PCI DSS

K. K. Mookhey

What is PCI DSS ?

Payment Card Industry (PCI) Data Security Standard (DSS)

PCI DSS provides a baseline of technical and operational requirements designed to protect cardholder data.

PCI DSS comprises a minimum set of requirements for protecting cardholder data, and may be enhanced by additional controls and practices to further mitigate risks

Why Is Compliance with PCI DSS Important?

A security breach and subsequent compromise of payment card data has far-reaching consequences for affected organizations, including:Regulatory notification requirements,Loss of reputation,Loss of customers,Potential financial liabilities (for example, regulatory

and other fees and fines), andLitigation.

PCI DSS Payment Card Industry Data Security Standard

Standard applies to:Merchants – Acquirer is the authorityService Providers – Card Brand or Client is the

authoritySystems

Who:Store cardholder dataTransmit cardholder dataProcess cardholder data

Inclusive of:Electronic TransactionsPaper Transactions

The PCI Security Standards Council (PCI SSC)

An open global forum, launched in 2006, responsible for the development, management, education, and awareness of the PCI Security Standards, including:

Data Security Standard (DSS) Payment Application Data Security Standard (PA-

DSS) Pin Transaction Security (PTS)

Formally known as Pin-Entry Device (PED)

PCI DSSPCI PA-DSSPCI PTS

PCI SSC- Standards

PIN Transaction (PTS) Security Requirements

• It is a set of security requirements focused on characteristics and management of devices used in the protection of cardholder PINs and other payment processing related activities.

• The requirements are for manufacturers to follow in the design, manufacture and transport of a device to the entity that implements it.

• Financial institutions, processors, merchants and service providers should only use devices or components that are tested and approved by the PCI SSC.

www.pcisecuritystandards.org/security_standards/ped/pedapprovallist.html

Payment Application Data Security Standard (PA-DSS)

• The PA-DSS is for software developers and integrators of payment applications that store, process or transmit cardholder data as part of authorization or settlement when these applications are sold, distributed or licensed to third parties.

• Most card brands encourage merchants to use payment applications that are tested and approved by the PCI SSC.

Validated applications are listed at:www.pcisecuritystandards.org/security_standards/pa_dss.shtml

PCI Data Security Standard (DSS)

• The PCI DSS applies to all entities that store, process, and/or transmit cardholder data.

• It covers technical and operational system components included in or connected to cardholder data.

• If you are a merchant who accepts or processes payment cards, you must comply with the PCI DSS.

The PCI Security Standards Founders

Data on Payment Card

Track 1 vs. Track 2 Data

Track 1 vs. Track 2 Data (cont..)

If full track (either Track 1 or Track 2, from the magnetic stripe, magnetic-stripe image in a chip, or elsewhere) data is stored, malicious individuals who obtain that data can reproduce and sell payment cards around the world.

Full track data storage also violates the payment brands' operating regulations and can lead to fines and penalties.

What to store & what not to store

Guidelines for Storage

1. One-way hash functions based on strong cryptography – converts the entire PAN into a unique, fixed-length cryptographic value.

2. Truncation – permanently removes a segment of the data (for example, retaining only the last four digits).

3. Index tokens and securely stored pads – encryption algorithm that combines sensitive plain text data with a random key or “pad” that works only once.

4. Strong cryptography – with associated key management processes and procedures. Refer to the PCI DSS and PA-DSS Glossary of Terms, Abbreviations and Acronyms for the definition of “strong cryptography.”

The PCI Data Security Standard

Build and Maintain a Secure Network

1. Install and maintain a firewall configuration to protect cardholder data

2. Do not use vendor-supplied defaults for system passwords and other security parameters

Protect Cardholder Data 3. Protect stored cardholder data4. Encrypt transmission of cardholder data across open, public

networks

Maintain a Vulnerability Management Program

5. Use and regularly update anti-virus software or programs6. Develop and maintain secure systems and applications

Implement Strong Access Control Measures

7. Restrict access to cardholder data by business need-to-know8. Assign a unique ID to each person with computer access9. Restrict physical access to cardholder data

Regularly Monitor and Test Networks

10. Track and monitor all access to network resources and cardholder data

11. Regularly test security systems and processes

Maintain an Information Security Policy

12. Maintain a policy that addresses information security for employees and contractors

Six Goals, Twelve Requirements

Other PCI Standards

PCI SSC- Standards

PIN Transaction (PTS) Security Requirements

• It is a set of security requirements focused on characteristics and management of devices used in the protection of cardholder PINs and other payment processing related activities.

• The requirements are for manufacturers to follow in the design, manufacture and transport of a device to the entity that implements it.

• Financial institutions, processors, merchants and service providers should only use devices or components that are tested and approved by the PCI SSC.

www.pcisecuritystandards.org/security_standards/ped/pedapprovallist.html

PIN Transaction (PTS) Security Requirements (cont..)

• Objective 1 : PINs used in transactions governed by these requirements are processed using equipment and methodologies that ensure they are kept secure.

• Objective 2 : Cryptographic keys used for PIN encryption/decryption and related key management are created using processes that ensure that it is not possible to predict any key or determine that certain keys are more probable than other keys.

• Objective 3 : Keys are conveyed or transmitted in a secure manner.

PIN Transaction (PTS) Security Requirements (cont..)

• Objective 4 : Key-loading to hosts and PIN entry devices is handled in a secure manner.

• Objective 5 : Keys are used in a manner that prevents or detects their unauthorized usage.

• Objective 6 : Keys are administered in a secure manner.

• Objective 7 : Equipment used to process PINs and keys is managed in a secure manner.

Payment Application Data Security Standard (PA-DSS)

• The PA-DSS is for software developers and integrators of payment applications that store, process or transmit cardholder data as part of authorization or settlement when these applications are sold, distributed or licensed to third parties.

• Most card brands encourage merchants to use payment applications that are tested and approved by the PCI SSC.

Validated applications are listed at:www.pcisecuritystandards.org/security_standards/pa_dss.shtml

PA-DSS (cont..)

• Requirement 1 : Do not retain full magnetic stripe, card verification code or value (CAV2, CID, CVC2, CVV2), or PIN block data

• Requirement 2 : Protect stored cardholder data• Requirement 3 : Provide secure authentication

features• Requirement 4 : Log payment application

activity• Requirement 5 : Develop secure payment

applications• Requirement 6 : Protect wireless transmissions• Requirement 7 : Test payment applications to

address vulnerabilities• Requirement 8 : Facilitate secure network

implementation• Requirement 9 : Cardholder data must never be

stored on a server connected to the Internet

PA-DSS (cont..)

• Requirement 10 : Facilitate secure remote access to payment application

• Requirement 11 : Encrypt sensitive traffic over public networks

• Requirement 12 : Encrypt all non-console administrative access

• Requirement 13 : Maintain instructional documentation and training programs for customers, resellers, and integrators

NETWORK INTELLIGENCE INDIA PVT. LTD.AN ISO/IEC 27001:2005 CERTIFIED COMPANY

 

Thank you!Questions / Queries

Web http://www.niiconsulting.com  

Email kkmookhey@niiconsulting.com

Tel +91-22-2839-2628+91-22-4005-2628

Fax +91-22-2837-5454