PCI Requirement 1 Archives

This exclusive video series, PCI Demystified, was developed to assist your organization in understanding what Payment Card Industry Data Security Standard (PCI DSS) is, who it applies to, what the specific requirements are, and what your organization needs to do to become compliant.

The 12 PCI DSS Requirements

The PCI DSS was jointly developed by the payment card brands to encourage and enhance cardholder data security and facilitate the broad adoption of consistent data security measures globally. Its purpose is to ensure that all of the data that lives within the Cardholder Data Environment (CDE) is protected and secured from theft or unauthorized use. If you are a merchant, service provider, or subservice provider who stores, processes, or transmits cardholder data, you are subject to comply with the PCI DSS.

The current version, PCI DSS 3.2, has approximately 394 controls, 6 control objectives, and 12 major subject areas. The 12 requirements are:

PCI Requirement 1

“Install and maintain a firewall configuration to protect cardholder data.” Your organization should focus on securing and hardening your network and securing the inbound and outbound traffic.

PCI Requirement 2

“Do not use vendor-supplied passwords and other security parameters.” Most organizations tend to focus on hardening their operating systems, but this requirement is intended for all assets within the environment.

PCI Requirement 3

“Protect stored cardholder data.” This requirement focuses on securing cardholder data at rest; this is the encryption and the storage of sensitive information.

PCI Requirement 4

“Encrypt transmission of cardholder data across open, public networks.” If you transmit cardholder data over open or public networks, that data must be securely and appropriately protected.

PCI Requirement 5

“Protect all systems against malware and regularly update anti-virus software or programs.” Do not focus on only anti-malware or only anti-virus; this requirement deals with both.

PCI Requirement 6

“Develop and maintain secure systems and applications.” There’s more to this requirement than just securing applications. It’s about identifying vulnerabilities, patching your systems, change management, change controls, and secure software development.

PCI Requirement 7

“Restrict access to cardholder data by business need-to-know.” Requirement 7 goes hand-in-hand with Requirement 8; it focuses on authorization.

PCI Requirement 8

“Identify and authenticate access to system components.” Requirement 8 focuses on authentication.

PCI Requirement 9

“Restrict physical access to cardholder data.” If a hacker as physical access to your assets, they pretty much own that data.

PCI Requirement 10

“Track and monitor all access to network resources and cardholder data.” This requirement is all about logging.

PCI Requirement 11

“Regularly test security systems and processes.” Your organization must ensure that you’re testing for vulnerabilities and managing the security of your environment so that your assets are protected.

PCI Requirement 12

“Maintain a policy that address information security for all personnel.” This is the requirement that addresses the policy and procedure management and vendor management of your organization.

Learn More about the 12 PCI Requirements

Please note that this blog reflects PCI DSS v3.2. To learn about the current version of PCI DSS, v4.0, please see the following resources:

The 12 PCI DSS Requirements Video Transcript

The PCI DSS is comprised of 12 requirements and 2 appendices that we need to have a discussion about. We start out with Requirement 1, which is focused on securing and hardening the network and the inbound and outbound traffic. Requirement 2 is primarily focused with looking to harden the systems and the applications; most organization really just tend to focus on hardening their operating systems, but Requirement 2 is really intended for all assets within the environment. Requirement 3 is focused on securing cardholder data at rest. This is the encryption and the prohibition of storage of sensitive information. Requirement 4 is focused on making sure that when you transmit cardholder data over open or public networks, that the data itself is appropriately protected. Requirement 5 deals with antimalware and deals with antivirus.

Requirement 6 has actually got quite a bit that it deals with. This requirement, when we talk about the PCI DSS, talks about securing applications, but there’s a little bit more than that. It’s identifying vulnerabilities, it’s patching your system, it’s change management, it’s change controls, it’s secure software development and all the requirements that go along with making sure the applications are maintained securely. Requirement 7 and Requirement 8 kind-of go hand-in-hand; Requirement 7 is authorization and Requirement 8 is authentication. We change things up a little bit when we get to Requirement 9. Requirement 9 is focused on the physical security of the environment. If I’m a hacker and I have physical access to your assets, I can pretty much own the data on it. We get to Requirement 10, which is all of your logging. When we get to Requirement 11, it’s focused on making sure that all of things that you’ve put in place to secure your assets are functioning appropriately. This is where we’re testing for vulnerabilities and making sure we’re managing the security of the environment. Requirement 12 is the policy and procedure management and vendor management of the organization. This is really the management aspect of the PCI DSS itself.

Most organizations, most people tend to focus on the 12 requirements themselves, however there are 2 additional appendices that might as well be requirements. The first one we have is for shared hosted services providers. If you have a question of whether you’re a shared hosted service provider, please look at Requirement 2.6 in the PCI DSS. That will clearly explain what a shared hosted service provider is and talk about what the requirements are there. Lastly, we have the last appendix which we need to be concerned with or have conversations about. This is the Designated Entities Appendix. Once again, we’ll talk about what that is when we get to that requirement.

Why was PCI DSS developed?

The PCI Security Standards Council is a third-party organization that was developed for the sole purpose of managing the security of cardholder data. Prior to the PCI Security Standards Council, each payment card brand managed their own security standards.

Eventually, the payment card brands realized that it was counterproductive to have five different sets of standards that their clients had to audit against, thus, the PCI Security Standards Council and the PCI Data Security Standards were created. The PCI DSS was developed to encourage and enhance cardholder data security and facilitate the broad adoption of consistent data security measures globally. The founding payment brands for the PCI Security Standards Council include Visa, Inc., MasterCard, Discover Financial, American Express, or JCB International.

Who are the participants in the PCI environment?

If you store, process, or transmit cardholder data, interact with payment card data in any way, or have the ability to impact someone else’s cardholder information or the security of that information, you are subject to comply with the PCI DSS. The PCI Security Standards Council and payment card brands are major participants in the PCI environment and are responsible for tracking and enforcing PCI DSS compliance, penalties, fees, compliance deadlines, and the monitoring and facilitating of investigations. The other entities that are impacted by the PCI DSS compliance lifecycle are acquiring banks, issuing banks, merchants, service providers, and sub-service providers.

An acquiring bank is a bank or financial institution that processes card payments on behalf of a merchant. Acquirers are subject to payment brand rules and procedures regarding ensuring merchant compliance on behalf of the PCI Security Standards Council.

Issuing banks are the financial institutions that issue the payment cards on behalf of the payment card brands and who act as the middle man between the cardholder and the payment brand network.

Merchants accept the credit cards for payment and may store, process, or transmit cardholder data.

A service provider is any entity that stores, processes, or transmits cardholder data on behalf of a third-party (merchant), or otherwise have the ability to impact cardholder data security.

A sub-service provider is any entity that is acting on behalf of a merchant or service provider who has active access to their cardholder data environment.

Introduction to PCI DSS

Hi, my name is Jeff Wilder and I am the Director of PCI Services here at KirkpatrickPrice. We wanted to develop a series of videos to talk about what the PCI DSS Security Standards are, who they apply to, and then later on, talk about the specific requirements about what you actually need to do to in order to become compliant.

We want to start off the series by talking a little bit about the players within the industry. The PCI Security Standards Council is a third-party independent organization that was established about 10 years ago for the sole purpose of managing the standards themselves. Prior to the PCI Security Standards Council, each card brand managed their own standards. They realized that it wasn’t in their best interest to have five different standards and have clients having to audit against so many different standards. So, they established the Council as the sole means of managing a set of security standards that need to be applied if you interact with a Visa, MasterCard, American Express, or JCB. So in this lifecycle, we have the PCI Security Standards Council, we have the card brands themselves, and we also have what we call acquiring banks. Now these acquiring banks – if you are a merchant having merchant relationship with a bank, if you accept a credit card for payment, you have a relationship with an acquiring bank. These acquiring banks are the entities that, really, are responsible for your compliance. They are responsible for you on behalf of the Council to ensure that you are compliant on a day-to-day basis. Next in the ecosystem, we have what we call issuing banks. Now, the issuing banks have a relationship with the individuals that have credit cards. They’re the ones that actually issue the cards. Of course we have the merchants – these are the organizations that accept the credit cards for payment. Then we have service providers. Now, service providers are any entity that would store, process, or transmit cardholder data on behalf of a third-party, or otherwise have the ability to impact the security of it. If you interact with payment card data in any way, if you store, process, or transmit it, or if you have the ability to impact someone else’s cardholder information or the security of that information, you are subject to the PCI DSS standards.

In this series of videos, we’re going to be going over the requirements and talking about, not so much just what does the PCI DSS Security Standards say and the individual requirements, but what it really means. How is that going to apply into your environment? What I’m going to try to do is provide you with some guidance based off my 10 years of experience in the industry as former Council member helping to develop these standards and training for the last 2.5-3 years, prior to becoming the Director here at KirkpatrickPrice. I’m going to bring to the table all of that knowledge and information for you to use at your discretion. So, hope you enjoy the videos. Thank you.