FBI searches Chinese POS store for allegations of cyber attacks

The FBI raided the warehouse of a Chinese point-of-sale (POS) terminal seller in Jacksonville after reports that the terminals were being used as part of a distribution network Malware.

The company in question, PAX Technology, is based in Shenzhen, China. FBI agents conducted a court-approved search of the company’s warehouse in Jacksonville, Florida.

In one opinion Jacksonville-based WOKV.com, the FBI said it had “conducted a court-approved search of this location in order to promote” with the assistance of Homeland Security Investigations, Customs and Border Protection, Department of Commerce and Naval Criminal Investigative Services, and with assistance from the Jacksonville Sheriff’s Office Federal investigation “.

“We are not aware of any physical threat to the surrounding community associated with this search. The investigation remains active and ongoing and no additional information can currently be confirmed. “

According to a report of Krebs on Security, the FBI began investigating PAX after a major U.S. payment processor began asking questions about unusual network packages coming from the company’s payment terminals.

A source told the publication that the payment processor has discovered that the PAX terminals are being used as both malware droppers and C2 servers for staging attacks and gathering information.

The source also said that two financial services providers, one in the US and one in the UK, had started removing PAX terminals from the payments infrastructure, adding that there was evidence that these terminals were being used for cyberattacks.

“The packet sizes don’t match the payment details they should send, nor do they correlate with the telemetry these devices might display when they update their software. PAX now claims that the investigation is racially and politically motivated, “the source said Krebs on Security.

FBI agents are also investigating the company’s other location in Jacksonville. PAX shares plunged 43.3% in Hong Kong and stopped trading on news of the raid. PAX is the third largest provider of electronic payment terminals in the world after the Florida-based company Verifone and the French company Ingenico.

As reported in IT professional, retail is a prime target for cyber criminals as retailers have access to a wealth of sensitive information about their customers who frequently use repeated login credentials for their accounts.