The advent of digitization in the credit card industry underscored the need for robust security measures to protect data. While major players in the industry formulated their own security practices to combat digital fraud, there was a lack of a single security standard that could be adopted across the board.
This led to the introduction of PCI (Payment Card Industry) compliance; a set of regulations for all organizations that process, store, or transfer credit card data. It was put in place by the Payment Card Industry Data Security Standard (PCI-DSS), which comprised all major credit card companies such as Mastercard, Visa, American Express, Discover, and JCB. Even though PCI compliance does not necessarily ensure that an organization’s data is 100% secure, it is an essential cybersecurity component.
So do organizations really have to be PCI compliant? Here’s why it helps:
- In addition to the hefty fines levied for non-compliance, organizations may also face substantial monetary and brand reputation loss due to financial fraud.
- Having a common PCI compliance standard across organizations helps entities like merchants and financial organizations to remain on the same page and be held accountable for their actions. This reduces the chance of fraudulent transactions.
- PCI-DSS guarantees that all transactions are fully encrypted. This ensures that it would take considerable effort for hackers to decrypt and make sense of the information received in the event of a data leak.
Now let’s explore how an organization can certify that it is PCI compliant:
Every organization falls into a different PCI compliance level based on the number of transactions it conducts in a year.
Level 1: More than 6 million transactions per year
Level 2: Between 1 million and 6 million transactions per year
Level 3: Between 20,000 and 1 million transactions per year
Level 4: Up to 20,000 transactions per year
There are numerous guidelines set by the PCI Security Standards Council. Read on for a detailed 12-point checklist that organizations must adhere to if they wish to remain compliant.
- Maintaining firewall protection: All organizations must have a secure firewall to make sure there is no unauthorized access to the network. Regular tests must be run on the firewall to ensure its robustness.
- Changing vendor-supplied default passwords: The most common way cybercriminals can attack is by decoding any default vendor-provided passwords on routers, firewalls, or other software. These passwords must be changed to stronger ones before the customer uses it.
- Protecting cardholder data: Compliance regulations state that cardholder data must not be stored for long periods, even if it is encrypted. In a scenario where data must be stored for any legal or business reasons, strong security measures must be taken to avoid any data breaches.
- Maintaining firewall protection: All organizations must have a secure firewall to make sure there is no unauthorized access to the network. Regular tests must be run on the firewall to ensure its robustness.
- Changing vendor-supplied default passwords: The most common way cybercriminals can attack is by decoding any default vendor-provided passwords on routers, firewalls, or other software. These passwords must be changed to stronger ones before the customer uses it.
- Protecting cardholder data: Compliance regulations state that cardholder data must not be stored for long periods, even if it is encrypted. In a scenario where data must be stored for any legal or business reasons, strong security measures must be taken to avoid any data breaches.
- Encrypting data during the transaction: Hackers might be able to target critical data when it is transmitted through open networks. Organizations must, therefore, make use of strong security protocols during transactions.
- Having an updated antivirus program: The latest version of antivirus software must be installed on all desktops, laptops, and mobile devices that the employees may use to access sensitive data.
- Maintaining secure systems: Organizations must keep a check on any security vulnerabilities that the systems may face over time. Updated security patches need to be installed on time, and the systems must be kept up-to-date.
- Restricting access to critical data: Organizations must be able to access cardholder data only on a need-to-know basis. If any particular information is needed to complete a specific task, the stakeholder can request approval for access. This will prevent unauthorized access to sensitive information.
- Assigning a unique ID to each user: Each device or computer that is used to access cardholder data must be given a unique ID to ensure that the information is only accessed by trusted sources. For remote access, compliance regulations recommend a two-factor authentication to improve security.
- Restricting physical access to data: Organizations must have systems in place to limit onsite access to cardholder information. Only relevant employees must be given access, and any unauthorized requests must be reported.
- Real-time monitoring of network resources: Since access points for cardholders can be remote and on-prem, it is mandatory that the source of data access be monitored and analyzed.
- Regular testing of security systems: It is essential to monitor these networks in real-time and continuously test them for any weaknesses, especially when system or software updates have been made.
- Updating information security policies regularly: PCI regulations deem it mandatory to implement and maintain an information security policy for employees.
Adhering to compliance regulations can help organizations combat cyber attacks and reduce the risk of data breaches. It can also increase the customers’ trust in the organization. Netlabs Global can help align your organization to PCI compliance standards and strengthen your cyber resilience practices. Check out our full range of cyber resilience services to know more.
