Digital payments are growing rapidly worldwide, driven by the increasing online presence of businesses and the evolution of payment methods. With more payment account data than ever before, cybercriminals are constantly on the lookout for vulnerabilities to exploit and steal this extremely sensitive information.
To combat this rising threat, the Payment Card Industry Security Standards Council (PCI SSC) has released the latest version of its Data Security Standard, called PCI DSS 4.0. This article will explore the key changes in PCI DSS 4.0 and provide practical steps organizations can take to achieve compliance.
What Is PCI DSS and Who Does It Apply To?
PCI DSS is a globally recognized standard designed to protect payment card data from breaches and fraud. It establishes a comprehensive set of security requirements for organizations that handle payment card information so that payment account data is stored, processed, and transmitted securely.
The standard consists of the following 12 requirements:
- Install and maintain network security controls.
- Apply secure configurations to all system components.
- Protect stored account data.
- Protect cardholder data with strong cryptography during transmission over open, public networks.
- Protect all systems and networks from malicious software.
- Develop and maintain secure systems and software.
- Restrict access to system components and cardholder data by business need to know.
- Identify users and authenticate access to system components.
- Restrict physical access to cardholder data.
- Log and monitor all access to system components and cardholder data.
- Test the security of systems and networks regularly.
- Support information security with organizational policies and programs.
PCI DSS was created in 2004 through a collaborative effort by the major credit card companies, including Visa, MasterCard, American Express, Discover, and JCB. These companies initially had their own individual security programs, but they unified their efforts to create a single standard to enhance security across the payment card industry. This initiative led to the formation of the PCI SSC in September 2006, which oversees the development and maintenance of the PCI DSS.
The standard applies to any entity that stores, processes, or transmits account data. This includes merchants, financial institutions, point-of-sale vendors, and service providers. Essentially, if your business handles payment account data, namely account numbers, cardholder names, expiration dates, service codes, or authentication data like PINs, card verification codes, and magnetic stripe/chip data, then PCI DSS compliance is mandatory. This is true even if you use a third-party payment processing solution, such as Stripe or PayPal.
PCI DSS Version 4.0: What is New?
PCI DSS 4.0 replaces version 3.2.1 to address emerging threats and enable innovative methods to combat new threats. The update was created based on over 6,000 items of feedback from more than 200 organizations.
The creation of the update was driven by four main goals, and these goals influenced the changes the update brings by shaping the focus and direction of the new version. Let’s take a closer look at them.
1. Maintain Effective Protection
As cybercriminals develop more sophisticated tactics, security practices must evolve accordingly. PCI DSS 4.0 introduces several key changes to help organizations effectively protect payment data and stay ahead of emerging threats.
One significant update is the requirement for multi-factor authentication (MFA) for all access into the cardholder data environment (CDE). By requiring multiple authentication factors, the risk of unauthorized access is substantially reduced, even if one factor is compromised.
Furthermore, password policies have been strengthened to include more robust criteria, such as minimum length and complexity requirements. This change helps reduce the risk of password-related breaches, which are one of the most common types of cyber attacks.
Also worth mentioning is the introduction of new e-commerce and phishing controls. These include measures to protect against skimming and to ensure secure handling of customer data during online transactions.
2. Security as a Continuous Process
Cybersecurity is an ongoing battle. Criminals are constantly looking for vulnerabilities, so organizations can’t afford to be complacent. PCI DSS 4.0 emphasizes the importance of making security a continuous process that keeps defenses effective and up to date.
To achieve this goal, the standard requires organizations to explicitly define and assign roles and responsibilities related to each security requirement. This way, everyone involved understands their duties and can be held accountable for maintaining security controls.
PCI DSS 4.0 also includes detailed guidance, such as best practices, common pitfalls to avoid, and examples of effective security controls, to assist organizations in understanding how to implement and maintain security measures well.
3. Increase Compliance Flexibility
Not all organizations have the same resources or risk profiles. PCI DSS 4.0 offers more flexibility in how businesses can achieve compliance so that the standard can be effectively implemented regardless of the organization’s size or structure. The most significant change that increases compliance flexibility is the introduction of the Customized Approach, in addition to the traditional method, now referred to as the Defined Approach.
The customized approach allows organizations to tailor their security measures in a way that best suits their unique operational needs while still meeting the overall security objectives of PCI DSS. This approach is particularly beneficial for entities that are leveraging innovative technologies or have specific security requirements that the standard requirements might not fully address.
As each customized implementation is unique, there are no predefined testing procedures. Instead, the entity’s assessor will create tailored testing procedures to confirm that the implemented control satisfies the Customized Approach Objective.Needless to say, the Customized Approach necessitates careful planning and thorough documentation, as organizations are responsible for designing, documenting, testing, and maintaining stringent security controls that meet the objective.
4. Enhance Validation Methods and Procedures
PCI DSS 4.0 better aligns the information reported in a Report on Compliance (ROC) or Self-Assessment Questionnaire (SAQ) and the information summarized in an Attestation of Compliance (AOC), which helps keep reported data consistent across various validation documents.
The updated validation procedures now also provide more detailed guidance on how to effectively assess compliance, including specific instructions on evaluating the implementation and maintenance of security controls.
Another key update is the provision for more granular reporting. PCI DSS 4.0 enables organizations to document their compliance efforts in greater detail, making it easier to identify and address any security gaps promptly.
Get Ready for PCI DSS 4.0 Now
Organizations must now fully comply with PCI DSS version 4.0, as the transition period has ended, and the previous version, PCI DSS v3.2.1, has been entirely phased out as of March 31, 2024. If your organization hasn’t completed the transition, it is paramount to prioritize compliance immediately to avoid potential security risks and regulatory penalties.
To get ready for PCI DSS 4.0, we recommend you:
- Conduct a gap analysis: Compare your current security measures against the new requirements of PCI DSS 4.0. Identify any gaps and develop a plan to address them.
- Focus on high-impact requirements: Prioritize the implementation of the requirements that have the most significant impact on your organization’s security and are most relevant to your unique operational needs.
- Train your team: Educate your staff about the changes in PCI DSS 4.0 and their roles in maintaining compliance. Regular training sessions can help everyone understand the new requirements and learn how to implement and adhere to them effectively.
- Document your compliance efforts: PCI DSS 4.0 emphasizes the importance of thorough documentation. Make sure to document your security policies, procedures, and compliance efforts to demonstrate your adherence to the standard and identify any security gaps.
- (Optional) Partner with a PCI DSS expert: If you’re struggling to navigate the complexities of PCI DSS 4.0 or catch up with the transition, consider partnering with a PCI DSS expert that can provide guidance, support, and expertise throughout the compliance process.
As a leading managed security service provider (MSSP) in the Washington D.C., Maryland, and Virginia area, we at OSIbeyond are deeply familiar with the cybersecurity landscape and the challenges organizations face in achieving and maintaining compliance with standards like PCI DSS 4.0. Our team of experts can help you navigate the complexities of the new version for a smooth, efficient, and successful transition.
Don’t wait any longer to protect your customers’ payment account data. Schedule a meeting with us today to discuss your PCI DSS 4.0 compliance needs.