An anonymous reader quotes a report from KrebsOnSecurity: U.S. federal investigators today raided the Florida offices of PAX Technology, a Chinese provider of point-of-sale devices used by millions of businesses and retailers globally. KrebsOnSecurity has learned the raid is tied to reports that PAX’s systems may have been involved in cyberattacks on U.S. and E.U. organizations. Headquartered in Shenzhen, China, PAX Technology Inc. has more than 60 million point-of-sale terminals in use throughout 120 countries. Earlier today, Jacksonville, Fla. based WOKV.com reported that agents with the FBI and Department of Homeland Security (DHS) had raided a local PAX Technology warehouse. In an official statement, investigators told WOKV only that they were executing a court-authorized search at the warehouse as a part of a federal investigation, and that the inquiry included the Department of Customs and Border Protection and the Naval Criminal Investigative Services (NCIS).
Several days ago, KrebsOnSecurity heard from a trusted source that the FBI began investigating PAX after a major U.S. payment processor started asking questions about unusual network packets originating from the company’s payment terminals. According to that source, the payment processor found that the PAX terminals were being used both as a malware “dropper” — a repository for malicious files — and as “command-and-control” locations for staging attacks and collecting information. The source said two major financial providers — one in the United States and one in the United Kingdom — had already begun pulling PAX terminals from their payment infrastructure, a claim that was verified by two different sources. The source was unable to share specific details about the strange network activity that prompted the FBI’s investigation. But it should be noted that point-of-sale terminals and the technology that supports them are perennial targets of cybercriminals.

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Source:: Slashdot