This document provides an overview of PCI compliance, emphasizing the protection of cardholder data and detailing the various standards for developers and merchants. It outlines best practices for handling sensitive data, requirements for encryption, and the consequences of non-compliance, such as financial fines and reputational damage. Additionally, it includes information on using PA-DSS to develop secure payment applications that ensure compliance with PCI standards.

1. PCI COMPLIANCE
Introduction for developers mostly

2. • Goal of the standard is to protect cardholder data
• Statistics for US and Europe:
• 81% store payment card numbers
• 73% store payment card expiration dates
• 71% store payment card verification codes
• 16% store other personal data
• Internet
• Public
Networks
• Wireless
POS
• Internet
• Public
Networks
• Wireless
Merchant
• Internet
• Public
Networks
• Wireless
Service
Provider
• Internet
• Public
Networks
• Wireless
Acquirer

3. • PCI DSS compliance process
Repair
Report
Assess

4. • PAYMENT CARD INDUSTRY SECURITY STANDARDS
Manufacturers
PCI PTS
PIN Transaction
Security
Software Developers
PCI PA-DSS
Payment Application
Vendors
Merchants &
Processors
PCI DSS
Data Security Standard

5. • PCI DSS version 1.2 common sense steps that mirror best security
practices
Goals PCI DSS Requirements
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 data
4. Encrypt transmission of cardholder data across open,
public
networks
Maintain a Vulnerability
Management Program
5. Use and regularly update anti-virus software or programs
6. Develop and maintain secure systems and applications
Implement Strong Access
Control Measures
7. Restrict access to cardholder data by business need-to-
know
8. Assign a unique ID to each person with computer access
9. 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

6. • Do NOT request, send or accept payment card information by email
• If you receive cardholder data via email, do NOT process the
transaction
• Make the sender aware that, for their safety, they should never email
credit card information
• Remove the cardholder data when responding and direct them to an
approved processing method
• Delete the email containing cardholder data completely from your
email account.
• Many of the above practices can be applied to Personal
Information or PI (SSN, home address, anything that can
uniquely identify a person)

7. In majority of the cases we can use cryptographic primitives,
methods and protocols (refer to my previous presentation on the
topic) to ensure secure path our data travels (card data and PI) from
initiator (data storage, POS, etc.) to the end-point.
Sometimes we need to make sure we also reflect country or project
specific legal requirements.
Always think of where your data might end-up and do NOT STORE
or TRANSMIT it without strong business reasons !
If you absolutely need to do it think of tokenizing sensitive data.

8. • The PA-DSS is a standard for developers of payment applications.
• Its goal is to help development of secure commercial payment applications that do not
store prohibited data, and ensure that payment applications support compliance with the
PCI DSS.
• Merchants and service providers should ensure that they are using Council-approved
payment applications; check with your acquiring financial institution to understand
requirements and associated timeframes for implementing approved applications.
• PA-DSS has 14 requirements: For details and a list of approved Payment Applications, see
PCI website.
Why building applications with PA-DSS in mind is important even if your
applications is not going to participate in the PCI pipeline?
Because it might! And chances are it will if you work with financial
industries.

9. When should we comply with the PCI requirements?
• We accept payments (credit card or debit card) in-person
• -”- over the phone
• -”- over the internet
• -”- over mail
• We act as a service providers (accept payments for others)
PCI standard applies to all actors that store, process or
transmit cardholder data.

10. Extract from the PCI guide:
“Requirement 3: Protect stored cardholder data
In general, no cardholder data should ever be stored unless it’s necessary to meet the needs of the
business. Sensitive data on the magnetic stripe or chip must never be stored. If your organization
stores PAN, it is crucial to render it unreadable (see 3.4, and table below for guidelines).
3.1 Limit cardholder data storage and retention time to that required for business, legal, and/or
regulatory purposes, as documented in your data retention policy.
3.2 Do not store sensitive authentication data after authorization (even if it is encrypted). See
guidelines in table below.
3.3 Mask PAN when displayed; the first six and last four digits are the maximum number of digits
you may display. Not applicable for authorized people with a legitimate business need to see
the full PAN. Does not supersede stricter requirements in place for displays of cardholder data
such as on a point-of-sale receipt.
3.4 Render PAN, at minimum, unreadable anywhere it is stored – including on portable digital
media, backup media, in logs, and data received from or stored by wireless networks.
Technology solutions for this requirement may include strong one-way hash functions,
truncation, index tokens, securely stored pads, or strong cryptography. (See PCI DSS Glossary for
definition of strong cryptography.)
3.5 Protect cryptographic keys used for encryption of cardholder data from disclosure and misuse.
3.6 Fully document and implement all appropriate key management processes and procedures for
cryptographic keys used for encryption of cardholder data.”

11. Extract from the PCI guide:
“Requirement 4: Encrypt transmission of cardholder data across open, public networks
Cyber criminals may be able to intercept transmissions of cardholder data over open, public networks
so it is important to prevent their ability to view these data. Encryption is a technology used to render
transmitted data unreadable by any unauthorized person.
4.1 Use strong cryptography and security protocols such as SSL/TLS or IPSEC to safeguard sensitive
cardholder data during transmission over open, public networks (e.g. Internet, wireless
technologies, global systems for communications [GSM], general packet radio systems [GPRS]).
Ensure wireless networks transmitting cardholder data or connected to the cardholder data
environment use industry best practices (e.g., IEEE 802.11ix) to implement strong encryption
for authentication and transmission. For new wireless implementations, it is prohibited to
implement WEP after March 31, 2009. For current implementations, it is prohibited to use WEP
after June 30, 2010.
4.2 Never send unencrypted PANs by end user messaging technologies.”

12. Regarding developing and maintaining secure systems and applications PA-DSS certified
applications will have an Implementation Guide.
In general there are many secure software development and deployment guidelines, for example
OWASP for web applications, or Microsoft security checklists, and it is a good idea to pick any
and follow it.

13. Annual penetration testing and quarterly wireless and vulnerability
testing is a part of testing efforts and should be performed.
Remember, using penetration testing frameworks during development
phase builds a solid foundation for your software!

14. If you don’t have to comply with the PCI standards, breaching your
application will bring you unsatisfaction with the clients and will hurt
your reputation, at the very least. The real trouble begins when your
organization and your software do need to comply. In that case:
“Breach Consequences- Even if a company is 100% PCI compliant and validated, a breach in
cardholder data may still occur. Cardholder Breaches can result in the following losses for a
merchant.$50-$90 fine per cardholder data compromised
Suspension of credit card acceptance by a merchant’s credit card account provider
Loss of reputation with customers, suppliers, and partners
Possible civil litigation from breached customers
Loss of customer trust which effects future sales”
And these are just a small part if the forthcoming troubles.

15. Project implementation examples

16. Questions?