Essential guide to ace your PCI Audit: Preparation and tips

Oro provides content designed to educate and help audiences on their compliance journey.

Payment Card Industry Data Security Standard (PCI DSS) is a universal set of standards designed to mitigate the risk of data breaches and ensure the secure handling of cardholder data. But how can you ensure your organization is compliant with these standards? Enter the PCI Audit, a rigorous assessment process that ensures adherence to PCI DSS.

Key takeaways

• A PCI audit is an evaluation of adherence to the Payment Card Industry Data Security Standard (PCI DSS)
• Organizations must assess their risk and merchant status to determine if a PCI Audit is necessary
• Leveraging technology, partnering with compliant third parties, and reinforcing security measures are essential for sustaining compliance

What is a PCI audit?

A PCI compliance audit isn’t just a box-ticking exercise. It’s a thorough evaluation aimed at measuring your organization’s adherence to the PCI DSS, with a specific focus on secure cardholder data handling (like Primary Account Number, CAV/CID/CVC2/CVV2, etc.). 

Just as a financial audit evaluates monetary transactions and processes, a PCI audit scrutinizes the systems, processes, and security controls related to cardholder data.

The main objectives of the audit are to: 

• Identify instances of non-compliance
• Provide guidance on how to achieve or maintain compliance 
• Address all outstanding issues 

It’s a testament to your organization’s commitment to secure customer data, showcasing your ability to maintain PCI DSS compliance and safeguard cardholder data.

During the audit, assessors thoroughly evaluate your organization’s security measures, make onsite visits to witness the operation of technology and personnel, and evaluate your adherence to PCI requirements for secure payment card processing. A successful audit results in a Report on Compliance (RoC), which gets your organization on the Visa Compliance List and reaffirms your commitment to cardholder data security.

PCI audit requirements

PCI Audit requirements consist of detailed guidelines that organizations are obliged to strictly follow. Qualified Security Assessors (QSAs) certified by the PCI Security Standards Council (PCI SSC) are the only ones authorized to conduct PCI audits. This means that only those who have met the rigorous standards set by the PCI SSC are allowed to perform these critical security assessments.

The 12 essential PCI DSS requirements

Each goal targets a pivotal facet of data security, aiding organizations in maintaining secure systems and protecting sensitive information.

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Understanding and executing these requirements empowers businesses to secure their customers’ data effectively and conform to the PCI DSS compliance standards. Let’s look more deeply at each of these 12 requirements.

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Goal 1: Building and maintaining a secure network

The foundation of a secure network begins with the installation and maintenance of firewalls, which help protect cardholder data from unauthorized access. In addition, businesses must also change vendor-supplied default passwords and security parameters on all system components. Default passwords and settings are often well-known by attackers, making it easier for them to gain unauthorized access to your network. Changing these defaults and implementing strong, unique passwords for each device and system helps to ensure the security of your network.

Requirements:

1. Install and maintain a firewall configuration to protect cardholder data: Firewalls act as a barrier between your internal network and external threats, such as hackers and malware.

2: Do not use vendor-supplied defaults for system passwords and other security parameters: Default passwords and settings are often well-known by attackers, making it easier for them to gain unauthorized access to your network.

Goal 2: Protecting cardholder data

To protect cardholder data, businesses must encrypt stored cardholder data and securely transmit cardholder data across open networks. Implementing strong encryption methods, such as AES (Advanced Encryption Standard) or RSA (Rivest-Shamir-Adleman), for both stored and transmitted data is essential for keeping cardholder data safe from potential threats. 

Requirements:

3. Protect stored cardholder data: Businesses must encrypt stored cardholder data. Encryption helps to ensure that even if a security breach occurs, the sensitive data will be unreadable to unauthorized users.

4. Encrypt transmission of cardholder data across open, public networks: Securely transmitting cardholder data across open networks is essential for keeping cardholder data safe from potential threats, like Man in the Middle attacks.

Goal 3: Managing vulnerabilities

Vulnerability management forms a key element of PCI DSS compliance. This involves using updated antivirus software to protect against malware and other threats and developing and maintaining secure systems and applications.

Requirements:

5. Use and regularly update anti-virus software or programs: Regularly update antivirus software and apply patches to help maintain secure systems, protecting your network from new and emerging threats.

6. Develop and maintain secure systems and applications: Implement and train employees on secure coding practices and regularly update and patch systems and applicationsto identify and address potential risks.

Goal 4: Implementing strong access controls

The implementation of robust access controls is vital for the security of cardholder data. This involves:

• Using measures to restrict access to cardholder data to only those employees who require it for their job duties
• Assigning unique user IDs to each individual with access to the data
• Controlling physical access to facilities where the data is stored

By limiting access to cardholder data, businesses can minimize the risk of unauthorized access and potential data breaches. Additionally, implementing multi-factor authentication and regularly reviewing access privileges can further enhance the security of protecting cardholder data.

Requirements:

7. Restrict access to cardholder data by business need-to-know: Use measures to restrict access to cardholder data to only those employees who require it for their job duties.

8. Assign a unique ID to each person with computer access: Use strong authentication methods to verify the identity of users and systems accessing cardholder data.

9. Restrict physical access to cardholder data: By limiting access to cardholder data, businesses can minimize the risk of unauthorized access and potential data breaches.

Goal 5: Monitoring and testing networks

Monitoring and testing networks require tracking access to network resources and cardholder data, as well as regularly testing security systems and processes.

Organizations should implement network monitoring tools to detect unauthorized access and potential security breaches. By regularly testing security systems, they can perform regular vulnerability scans, penetration tests, and security audits to help identify and address security vulnerabilities, ensuring the continued protection of cardholder data.

Requirements:

10. Track and monitor all access to network resources and cardholder data: Implement network monitoring tools to detect unauthorized access and potential security breaches.

11. Regularly test security systems and processes: Conduct regular security testing and assessments to identify vulnerabilities and weaknesses, ensuring the continued protection of cardholder data.

Goal 6: Establishing information security policies

The establishment of information security policies forms a critical part of PCI DSS compliance. These policies should outline the responsibilities of all personnel in maintaining the security of cardholder data and provide regular security training to ensure employees are aware of their roles in maintaining compliance.

Information security policies should be regularly reviewed and updated to reflect changes in the organization’s environment and emerging threats. By establishing clear policies and providing ongoing training, businesses can foster a culture of security awareness and ensure the protection of sensitive customer data.

Requirement:

12. Maintain a policy that addresses information security for all personnel: Establish and maintain security policies and procedures, and ensure all personnel receive regular security training and are aware of their roles in maintaining compliance

Understanding if your organization needs a PCI DSS Audit

An organization will need a PCI audit if they store, process, or transmit CHD – the merchant level dictates what level of audit they will need – ROC (level 1) or SAQ (level 2-4). This classification mirrors the level of risk and potential consequences of a data breach.

The necessity for a company to undergo a PCI audit is also determined by its merchant status and the requirements for that level.. The four levels of PCI compliance requirements are determined based on merchant level, ranging from level 1 with the most stringent requirements to level 4 with the lowest level of audit requirements.

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Level 1

PCI Merchant Level 1 encompasses all businesses that process more than 6 million transactions annually across all platforms or any business that has previously suffered a data breach. These Level 1 businesses are required to have their compliance verified through annual audits conducted by a third party, in addition to annual network scans carried out by an Approved Scanning Vendor. Furthermore, they must obtain two essential documents: 

1. An Attestation of Compliance (AoC) 
2. A Report on Compliance (RoC).

Level 2

This level encompasses merchants who process between 1 million and 6 million transactions annually across all platforms. All service providers and merchants from Levels 2 to 4 are required to complete a PCI DSS Self-Assessment Questionnaire, which must be endorsed by the organization’s senior management team. Moreover, they must also undergo quarterly network scans carried out by authorized scanning vendors.

Level 3 and Level 4

Service providers and merchants managing a smaller volume of data usually find that completing a Self-Assessment Questionnaire (SAQ) and an Attestation of Compliance (AOC) suffices.

The roadmap to a successful PCI DSS Audit

The journey to a successful PCI DSS audit begins with a crucial step known as scoping. This process sets the boundaries for the upcoming audit by identifying all the locations and workflows within your cardholder data environment (CDE) that handle cardholder data. 

It’s essential to perform this comprehensive scoping of all systems annually and certainly before your audit. The responsibility of defining the audit scope lies with you, as auditors come equipped to evaluate all system processes unless specified otherwise, adhering to the guidelines of the PCI Security Standards Council.

Following the scoping, a Qualified Security Assessor (QSA) takes the reins to conduct a thorough onsite  or remote audit assessment. This process involves a meticulous examination of your security infrastructure, including all systems, policies, and procedures. The role of a QSA is multifaceted, encompassing:

• Verification and documentation of all the technical information provided by your organization
• Approval of your assessment scope
• Constant presence during the entire assessment
• Strict adherence to all PCI data security assessment protocols
• Evaluation and validation of documentation of compensating controls
• Utilization of professional judgment to confirm adherence to PCI DSS standards
• Creation and submission of a comprehensive Final Report

The audit process doesn’t end with the final report. It’s an ongoing endeavor, as organizations are required to continually monitor their data security systems, policies, and procedures to maintain PCI DSS compliance. Many businesses uphold this standard by implementing frequent PCI scanning, penetration testing, and event log monitoring to ensure all PCI data protection controls are up to par.

Regular reinforcement: Maintaining ongoing PCI compliance

Maintaining PCI DSS compliance isn’t a one-off event but a continuous process. It involves:

• Continuous monitoring
• Updating security measures
• Conducting frequent PCI scanning
• Penetration testing
• Event log monitoring

to ensure all data protection controls are meeting PCI standards. Consistent reinforcement of these measures is crucial to ensuring your organization’s security and compliance.

Yearly audits and quarterly external vulnerability scans are instrumental in scrutinizing an organization’s security posture, proactively addressing weaknesses to prevent them from snowballing into larger issues, and thus aiding in sustained PCI DSS compliance. 

One can engage information security consultants, cybersecurity auditors, and QSAs to take advantage of their expertise in upholding PCI DSS compliance and strengthening security protection.

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Navigating non-compliance: What if you fail?

Every organization aims to avoid non-compliance. However, understanding the possible repercussions and corrective measures in case of a PCI DSS audit failure is necessary. 

Failure to comply with PCI DSS requirements can result in financial penalties, fines, and harm to the organization’s reputation. Such non-compliance may lead to significant financial penalties and adverse impacts on your business.

Overlooking PCI audit findings is not advisable. Disregarding them can lead to financial penalties and fines, as well as reputational harm that may impact customer confidence and future business prospects. As such, it is of utmost importance that organizations take these findings seriously and promptly implement necessary corrective actions to achieve PCI DSS compliance.

Partnering for protection: Engaging with PCI-compliant third parties

Securing PCI compliance isn’t limited to your organization’s systems. It encompasses the entire payment processing ecosystem, including third-party service providers. Engaging with PCI-compliant third parties guarantees the protection of an organization’s data across this ecosystem.

PCI-compliant third parties refer to merchants, processors, and service providers who handle payment card information and adhere to PCI DSS guidelines. Their compliance can be verified through methods such as PCI compliance checklists, which may include:

• Obtaining an ‘Attestation of Compliance’ Checking their status on payment card brand registries
• Requesting completion of a Self-Assessment Questionnaire (SAQ)
• Ensuring their security policies are up to date
• Conducting routine vulnerability scans.

Collaborating with PCI-compliant third parties offers heightened security, enhancingregulatory adherence, building trust, enhancing reputation, and optimizing operational efficiency.

Leveraging technology: Tools for streamlining PCI audits

PCI DSS compliance and the PCI audit process provide a clear framework for organizations to protect this sensitive data. 

While the process may seem daunting, with the right understanding of the requirements, diligent preparation, ongoing reinforcement of security measures, and strategic use of technology and third-party partners, organizations can successfully navigate the PCI audit process and maintain continuous compliance, ensuring the trust and confidence of their customers.

Thoropass streamlines and accelerates your certification by combining automation with self-assessment support and expert insights. Get certified faster with less work and headaches.

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