Chinese POS terminal provider PAX Technology is facing serious security concerns following an FBI raid on its Florida offices, which has prompted payments processor Worldpay to replace its devices.
Earlier this week, the FBI conducted a court-authorized search at a PAX Technology warehouse in Jacksonville as part of an investigation. Security blogger Brian Krebs reports that the raid stems from fears that PAX’s devices may have played a role in cyberattacks targeting companies in the US and Europe.
Krebs indicated that the investigation was initiated after an unnamed US payments processor flagged unusual network packets coming from PAX’s terminals. It appears these terminals may have functioned as “malware droppers” and “command-and-control” centers for executing attacks.
According to a report from Bloomberg, FIS-owned Worldpay has started replacing PAX terminals with devices from Verifone and Ingenico after PAX did not provide sufficient answers regarding its POS devices connecting to unauthorized websites.
A spokesperson from FIS stated that while there is no evidence suggesting that data processed through PAX devices has been compromised, the terminals—which are used by less than five percent of its clients—are being replaced.
In response to the situation, PAX issued a statement asserting that it is “not aware of any illegal conduct by it or its employees” and emphasized that the company takes “security very seriously.”