Post on 14-May-2015
description
Payment Card Acceptance
PCI Compliance for Local Governments
© 2012 Maze & Associates 2
eCommerce & Credit Card Processing
• Risks associated with cc processing• What is PCI?• Why is it important?• What do we have to do?
06-Feb-12
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The Problem
Albert Gonzalez, 28
With accomplices, he was involved in data breaches of most of the major data breaches: Heartland, Hannaford Bros., 7-Eleven, T.J. Maxx, Marshalls, BJ’s Wholesale Club, OfficeMax, Barnes & Noble, Sports Authority, Dave & Busters, Boston Market, Forever 21, DSW and others.
06-Feb-12
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Who is behind data breaches?
• 70% from external agents• 48% caused by insiders• 11% implicated business partners• 27% involved multiple parties
Source:06-Feb-12
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Risks
• Fraud• Theft• Fines (bank and card brands)• Credit monitoring fees for customers• Litigation costs• Reputation
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Players• Acquirer (Merchant Bank)– Bankcard association member that initiates
and maintains relationships with merchants that accept payment cards
• Hosting Provider– Offer various services to merchants and
other service providers.• Merchant– Provides goods and services for
compensation• Cardholder– Customer to whom a card is issued or
individual authorized to use the card
Card Brand
Acquirer
Hosting Provider
Merchant
Cardholder06-Feb-12
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Players
• Card Brand– Issue fines– Determine compliance
requirements
• PCI Security Standards Council– Maintain standards for PCI– Administer ASV & QSA
• Qualified Security Assessors– Certified to provide annual audits
• Approved Scanning Vendor– Certified to provide quarterly
scans
Card Brands
PCI SSC
QSA
ASV
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PCI Council Standards
American Express, DSOP
Discover Network, DISC
Master Card, SDP
Visa, CISP JCB
PCI Data Security Standard
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What does the PCI Council do?
• Own and manage PCI DSS, including maintenance, revisions, interpretation and distribution
• Define common audit requirements to validate compliance
• Manage certification process for security assessors and network scanning vendors
• Establish minimum qualification requirements• Maintain and publish a list of certified assessors
and vendors06-Feb-12
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Website
https://www.pcisecuritystandards.org/06-Feb-12
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What are the Standards?
• PCI DSS: PCI Data Security Standard– Overall standard, applies to all
• PA DSS: Payment Application Data Security Standard– Supporting standard for payment applications
• PTS (was PED): PIN Transaction Security Standard– Supporting standard for PIN entry devices– Supporting standard for unattended payment
terminals (UPT)06-Feb-12
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Who must comply?
• With PCI DSS– Any organization that processes, stores or transmits credit
card information. • With PA DSS
– Payment application developers– Merchants will be required to use only compliant
applications by July 2010.• With PTS
– Manufactures of PIN entry devices– Merchants will be required to use only compliant hardware
by July 2010.– MasterCard PTS to incorporate into PCI SSC April 30, 2010
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PCI Compliance
• This includes: • Organizations who only use paper based
processing• Organizations who outsource the credit
card processing• Organizations that process credit cards in
house
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What if we are a small organization?
• “All merchants, whether small or large, need to be PCI compliant.
• The payment brands have collectively adopted PCI DSS as the requirement for organizations that process, store or transmit payment cardholder data.”– PCI SSC
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Cost?• What happens when there is a data
breach?– Depends if the merchant can reach safe
harbor.
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What’s Safe Harbor?
Incident
Evaluation
Safe Harbor
$$$$$$
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Safe Harbor Notes:
• For a merchant to be considered compliant, any Service Providers that store, process or transmit credit card account data on behalf of the merchant must also be compliant.
• The submission of compliance validation documentation alone does not provide the merchant with safe harbor status.
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Outside the Safe Harbor
• Losses of cardholders• Losses of banks• Losses of card brands– Fines from the Card brands– Possible restrictions on process credit cards– Cost of forensic audit
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FinesMerchants may be subject to fines by the card associations if deemed non-compliant. For your convenience fine schedules for Visa and MasterCard are outlined below.
http://www.firstnationalmerchants.com/ms/html/en/pci_compliance/pci_data_secur_stand.html
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Continuous Process
• “PCI DSS compliance is much more than a “project” with a beginning and end – It’s an ongoing process of assessment, remediation and reporting” - PCI SSC
Assess
ReportRemediate
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Continuous Process
• Many of the PCI requirements have specific time interval requirements
• Create a schedule for time based requirements
• Some organizations already have ‘maintenance calendars’ for these type of actions
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Common Findings
• Clients think they are compliant– Because they do quarterly networks scans– Because they filled out the SAQ– Because they have too few transactions
• Reality– Validation is not compliance– Compliance is an ongoing process– PCI DSS is required for all merchants,
regardless of the number of transactions
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Common Findings• Payment card information on paper• No network segmentation• Logging Access• Shared Passwords• Verifying compliance of outsourced
processing• No one is assigned responsibility• Not aware of PAN storage in
application
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PCI Pitfalls• PCI will not make an organization’s
network or data secure• PCI DSS focuses on one type of
data: payment card transactions• The organization runs the risk of
focusing on one class of data to the detriment of everything else
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Important
• Senior management support• PCI knowledge• Support from merchant bank• PCI early in lifecycle– PCI reviewed when new applications or
systems are purchased– Should included all PII (Personally Identifiable
Information)
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Cardholder DataData Element Storage
PermittedProtectionRequired
PCI DSS 3.4
Cardholder Data
Primary Account Number (PAN) Yes Yes Yes
Cardholder Name Yes Yes No
Service Code Yes Yes No
Expiration Date Yes Yes No
SensitiveAuthentication
Data
Full Magnetic Stripe Data No N/A N/A
CVC2 / CVV2 / CID / CAV2 No N/A N/A
PIN / PIN Block No N/A N/A
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Places to look for CHD
• Electronic Image Files• SANS• Fax Servers• Scan Archive• Pinter Spool• Laser Fiche• Log Files
• Audio Recording: customer service call recordings
• Voicemail• Email Server/Archive• Backup Media• Copier Scanner Cache • Data bases
Perform a search for CHD every 6 months
06-Feb-12
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Risk Mitigation
• Teamwork– Finance department takes the lead (payment
processing and associated controls)– IT department – technical expertise– Legal department – policy etc…– Associated departments – payment
processing in support of other City functions (golf, parks & rec, classes, theater, licenses, PD, utilities, library etc…)
06-Feb-12
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Risk Mitigation
• Start implementing the data security standard starting with policies
• Start with high level polices– “The City shall not store PAN (Credit Card
Numbers) electronically or physically. Employees shall be trained on PCI standard annually. Background checks will be performed on all staff with access to credit card information.”
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Policy Examples
• “The City shall develop procedures to ensure that information security and privacy best practices are followed to include compliance with all laws or contractual requirements.”
• “The City shall adopt information security and privacy procedures based on industry standards such as NIST and PCI security standards.”
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Risk Mitigation
• The merchant is ultimately responsible– Not the hardware manufacturer’s
responsibility– Not application vendor’s responsibility– Not the bank’s responsibility– Not the customer’s responsibility
06-Feb-12