PAX Devices Sent Data to Chinese Third Parties, Treasury Warns
- Agency not aware of PAX using devices for destructive purposes
- Loss of data ‘low-severity threat’ to financial sector: U.S.
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Point-of-sale devices manufactured by PAX Global Technology Ltd. were transmitting encrypted data to unknown third parties in China, the U.S. Treasury Department said.
Partners of the agency conducted lab tests on PAX devices and found they would send transmissions that were “superfluous to normal payment transaction processing,” according to a letter obtained by Bloomberg News, and sent to financial-services companies from the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection. The transmissions happened more often and were larger in size than normal payment transactions, the agency said.