use e.g. Raspberry Pi or any OpenWrt capable router. In addition to that, there's even commercial Tor hardware routers like Anonabox, InvizBox & NetAidKit.

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