China based credit card reader manufacturer’s Florida office raided by Feds after evidence links them to ‘command-and-control’ malware

Federal agents have raided a Chinese credit card reader company due to evidence that links them to multiple cyberattacks, according to a report by The Daily Mail

Investigators hit the PAX Technology card readers’ offices in Florida with their raid after they concluded that the readers being produced and distributed by the China-based company was behind cyberattacks taking place around the world. 

The point-of-sale devices are in use in over 60 million locations across 120 countries and took in around $727 million in sales revenues in 2020, according to the Daily Mail’s report. 

Agents from both the FBI and Department of Homeland Security raided the Jacksonville, Florida area warehouse according to a report by WOKV, who also reported that there is increasing international interest in the case:

“FBI and MI5 are conducting an intensive investigation into PAX,” the local news station said in their report. “A major US payment processor began asking questions about network packets originating from PAX terminals and were not given any good answers.”

According to the Daily Mail, the United States regulators are expelling the area of ChinaTelecom Ltd., out of the American market, viewing them as a national security threat following the company’s connection to malware files that are known as “command-and-control” devices that collect information from those they interact with.

ChinaTelecom Ltd. is a state-owned carrier in an American market and the United States is demanding that the China Telecom Americas Corp. stop providing domestic interstate and international service in the United States within 60 days, per the Federal Communications Commission. 

WOKV reported that the company provided them with a statement where they said they were “subject to an unexpected visit from the Federal Bureau of Investigation (FBI) and other government agencies relating to an apparent investigation.

“PAX Technology is not aware of any illegal conduct by it or its employees and is in the process of engaging counsel to assist in learning more about the events that led to the investigation.”