PCI-DSS: Payment Card Industry Data Security Standard
The Payment Card Industry Data Security Standard (PCI-DSS) is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. Here's a detailed look at PCI-DSS:
History
- PCI-DSS was established in 2004 by the PCI Security Standards Council (PCI SSC), which was founded by American Express, Discover Financial Services, JCB International, MasterCard, and Visa Inc. to manage the ongoing evolution of the standard.
- The initial version was based on Visa's Account Information Security (AIS) and MasterCard's Site Data Protection (SDP) programs, which were the predecessors to PCI-DSS.
- Over the years, the standard has been revised several times to address emerging security threats and technologies. The latest major update was to version 3.2.1 in May 2018.
Objectives
The primary objectives of PCI-DSS are:
- To enhance the security of customer card data by implementing a consistent set of security measures globally.
- To reduce fraud and other forms of cybercrime by securing the payment card environment.
- To provide a clear framework for merchants, service providers, and financial institutions to follow in securing cardholder data.
Requirements
PCI-DSS consists of 12 requirements grouped into six control objectives:
- Build and Maintain a Secure Network and Systems - Install and maintain a firewall configuration to protect cardholder data; do not use vendor-supplied defaults for system passwords and other security parameters.
- Protect Cardholder Data - Protect stored cardholder data; encrypt transmission of cardholder data across open, public networks.
- Maintain a Vulnerability Management Program - Use and regularly update anti-virus software or programs; develop and maintain secure systems and applications.
- Implement Strong Access Control Measures - Restrict access to cardholder data by business need-to-know; assign a unique ID to each person with computer access; restrict physical access to cardholder data.
- Regularly Monitor and Test Networks - Track and monitor all access to network resources and cardholder data; regularly test security systems and processes.
- Maintain an Information Security Policy - Ensure there is a policy that addresses information security for employees and contractors.
Compliance Levels
PCI-DSS compliance is not mandatory by law but is required by the payment card brands:
- Merchants are categorized into four levels based on transaction volume, with Level 1 being the highest risk.
- Service providers are also classified, with similar requirements for compliance validation.
- Compliance validation methods include self-assessment questionnaires, third-party audits, and penetration testing.
Challenges and Criticisms
- Complexity: The standard can be complex, especially for smaller merchants, leading to challenges in implementation.
- Cost: The cost of compliance can be significant, particularly for small businesses.
- Effectiveness: While PCI-DSS aims to improve security, breaches still occur, raising questions about its effectiveness in preventing data breaches.
Future Developments
The PCI SSC continuously updates PCI-DSS to adapt to new threats and technologies:
- New versions of the standard are released periodically to address vulnerabilities and incorporate advancements in security technologies.
- There is a growing focus on integrating PCI-DSS with other security frameworks and standards for a more holistic approach to cybersecurity.
Sources