This document discusses achieving effective compliance with the Payment Card Industry Data Security Standard (PCI DSS). It begins by outlining some of the challenges organizations face in securing sensitive data like credit card information. It then provides background on the development of PCI standards in response to significant fraud losses. The document notes that compliance alone does not equal security, and that organizations often take a minimal approach or see compliance as a "check the box" exercise rather than part of an overall security strategy. It emphasizes the need for a holistic, risk-based approach rather than focusing solely on technical controls or compliance. Finally, it suggests some lessons learned and ways to move forward, including understanding data flows, limiting access, and building value beyond just certification.

1. Corporate Solutions & Services Inc.
How do you achieve security for your enterprise and
in turn achieve effective Compliance?
Saskatchewan Summit 3.0
Payment Card Industry
“Compliance does not equal to security”
Bashir Fancy, MD, Corporate Solutions & Services Inc.
Special Advisor,
Grant Thornton LLP
April 25, 2012
© 2010 Grant Thornton International. All rights reserved. 1 Corporate Solutions & Services

2. Objectives
This session will focus on:
1. A quick review of what the problem was and is
2. How we are approaching the PCI Compliance
standard in the last few years
1. The reason for limited success
3. How to approach PCI Compliance as part of your
overall security compliance effectively and
achieve sustainability
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3. Challenges that Organizations face
Without an effective data protection policy/process in place, your Organization
runs the potential risk of sensitive data loss, which can impact:
– Brand reputation
– Fraud Losses and financial impact
– Breach notification costs
– Costs to manage fraud
– Possible fines from credit card companies
– Loss of customer confidence
– Undesired regulatory attention
Your Organization may not be taking advantage of the opportunity to improve
efficiency, cost savings and improved bottom-line
PCI compliance would not have been required in the first place, if all the
Organization had been doing the right thing to protect the sensitive
information
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4. Background to the development of PCI
Significant Fraud losses have been occurring in Canada & Globally in both card present (swiped)
& card not present (online) environment
• Stored data not protected by acquirers/merchants/3rd Party Processors
• Sensitive data easily accessible, was not protected by processors
• Transmission of credit card data in clear text, making it easy to compromise
• Organized crime infiltrated major organizations and continue to do so today
• High proportion of compromise had a major internal component
• Lot more information continues to be stored than needed to conduct business
Brand impact can be significant with loss of confidence by consumers being impacted by the
compromise.
Significant costs to handle customer service issues including card replacement costs, credit
monitoring fraud losses and eventually resulting in loss of business
Visa was concerned that fraud losses were becoming acceptable as “cost of doing business”
4 Grant Thornton LLP - Achieving compliance and security Corporate Solutions & Services Inc.

5. Data: asset and liability
Data is both an asset and a liability. As organizations grow, the volume and
complexity of data increases to support the business. Sensitive data within the
enterprise must be protected against theft, loss, and misuse, assuming there are
legitimate reasons to store it in the first place.
Without an effective method to:
This data includes: • Discover data, it is difficult to apply the appropriate
security controls to protect it
• customer's information
• Classify data, it is difficult to understand the importance
• patent or trade secrets and sensitivity of the data and what should be
protected
• corporate information
• Control data, it is difficult to restrict access to data,
• personally identifiable information prevent misuse of it, and secure it at rest and in transit
• credit card data • Audit data and its usage, it is difficult to enforce the
security controls
As a result, it is difficult to adequately protect data
throughout its life cycle across the Organization
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6. Challenges that Organizations face
• Initially there was a lack of support from the corner suite as not all
Organizations truly understand the value of PCI standards
• Today many Organizations adopt it as a compliance issue, primarily to achieve
the certification paper
• Organizational silos prevent a holistic view to the magnitude of the problem
that create subsequent losses and costs
• Worse, these costs and inefficiencies have become part of our infrastructure
• Fraud is seen by many organizations as a “cost of doing business” and these
losses have been normalized
• Organizations track only the dollars they write off on the books and NOT costs
to manage fraud that are distributed across the organization
6

7. Lessons Learnt (Observations)
• Organizations are doing the bare minimum to comply- putting their brand at
risk
• PCI is NOT part of broad regulatory/audit/compliance with no ongoing
oversight or program/strategy in place to sustain compliance
• Remediation efforts have been undertaken using the letter of law. No
“enterprise wide owner” – lack of stakeholder involvement
• Widespread access to critical data – “grandfather rights” -reluctance to change
• PCI still seen as a “Credit Card” mandate only
• Lack of effective access controls, including the Point of Sale
• Communication and awareness has been lacking or has been selective
• There are a lot of make work projects that neither produce security or
enhance the operations!
• We still see misunderstanding of the requirements and/or collusion
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8. Lessons Learnt (Observations)
• Organizations continue to store data that is not required to conduct the business.
• Some Organizations have opted for tokenization, but the benefits of this approach
have been minimized because the whole project was not thought through.
• For example the ability to translate exists in many parts of the Organization.
• Some credit card processing has been outsourced without due diligence to whether
the outsourced organization is in fact PCI compliant or secure. Outsourcers do
outsource some of the work further down the stream compounding the problem
• Lack of an enterprise-wide owner and done on a one time effort – NOT SUSTAINABLE
• Organization have not done the mapping and as such duplicate the work instead of
“do it once and satisfy many”
• Some Organizations have embarked upon remediation without first doing data
classification/discovery - Lack of Strategy
8

9. Going Forward
• Contracts managing third parties have not keep pace with changing business
needs and in some instances, have not stipulated the right to audit the third
parties – need to review contracts
• Many of the processes have been derived from the paper based business and
do not necessarily reflect the current environment or need
• Utilize “compensating controls”. This has significant impact where legacy
systems are involved or where organizations may have invested in a different
approach/technology to secure themselves
• The road to PCI compliance crosses many departments - Must have buy-in
from the top; otherwise organizations risk failure and/or continued exposure
• Take into account the original problem (fraud, data loss, data breaches, brand
impact) that the PCI-DSS standard was developed to address, thereby taking a
broader perspective, so that organizations can get a return on their investment
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10. Going Forward
• A carefully thought through, holistic and risk-based approach is required to take
advantage of the synergies that exist between PCI-DSS, SOX, AML etc.) – “Do Once
and Satisfy Many”
• Take a “risk based approach” – not all risks have to addressed, but they must be
understood
• First and foremost understand the data flows fully. Review, justify and rationalize
what you really need to conduct your business. There will be resistance but
Organizations must enforce the discipline of streamlining and managing who has
access to what, why with proper oversight.
• This approach will help reduce the overall effort, optimize operations and produce a
“return on investment”
• Review access controls and limit access
• Build a value proposition beyond just compliance
• Technology, Process and People must be aligned
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11. COSO - Overview
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12. COSO Objectives and Components
12

13. COSO Principles
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14. Frameworks for IT 'GRC'
Various IT Internal Control/Process Models Exist
ITIL CobiT
IT Infrastructure Library – collection of Control Objectives for Information and
best practices in IT service related Technology
management IT processes defined
ISO 27001/ ISO27002 controls framework
Code of practice for Information Security stresses linking IT to business
Management requirements
Guidelines for the Management of IT layered
Security • orientation
NIST 800 series • detail
Generally Accepted Principles and • can be mapped to the other standards
Practices for Securing IT Systems and practices
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15. IT Governance in COBIT in COBIT
IT Governance
• IT delivery must enable the 1. Planning
organization to achieve its 2. Acquisition &
objectives. Implementation
• Promotes process focus and
process ownership. 3. Delivery & Support
• Looks at fiduciary, quality and 4. Monitoring
security needs of enterprises.
• 7 information criteria to define 1. Effectiveness
business requirements. 2. Efficiency
3. Availability
• Supported by 300+ control
4. Integrity
objectives.
5. Confidentiality
6. Reliability
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7. Compliance
© 2010 Grant Thornton International. All rights reserved. Corporate Solutions & Services

16. Going Forward
• Making PCI an integral part of the compliance building blocks throughout the
organization, PCI should be a subset of your overall Security Strategy
• Making Education & Awareness corner stone of this strategy, not just as one time
but ongoing and part of performance review
• Adopt best practices
• Hold accountable employees that violate/breach the process
• Ensuring that a dynamic security policy exists, or is developed to complement
your technology and operational efforts
– Ensure that the staff understand the policies and that the communication is
very clear
• Technology/Process and People must be aligned
16

17. Addressing Compliance
The Sustainable Approach
Step 1:
Identify, review and assess all of your security requirements (including the PCI of
course). Rationalize your requirements into a single enterprise security “framework”
and manage as part of your overall security program.
Key Factors:
• The framework should be built on industry standards (e.g. ISO17799, 27001,
NIST, OWASP, etc.) and incorporate relevant requirements (PCI, etc.).
• Track the source of the requirement!
• Use the framework as the basis for measuring and monitoring security for your
enterprise.
17

18. Addressing Compliance
The Sustainable Approach
Step 2:
Embed your security framework (requirements) into relevant business processes.
Key Factors:
• Not all of these processes will be owned by IT or Information Security.
• Your framework must be practical in order to succeed.
• Use the framework as the basis for measuring and monitoring security for your
enterprise.
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19. Addressing Compliance
The Sustainable Approach
Step 3:
Conduct a data flow analysis and system ‘inventory’ effort to understand the complete
lifecycle of the (cardholder) data you wish to protect. That includes:
• Acquisition
• Processing
• Storage
• Usage
• Destruction
Key Factors:
• Do not assume you know where the data is – many of the issues we have seen
involve data that was not supposed to “be there”. Be systematic, don’t accept
the easy answer.
• Data is an asset and a liability – if you don’t need it, get rid of it!
• Do not store full track, CVV2, etc. post authorization – challenge the teams that
tell you it is necessary.
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20. Addressing Compliance
The Sustainable Approach
Step 4:
Conduct a security risk assessment. Prioritize (risk rank) systems, applications and
infrastructure components.
Key Factors:
• Work with relevant stakeholders to define the risk factors/criteria.
• This is a risk based approach – it does not need to be an exercise in
mathematics.
• Not all systems present significant risk.
• For most companies, protecting everything perfectly is not a realistic goal. Make
risk based, strategic choices about where to apply your investment.
20

21. Addressing Compliance
The Sustainable Approach
Step 5:
Systematically assess the critical systems, applications and components in your
environment using your security framework. Identify gaps, develop solutions
appropriate to the risk and remediate.
Key Factors:
• Look beyond the individual requirements and across the environment. Address
issues from a enterprise security perspective where appropriate.
• Leverage other functions where possible (e.g. Internal Audit)
• Automate assessment tasks where possible. Sample where appropriate.
• Use the framework as the basis for measuring and monitoring security for your
enterprise.
21

22. Addressing Compliance
The Sustainable Approach
Step 6:
Make this an ongoing process. Repeat.
Key Factors:
• This should be an ongoing process. The initial effort will be the most significant
but it should greatly reduce the effort going forward.
• The data flow analysis and system inventory should return value across multiple
initiatives. It should be incrementally updated on a regular basis.
• As new requirements are devised, add them to your framework and continue
moving forward.
• Use the framework as the basis for measuring and monitoring security for your
enterprise.
22

23. Addressing Compliance
Benefits of The Sustainable Approach
• Reduced Effort
- One program as opposed to multiple programs
- Streamline compliance validation going forward
- Leverage technology and process improvements to meet multiple requirements
• Improved Security
- Risk based approach allows for investment in the most critical areas
- Systematic, consistent assessment against the enterprise security framework
allows for a holistic approach to security
23

24. Addressing Compliance
Level 3 and 4 Merchants
The same process should work for you:
• Simplified framework
• Fewer systems to inventory, risk rank, assess, etc.
Other Factors to consider:
• Focus on security when dealing with key service providers: web design and
hosting companies, payment processors, POS systems integrators, etc.
- Ask about their security strategy and design as it relates to the
product/service they offer.
- Are they are PCI compliant? Do they store track data? What safeguards
do they have in place to protect your customers?
• To the extent possible, understand your entire payment chain.
• Ensure you legal contracts reflects your needs and protects you.
• You don’t have to be big to be a target. Criminals are opportunistic.
24

25. Remediation
I
Approach
Compensating Controls
Common Compliance Issues
Scope Reduction
Other Items to Consider
Tactical Fraud Prevention
Be Prepared - Incident Response
What To Do If Compromised
25

26. Remediation
Approach
As a general framework to approaching remediation of compliance issues, an organization
should consider the following:
• What constitutes compliance (i.e., mandatory versus addressable requirements)?
• Is the issue isolated or pervasive?
• What is the priority of the issue?
• Is the issue already being addressed? If not, can it be incorporated into an existing effort?
• Can you do it now, how much will it cost and what is the impact?
- Solve it now, or
- Interim solution plus long-term strategy
• What is the complexity of remediation?
• What retroactive remediation needs to be done?
• What are the on-going operational costs and resource requirements required to sustain the
solution in the long-term?
• What governance and controls are needed?
- How do you manage compliance?
- Not just PCI problem
- Managing compliance across the organization
26

27. Remediation
Compensating Controls
• The PCI DSS allows for compensating controls “…when an entity cannot meet a
technical specification of a requirement, but has significantly mitigated the
associated risk.”
• Compensating controls must:
1. Meet the intent and rigor of the original stated PCI DSS requirement
2. Repel a compromise attempt with similar force
3. Be "above and beyond" other PCI DSS requirements (not simply in
compliance with other PCI DSS requirements) and
4. Be commensurate with the additional risk imposed by not adhering to the PCI
DSS requirement
• Compensating controls may be considered for all requirements EXCEPT storage of
prohibited data (i.e., full track data, CVV2, PIN) post-authorization (Requirement
3.2).
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28. How data leaves production (Data discovery)
Data leaves Organization’s production environments through many Channels. Outlined
below are some of the ways data does leave production.
Production data directly Production data “pushed” without
1
produced (“pulled”) using a Technology Intermediary
Production data “pushed” using Production data restored to the non-
2 4
a Technology Intermediary production technology environment
28

29. PCI remediation & compliance methodology
Risk Development
Data
Assessment of Remediation
Discovery & Certification
& Remediation & Testing
Analysis
Prioritization Strategy &
Solutions
29

30. Leverage Example 1: Establishing common controls/ processes
PCI Data CobIT 4.1
Security
Standard
General
ISO 17799 / Computer
ISO 27001 Controls
30

31. Corporate Solutions & Services Inc.
Achieving compliance does not necessarily mean
becoming secure.
However, achieving security does translate into
compliance.

32. Corporate Solutions & Services Inc.
Questions

33. Corporate Solutions & Services Inc.
Thank You
Bashir Fancy,
Special Advisor
Grant Thornton LLP
E bashir.fancy@ca.gt.com
bsfancy@rogers.com
T: 905 232 9191
C (416) 716-3418