Understanding PCI:DSS Compliance - Essential Steps and Tips

1. PCI:DSSWhat is it, and what does it mean to you? Dale Pearson17th November 2009

2. Today’s Presentation • Security Stats • Why PCI:DSS • What does PCI:DSS mean to you • Steps to becoming compliant • Tips and Take Aways • Question Time

3. About Me • Founder – Security Active • Security Manager – Atos Origin • Senior Security and Risk Consultant – Zurich • Global Network & Security Architect – GE • Security Research • Presenting / Lecturing • Security Bloggers Meet Up • Blogging / Podcasting / Twittering • Consulting / Education / Awareness • Ethical Hacker . Net Board of Advisors • Hackers for Charity / iT4Communities

4. Security Stats Stats are from the Verizon Business Data Breach Investigations Report http://www.verizonbusiness.com/resources/security/databreachreport.pdf

5. Data Breaches Payment Card Data - Most Wanted Companies unaware of breach occurance

6. Exploitation Hacking and Malicious Code Top for Exploitation Methods Applications and OS targeted by Attackers

7. Threat Points Online presence increased risk Don't underestimate the insider threat

8. Simples Companies unaware of data existence Attacks are easy to carry out, and many could have been prevented

9. Why PCI:DSS ??

10. In the Media

11. The Creation of PCI:DSS • Payment Card Industry : Data Security Standard • Card Fraud pushed to an unsustainable level • Security of information is an important factor to protect against financial loss, as well as reputational loss • PCI:DSS is the card schemes response • Secure transmission, storage and processing of card holder data. • Coverage of systems, policies, and procedures

12. What's it all about? • Increase security of card holder data • Coverage of entire payments process • Backing from the card schemes and banks • Compliance is mandatory • Based on best practice • Over 232 controls in 12 areas • June 2005 Deadline • July 2007 Deadline • All merchants to define a compliance date • 18% of companies in the UK are compliant

13. What can PCI:DSS Do For You? • Brand reputation protection • Framework to build upon • Understanding of information in your business • Improved security controls • Documented and formalised process and policy • Acceptance and reduction of risk • Competitive edge • Reduced processing costs • Avoid fines and legal costs • Continue accepting cards • Safe Harbour

14. Who’s Who Is A Member of Is A Member of May or May not be the same as Acquirer Issuer Provides Processing Services to Issues Cards to Cardholder Merchant Uses Card to Buy From

15. What does PCI:DSS mean to you?

16. PCI:SS Requirements • Build and Maintain a Secure Network • Install and maintain a firewall configuration to protect cardholder data • Do not use vendor-supplied defaults for system passwords and other 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 • Develop and maintain secure systems and applications

17. PCI:SS Requirements • 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 • Maintain a policy that addresses information security

18. Steps to becoming Compliant

19. Merchant Requirements

20. Self Assessment Questionnaire • Subset of the full Onsite Audit Criteria • Completed by the merchant • Submitted to the Acquirer • Made up of Yes / No / Not Applicable responses • Broken up into the six sections of requirement

21. Compliance Life Cycle PCI:DSS Certification Pre-Assessment / Gap Analysis Implement / Remediate

22. Road to compliance • Senior Manager Support • Understand the task at hand • Identify applications and locations of cardholder data • Produce network diagrams and data flows • Identify compliance gaps to the 12 requirements • Obtain required expertise • Establish the scope for compliance • Engage with 3rd parties • Conduct vulnerability scans • Prioritise remediation activities • Clarify compliance on submission of SAQ

23. Key Controls Systems / Technology • Network Segmentation • System Hardening • Encryption • Anti-Virus / Anti-Malware • Access Controls • Password Controls • Physical Access Controls • Centralized Logging • File Integrity Monitoring • IDS / IPS • Scanning (Wireless & Vulnerabilities)

24. Key Controls Procedures • Systems Build • Encryption Key Management • Secure Applications Development • Security Testing (Vuln Scanning & Pen Tests) • Log Review • Annual Risk Assessment • Policies / Procedures Annual Review & Issue • Security Awareness • Incident Response Annual Testing People • Background Checks, Security Awareness

25. What’s in Scope? Firewalls / Switches / Routers / Network Appliances / Servers / Workstations / Laptops

26. PA-DSS Payment Application Data Security Standard • Based on Visa’s (Payment Application Best Practices) Required 1st July 2010 • Purpose and scope • Payment applications must facilitate (not prevent) PCI:DSS compliance • Applies only to payment applications developed by 3rd parties • Goals for Software Development • Application must not retain mag stripe data • Application must encrypt cardholder data • Guidance for PCI:DSS compliant implementation

27. QSA Review / Assessment • Detailed audit against PCI:DSS • Targets all systems and networks storing, processing or transmitting cardholder data • Review of contractual relationships • Performed by a VISA certified provider (QSA) • Report on compliance submitted to Acquirer

28. Assessment Examples

29. Common Compliance Issues • Scoping of project is to large • Flat network and no segmentation • Legacy systems, and non compliant software • Lack of knowledge to interpret controls • Lack of formal processes and procedures • Confusion of systems scoping • Storage, processing and transmitting of data with no business requirement • Non compliant 3rd parties • Significant cost to full compliance • Evaluation of compensating controls

30. Consequence of non compliance • Monthly fine for non compliance • Increased cost for processing cards • Damage to brand reputation • Customers sue for negligence • Increased risk of security breach • Costly investigative charges • No safe harbour • Acquirer refuses to allow card processing

31. Misconceptions • Self assessment means your compliant • Compliance means you wont suffer a breach • Outsourcing takes away your need for compliance • PCI:DSS is just about IT • A single product can make you compliant • Compliance can be automated

32. Tips and Take Aways • Reduce your scope • Ensure senior buy in • Prioritise Tasks – High Medium Low • Be honest and open about card holder data existence • Maintain the good security practices • Go beyond card data systems • Be proactive with checks and controls • No single product equals compliance • Make someone responsible for managing compliance

33. Online Documentation • PCI:DSS Standard v1.2 https://www.pcisecuritystandards.org/saq/docs/aoc_saq_d_merchants.doc • Approved QSA List https://www.pcisecuritystandards.org/pdfs/pci_qsa_list.pdf • PCI Prioritized Approachhttps://www.pcisecuritystandards.org/education/prioritized.shtml

34. Q&A Thank You. Dale Pearson 07770 373 586 dale.pearson@securityactive.co.uk