ZenGRC

Simply Powerful GRC

Libby Bevin

Say Goodbye to Boring: 6 Innovative Ways to Boost Your Cybersecurity Training

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Introduction

Think cybersecurity training is just a snore fest of jargon and compliance checkboxes? Think again. Welcome to the new era of Cybersecurity training, where ‘boring’ is a forbidden word and engagement is the name of the game.

This guide is all about flipping the script—from just ticking off ‘compliance’ boxes to actually being ‘competent,’ and we’re doing it with training techniques that are as engaging as they are effective.

01 Use Interactive Scenarios

Interactive scenarios are not just about ‘what you should do,’ but also about ‘what happens when you do it.’ They make training interactive, teaching employees the consequences of their actions in a simulated but realistic environment. For example, a scenario could walk employees through a ransomware attack, providing them choices at each step.

Ideas

  • Develop a branching video: Create scenarios where users must decide whether to open a suspicious email, click a link, or download an attachment. Depending on the choice, the scenario can unfold in various ways, providing immediate feedback.
  • Instant feedback: Once the scenario is complete, present a detailed breakdown explaining the potential consequences of each choice made, such as a data breach or financial loss for the company.

02 Utilize Gamification Techniques

Adding gamification elements like badges, points, and leaderboards can transform an otherwise mundane training program into an interactive experience. Studies have shown that a competitive environment enhances learning and retention. For example, Deloitte University saw a 46.6% increase in daily users after implementing gamification in their training programs. – source

For Cybersecurity Awareness Month, we at RiskOptics are leveling up our training program by hosting a competitive trivia game. It’s not just fun; it’s an effective way to reinforce best practices and cybersecurity awareness among our team. 

Ideas

  • Incorporate periodic quizzes: Incorporate questions throughout the training module and offer instant rewards for correct answers, such as digital badges or certificates.
  • Showcase a leaderboard: Gamify the training program by showing who has scored the highest on quizzes or completed modules the quickest.

03 Incorporate Microlearning Modules

Given the busy schedules and short attention spans in today’s workplace, long training sessions often lose efficacy. Microlearning addresses this by providing bite-sized, focused content that can be easily consumed and applied.

Ideas

  • Break down complex topics: Transform 45-minute sessions into a series of 5-10 minute modules, each focusing on a specific aspect of the topic.
  • Implement “just-in-time” training: Send out microlearning modules in response to emerging cyber threats or regulation changes, so that employees can quickly adapt to new scenarios.

04 Facilitate Peer-to-Peer Learning

Learning isn’t just top-down; it often happens horizontally. Peer-to-peer learning is a powerful tool for organizational knowledge-sharing, and can be as simple as a weekly team huddle where everyone shares a cybersecurity tip they learned that week.

Ideas

  • Train the trainer: Identify ‘knowledge champions’ within departments who are trained first. They can then disseminate the information, tailoring it to the specific needs and vernacular of their team.
  • Use internal social networks: Leverage platforms like Slack or Microsoft Teams for sharing tips, articles, and best practices related to cybersecurity, creating an environment of continuous learning.
  • Cybersecurity Newsletter: Craft an internal cybersecurity newsletter, with a twist! Spread new information and best practices featuring comic strips, memes, and interesting stories for colleagues. Delivering the information in a fun or goofy manner through a colleague may help make the concepts more memorable.

05 Host Cybersecurity Challenges

How about hosting regular Cybersecurity Challenges? These internal challenges can range from phishing awareness quizzes to complex ethical hacking tasks for those who are more advanced. Not only do they foster a culture of constant learning, but they also make for a more interactive and engaging experience.

Ideas

  • Internal Hackathon: For your engineering teams, consider hosting an internal hackathon focused on identifying vulnerabilities within your own software or system. This practical experience provides engineers an opportunity to understand how vulnerabilities can be exploited, leading to more informed decisions for future security enhancements.
  • Phishing Simulation: Conduct a company-wide phishing awareness simulation. Use fake emails to try and trick employees into giving away login details. After the simulation, provide a breakdown of common mistakes and tips for recognizing phishing attempts. This can be a real eye-opener and reinforces the importance of cybersecurity vigilance.

06 Obtain Executive Buy-In

Training programs will be far more successful when they have the backing of the organization’s leadership. A top-down focus on training emphasizes its importance to the entire organization. A classic example would be Satya Nadella, Microsoft’s CEO, advocating for a ‘learn-it-all’ culture, which set the tone for the entire organization. – source

Ideas

  • Include video testimonials from C-suite executives emphasizing the importance of cybersecurity.
  • Offer “executive summaries” of the training modules that can be consumed by higher-ups in under 5 minutes, to ensure they understand what’s being taught at all levels.

Conclusion

Changing the narrative around cybersecurity training from ‘necessary evil’ to ‘exciting learning experience’ isn’t pie-in-the-sky thinking; it’s totally doable. From interactive scenarios and gamification to microlearning and peer-to-peer exchanges, the options are endless. So, let’s toss the ‘boring’ label in the trash, and make cybersecurity training a highlight, not a hassle.

Unlocking Growth: Building a Business Case for GRC Applications

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In the ever-evolving landscape of modern business, staying ahead of the curve has become synonymous with survival. Governance, risk, and compliance (GRC) applications have emerged as the guardians of stability, security, and sustainable growth. So how can you assure your organization invests wisely in these essential tools? 

If you’re like me, you’ve struggled in the past to justify the investment in GRC and the necessary technology to support it. In this blog we’ll walk through a RiskInsider’s approach to building a business case for a GRC application. 

Step 1: Understanding Your GRC Needs

Define Your Objectives

Before embarking on the journey to acquire a GRC application, the organization needs a clear sense of what it wants to achieve. This means the organization must define its objectives, whether they pertain to regulatory compliance, risk mitigation, or operational efficiency.

First, create a detailed list of what you want to accomplish through GRC. This might include:

  • Enhancing compliance: Staying ahead of the ever-changing regulatory landscape
  • Risk management: Identifying, assessing, and mitigating risks
  • Streamlining operations: Increasing efficiency and reducing redundancies
  • Improving decision-making: Providing data-driven insights to inform strategic decisions

Identify Pain Points

It’s crucial to understand precisely where your organization is struggling in governance, risk management, and compliance. These pain points will then illuminate where GRC can make the most significant difference.

These challenges should be meticulously documented, whether they are frequent compliance violations, data breaches, or operational bottlenecks. Such documentation not only informs your GRC strategy, but also provides a foundation for subsequent ROI calculations.

Scalability

The tech community utters the word “scalability” all the time, but in theGRC  context it holds significant weight. Your chosen GRC solution must be able to grow and adapt as your organization does.

Consider where you see your organization in five or ten years. Will your GRC needs remain the same, or will they evolve? Assuring your GRC investments align with your long-term growth strategy is paramount.

Step 2: Justifying the Need

Articulating the Need

Often the hardest part of convincing your board of the necessity of GRC applications is articulating the need convincingly. You must convey that GRC isn’t an optional add-on, but rather a fundamental component of modern business.

Emphasize that the digital age has ushered in unprecedented complexities, from regulatory requirements to cybersecurity threats. GRC applications are the shield and compass your organization needs to navigate this terrain successfully.

Quantifying Risks

Boards are most attentive when financial and reputational risks are quantified. Provide concrete examples of how inadequate GRC measures have led to disastrous consequences at other organizations.

Speak in terms of potential financial losses, legal liabilities, and damage to the company’s reputation. The ability to quantify these risks elevates your argument from a vague concern to a tangible, board-level issue. And if you can’t do this with your current processes, it’s a great “need” you can add to your list!

ROI Projections

The language of the boardroom is often the language of numbers, so projecting the return on investment (ROI) from GRC implementation is vital.

Present a clear and well-documented ROI projection that includes both tangible and intangible benefits. This could encompass cost savings through increased efficiency, avoided fines due to non-compliance, and enhanced customer trust.

Step 3: Constructing a Persuasive Business Case

Data-Driven Approach

Boards appreciate a data-driven approach because they communicate in dollars and cents. Leveraging data and analytics to support your case is essential. Showcase how data will be collected, analyzed, and used to improve decision-making in the new tool.

Also consider providing concrete examples of how GRC data can empower your organization to make informed, strategic choices.

Cost-Benefit Analysis

A cost-benefit analysis (CBA) is a powerful tool when justifying GRC investments. A well-constructed CBA outlines the financial expenditure for GRC solutions versus the expected benefits.

Break down the costs, including acquisition, implementation, and ongoing maintenance. Balance these against the expected benefits, such as reduced compliance fines, operational efficiency gains, and risk reduction.

Aligning With Organizational Goals

The most persuasive GRC business cases align with broader organizational goals. So be sure to show how GRC investments support the organization’s mission, vision, and strategic objectives. Demonstrate how GRC isn’t just a compliance checkbox but a driver of growth, stability, and competitiveness.

Step 4: Communicating With the Board

Speak Their Language

To communicate your GRC case to the board effectively, speak their language. Avoid jargon and technical details that might obscure your message. Use relatable examples and analogies to illustrate complex concepts, so that they see you as an ally.

Engage With Confidence

Confidence is contagious! Approach your board presentation with unwavering confidence in the importance and viability of your GRC proposal. Be sure to anticipate potential objections and prepare well-reasoned responses. Confidence and preparation will bolster your credibility.

Interactive Presentations

Nothing is worse than sitting through a boring presentation — so don’t force your board to do so! Use interactive presentations, visuals, and real-world scenarios to engage the audience and make your case come alive. Encourage questions and discussions. A board that actively participates is more likely to appreciate the value of your proposal.

The acquisition of GRC applications is not just a technical matter; it’s a strategic imperative. Check out our comprehensive buyer’s guide to equip yourself with the knowledge and tools necessary to navigate this crucial journey.Remember, GRC is the bedrock upon which sustainable growth and resilience are built in the modern business landscape. By understanding your needs, justifying your case, constructing a compelling business case, and effectively communicating with the board, you pave the way for a future where your organization thrives amid challenges and seizes opportunities. The time to unlock that growth is now. Download the RiskInsider’s Guide to Buying GRC and Risk Management Technology and learn more about selecting a GRC that’s right for you.

What Is the PCI DSS Attestation of Compliance?

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Compliance with the Payment Card Industry Data Security Standard (PCI DSS) can be challenging for many retailers and other businesses that process payment card transactions. So sometimes the cynical question arises: how bad could non-compliance with PCI-DSS be? 

Pretty bad, actually. 

Any company that processes, stores, or transmits credit card information must comply with the PCI DSS. If not, your payment processor can take action. For instance, in 2010 Heartland Payment Systems agreed to pay Visa cardholders $60 million for a data breach Heartland had suffered. More recently, in 2022 convenience store chain Wawa had to shell out $8 million because of a data breach that compromised sensitive information across all Wawa stores.

One important step in achieving PCI compliance is the Attestation of Compliance, typically known as the AoC. In this guide we’ll delve deeper into how getting an AoC can help you save money and assure compliance.

What Is a PCI Attestation of Compliance?

A PCI DSS Attestation of Compliance (AoC) is a document that declares a merchant’s compliance status with the PCI DSS. It validates the company’s adherence to PCI DSS, an information security standard for organizations dealing with credit cards issued by major card brands.

Who Needs an Attestation of Compliance?

Any business managing cardholder data must obtain an Attestation of Compliance (AoC) by completing a validation assessment with a Qualified Security Assessor (QSA). The AoC proves compliance with the 12 data security standards of the PCI DSS. 

Merchants aren’t required by law to adopt PCI standards. Rather, a consortium of major credit card brands known as the Payment Card Industry Security Standards Council (PCI SSC) developed the PCI DSS standard, and the consortium requires PCI DSS compliance if your business wants to accept and process payment card transactions. The bottom line is that if your business wants to accept credit cards, you must implement the PCI DSS standard or the credit card brands won’t do business with you. 

That said, the standard does establish different tiers of compliance, depending on the size of your business and the number of credit card transactions you process. The larger your operation, the more rigorous compliance standards you must meet. 

Merchant and service provider levels

Merchants and service providers are classified into levels based on the number of transactions processed in a given year. The levels differ slightly by credit card brand, but assessment requirements for each level are consistent. Generally, the greater number of transactions processed by a merchant or service provider, the more stringent the assessment criteria and methodology.

There are four compliance levels for merchants and two for service providers.  

How Long Is an Attestation of Compliance Valid?

Compliance begins after the qualified security auditor finishes a successful audit of your program and gives you the Attestation of Compliance. The AoC is then valid for one year from the day the auditor signs it.

How often should an attestation of compliance be submitted?

Organizations should send their AoC documents annually to their credit card acquirer, reaffirming their ongoing commitment to PCI DSS compliance standards.

How Do I Get an Attestation of Compliance?

Here’s a step-by-step process to obtain your AoC:

Step 1: Comply With PCI DSS standards

Create a secure network for cardholder data input and implement robust security measures to safeguard it. You must also enforce strict access controls for credit card data protection and maintain comprehensive information security policies, among other PCI DSS obligations.

Step 2: Determine compliance level and assessment type

Once you’re confident in your compliance status, determine your PCI compliance level and prepare for the assessment conducted by the QSA. 

If your organization falls into Merchant Levels 3 or 4 (processing fewer than 1 million transactions per year), you only need to complete a Self-Assessment Questionnaire (SAQ) for review by a QSA, rather than have a full audit from the QSA directly. (Note that there are various PCI SAQ types, so you should choose the one that fits your organization the best.) 

For organizations classified as PCI compliance Levels 1 or 2, an SAQ and/or a QSA audit may be required.

Step 3: Schedule and complete the assessment

The SAQ review can be completed in person or virtually, depending on your QSA’s preferences. If, based on your SAQ, the QSA confirms your compliance with PCI DSS, he or she will then issue your AoC. 

For organizations falling under higher compliance levels and requiring a QSA audit, the QSA will assess your security posture, systems, and overall compliance with PCI DSS. If your organization is PCI-compliant following this evaluation, you’ll receive your AoC (and likely a separate document, a “Report on Compliance,” as well).

ZenGRC Excels at Compliance Management

PCI compliance is an endeavor with many moving parts, so managing the project with spreadsheets and other manual processes is a fool’s errand; too many important details may be overlooked or completed incorrectly. You need a better solution — so choose ZenGRC over spreadsheets for efficient evidence and audit management across compliance frameworks. 

ZenGRC has user-friendly compliance, risk, and workflow management software preloaded with common standards such as PCI, HIPAA, and SOC; this allows simultaneous compliance management, since you’ll probably be striving for compliance with PCI and other regulations at the same time. ZenGRC is a centralized source of truth, assuring constant compliance and PCI audit readiness, complete with revision-controlled policies, intuitive workflow features, and insightful reporting.

Get a demo to experience how ZenGRC streamlines compliance and vulnerability management.

What Is a SOC 2 Type 2 Audit?

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A System and Organization Controls for Service Organizations 2 (SOC 2) audit assesses how well a service provider’s internal controls and practices safeguard customer data’s privacy and security. Service providers include those providing Software-as-a-Service (SaaS) or cloud computing services, as well as other professional services such as consulting that third-party vendors routinely offer.

The common criteria for SOC 2 audits are the Trust Services Principles established by the American Institute of CPAs (AICPA). These core principles include security, availability, processing integrity, confidentiality, and privacy. SOC 2 audits evaluate an organization’s controls against these criteria to assure customers their sensitive data is appropriately managed and protected.

SOC 2 audits are becoming increasingly important for cloud services, healthcare organizations, companies handling personal data, and any entity responsible for sensitive customer information. Regular SOC 2 assessments can help reduce risks from data breaches while demonstrating compliance with regulations like the General Data Protection Regulation (GDPR).

What is a SOC 2 Audit?

A SOC 2 auditor measures the vendor’s internal controls and practices against applicable Trust Services Criteria developed by the American Institute of Certified Public Accounting (AICPA). The resulting audit report, or attestation, states whether the vendor’s controls are sufficient to assure data security – or, if not, where the vendor needs to improve.

The five Trust Services Criteria are as follows:

  •   Security. The system is protected against unauthorized access (both physical and logical).
  •   Availability. The system is available for operation and use as committed or agreed.
  •   Processing integrity. System processing is complete, valid, accurate, timely, and authorized to meet the organization’s objectives.
  •   Confidentiality. Information designated as “confidential” is protected according to policy or agreement.
  •   Privacy. Personal data is collected, used, retained, disclosed, and disposed of in conformity with the commitments in the entity’s privacy notice and with criteria outlined in Generally Accepted Privacy Principles issued by the (AICPA).

Type 1 vs. Type 2

SOC 2 audits can be one of two types.

A Type 1 report only assesses whether the vendor’s controls are adequately designed to achieve specific control objectives (usually those defined by the TSCs used to guide the audit) as of a specific date. In other words, a Type 1 report is a snapshot of the vendor’s security controls simultaneously.

A Type 2 report goes further to test whether those controls then work as intended over some time (say, six months or one year).

SOC 2 reports of either type are usually meant for something other than widespread circulation. The company requesting the audit, the vendor undergoing it, and the audit firms performing it can all see the report. Still, since each SOC 2 audit has a specially tailored scope defined by the TSCs used in the audit, the final SOC 2 report is intended to be private from others. (In contrast to a SOC 3 report, which is.)

Benefits of SOC 2 Type 2 compliance

SOC audits highlight operational effectiveness and integrity. Key benefits include:

     1. Trust and Assurance:

  • Provides stakeholders assurance of robust controls and data protection.
  • Shows adherence to standards, building confidence.

     2. Regulatory Compliance:

  • SOC reports independently evaluate controls to meet regulations.
  • Assurance helps satisfy regulators and avoid penalties.

     3. Risk Management:

  • SOC audits identify data management, security, and processing risks.
  • Assessing controls addresses vulnerabilities.

     4. Competitive Advantage:

  • Shows commitment to quality and security.
  • Vendors with SOC audits may be preferred.

     5. Vendor and Third-Party Management:

  • Companies require SOC audits to validate vendor controls.
  • SOC reports facilitate vendor oversight.

     6. Operational Efficiency:

  • Preparing for an audit can optimize processes.
  • Feedback enhances effectiveness.

     7. Financial Integrity:

  • SOC 1 focuses on financial reporting controls.

     8. Market Confidence:

  • Adhering to standards and SOC audits builds confidence.

     9. Legal Protection:

  • Shows proactive security after incidents.

     10. Transparency:

  • Provides insights on controls and operations.

In essence, SOC audits are a critical mechanism for demonstrating accountability, enhancing operational efficiency, and fulfilling regulatory requirements, which collectively contribute to the overall credibility and success of an organization. All audits are conducted against the trust services categories to test information security and operating effectiveness.

What are SOC 2 Type 2 requirements?

To obtain SOC 2 Type 2 certification, companies must meet several key requirements:

  • Have controls and safeguards that align with Trust Services Criteria from the American Institute of Certified Public Accountants (AICPA). These emphasize security, availability, processing integrity, confidentiality, and privacy.
  • Prove effective operation of controls over a minimum 6-month period. This demonstrates ongoing compliance versus just a point-in-time audit.
  • Hire an accredited CPA firm to perform the audit. They must follow AICPA attestation standards.
  • Implement remediation for any issues uncovered during the audit. Auditors will verify fixes.
  • Adhere to regulations like HIPAA and PCI DSS if applicable. SOC 2 also helps satisfy frameworks like ISO 27001.
  • Establish proper control operation for all relevant systems and service components.
  • Provide infrastructure documentation like policies, processes, and procedures.
  • Maintain documentation related to change management and risk assessments.
  • Give auditors access to facilities, systems, and staff involved in services.
  • Develop a roadmap for how to prepare using readiness assessments and SOC 2 Type 1 audits.
  • Allocate resources for audit preparation using templates and automation where possible.

SOC 2 Type 2 certification requires an ongoing commitment to internal control monitoring, transparency, compliance, and continuous security improvement. The extensive evaluation provides customers assurance their data is properly safeguarded.

What does a SOC 2 audit include?

A SOC 2 audit is an extensive evaluation of the policies, procedures, systems, facilities, and personnel involved in handling customer data. Auditors use multiple methods to validate that an organization’s security and privacy controls are functioning effectively.

The documentation review examines information security policies, privacy policies, data classification procedures, vendor management programs, incident response plans, and other policies and procedures related to the control environment. Gaps or issues in written policies are identified.

Interviews are conducted with personnel in management, operations, security, compliance, and IT to understand how controls are implemented in actual practice. Differences between documented policies and real-world procedures may emerge.

Inspections of facilities, including data centers, call centers, and offices, evaluate physical access controls like badge access systems, cameras, locks, and environmental monitoring.

Change management analysis reviews records of modifications to systems, policies, and personnel to ensure proper vetting and risk analysis are performed.

When Should You Conduct a SOC 2 Type 2 Audit?

There are several strategic times when organizations should undertake a SOC 2 Type 2 audit:

  • Before Renewing a Major Contract: Get certified before renegotiating terms with a large customer to build trust.
  • After a Merger or Acquisition: Evaluate controls after integrating entities to identify and address any gaps.
  • When Expanding Operations: Assess controls when adding new services, technologies, or data centers to maintain compliance.
  • When Upgrading Systems: Audit how changes to infrastructure like cloud migrations affect security and availability.
  • After a Cybersecurity Incident: Demonstrate controls are strengthened after a breach or attack.
  • To Maintain Certification: Conduct annually or biannually to keep status current.
  • When Regulations Change: Ensure controls satisfy new rules and requirements.
  • To Compare Against Competitors: Gain an advantage by undergoing audits more frequently than peers.
  • To Assure Customers: Provide regular assurance that controls effectively protect sensitive data.
  • To Support Vendors: Require third parties to furnish SOC 2 Type 2 reports for risk management.

Proper planning is key as SOC 2 audits evaluate the entire control environment. Frequent assessments demonstrate an ongoing commitment to customers, regulators, and partners.

How do you conduct a SOC 2 Type 2 audit?

Successfully undergoing a SOC 2 Type II audit involves careful preparation and execution across multiple phases:

  1. Planning: Determine the scope and American Institute of CPAs (AICPA) Trust Services Criteria for the audit. Assemble a team to own the process. Develop a timeline aligned with business needs.
  2. Gap Analysis: Compare existing controls against SOC 2 requirements. Identify deficiencies and create plans to remediate them.
  3. Policy Update: Revise documentation like security policies, procedures, and contracts to fulfill SOC 2 criteria.
  4. Control Implementation: Make necessary improvements to security controls, access restrictions, monitoring, encryption, etc., per the gap analysis.
  5. Readiness Assessment: Conduct an informal “mock audit” to validate preparedness for the accurate audit.
  6. Auditor Selection: Vet and select a licensed CPA firm to perform the independent SOC 2 assessment.
  7. Audit Engagement: Work collaboratively with the auditor during system and facility inspections, staff interviews, and policy reviews.
  8. Remediation: Address any remaining issues or weaknesses based on audit findings to strengthen security practices and controls.
  9. Certification: The auditor provides the official SOC 2 Type 2 audit report and certificate once satisfied with remediation efforts.
  10. Monitoring: Implement ongoing monitoring of controls to maintain compliance until the next audit.

Rigorous controls, updated documentation, remediating gaps, and transparency with auditors during the process led to successful SOC 2 Type II certification.

SOC 2 Compliance is Made Easy with ZenGRC

If SOC 2 certification were easy, everyone would have done it already. Unfortunately, SOC 2 is a complex information security and privacy framework that changes frequently and can be confusing – especially for organizations trying to manage compliance using Excel or other spreadsheets. You can simplify the task and save time by using a digital solution.

ZenGRC, a compliance and audit management system, provides a faster, smoother road to compliance by reducing time-consuming manual procedures, expediting onboarding, and keeping you informed about the status and efficacy of your programs.

You gain a unified, real-time view of risk and compliance with seamless integrations with tools within the platform, providing the context-specific perspective necessary to make savvy, strategic choices that keep your company secure and earn the trust of your customers, partners, and employees.

An automated and integrated database of references will keep you ahead of the constantly changing regulatory landscape. RiskOptics allows you to:

  •   Get audit-ready in under 30 minutes
  •   Alleviate staff burdens with collaboration and automated workflows
  •   Learn about the impact of compliance initiatives on your cyber risk posture to prioritize resources

ZenGRC provides the visibility you need to analyze the progress and success of your compliance activities and their influence on risk reduction. An audit overview report summarizes the frameworks, requirements, and controls in scope, the activities to be done, and the present audit status.

Schedule a demo today to learn how ZenGRC can streamline your audit process.

Do Banks Need to be PCI Compliant?

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Financial institutions are one of the most heavily regulated industries around, and for good reason. Access to the personal information and funds of their customers makes banks a popular target with hackers and a dangerous location for a cybersecurity breach.

With all the regulations a bank needs to obey, you may have overlooked the Payment Card Industry Data Security Standard or PCI DSS.

All parties that handle credit card data from one of the four major U.S. credit card brands (Visa, Mastercard, Discover, and American Express), as well as JCB International (an international payment brand based in Japan), are required to comply with PCI DSS requirements.

The PCI Security Standards Council maintains the PCI DSS. If your bank works with these companies (and most do), then you’ll need to meet the compliance standards that the council has put in place.

There are many benefits to PCI compliance for financial institutions. In addition to providing a solid foundation for credit card security, achieving compliance can also help you gain the confidence of your customers and give you an edge against your competitors.

The requirements are specifically designed to protect against security breaches, which means that your data is automatically more secure. The PCI DSS guidelines also overlap with many other security frameworks, giving you a head start if you need to achieve compliance in other areas.

What Is PCI DSS?

PCI DSS is a set of information security standards put in place to assure that organizations that accept, process, store, or transmit payment card information maintain secure environments to protect consumers and merchants.

Simply put, the PCI DSS standards apply to any organization that holds, processes, or passes cardholder information from any credit or debit card branded with the logo of any of the card brands.

Even if an organization processes just four credit card transactions a month, it must be PCI compliant. A company that uses a third-party payment processor must still comply with PCI standards.

Also, if an organization doesn’t store credit card data, but cardholder data does pass through its server, it must comply with PCI requirements.

The PCI Council offers information to financial institutions and other organizations about how to prevent and detect fraud and data loss and how they should react during data breaches.

Is PCI DSS a Legal Requirement for Banks?

No, PCI DSS is not required by law. Instead, PCI DSS compliance is required by the contracts that govern participation with the major payment card brands.

Financial institutions, including issuing banks and acquiring banks, as well as merchants and service providers that process transactions, enter into contracts with the five card brands that enable those financial firms to process credit card information.

Issuing banks are banks that offer credit cards to consumers. Acquiring banks are the financial institutions that hold merchants’ bank accounts, facilitate payment processing through the card processors, and deposit funds on behalf of the merchants.

If your organization falls under either of these categories, then PCI DSS compliance will be legally required of your company.

Becoming a PCI Compliant Bank

The PCI DSS has 12 primary requirements for those wishing to prove compliance:

  1. Protect all cardholder data with a system of well-maintained firewalls.
  2. Change all passwords from any defaults to unique and secure options.
  3. Any stored cardholder data should be protected.
  4. Encrypt any cardholder data that is transmitted via open networks.
  5. Use antivirus software and make sure it is up-to-date.
  6. Make sure that your systems and applications are secure.
  7. Access to cardholder data should be permitted only on a need-to-know basis.
  8. Any staff members with access should be assigned a unique ID.
  9. Any physical access to cardholder data should be restricted.
  10. All-access from staff should be closely monitored.
  11. All security measures should be tested regularly.
  12. Your information security policies should be consistent and clear to all employees.

Within these 12 main requirements are 281 additional directives, which may or may not apply to you based on the size of your company and how many credit card transactions you process in a given year.

To become PCI DSS compliant, you first must determine which standards you need to meet. Then, assess your existing program to see where your data protection is sufficient and where you may need to make changes to meet the necessary security requirements.

Establishing and proving compliance with all of the appropriate standards can be a challenging and time-consuming process.

Fortunately, the PCI SSC provides organizations with the tools to implement the PCI data security standards, including PCI Self-Assessment Questionnaires (PCI SAQs), training and education, assessment and scanning qualifications, and product certification programs.

Should Banks Complete a PCI Assessment?

Yes. PCI assessments result in either a Report on Compliance (ROC), an Attestation of Compliance (AOC), or both. The merchant provides its RoC or AoC to its credit card acquirer annually to prove compliance with PCI requirements.

As with the assessment methods, the proof of compliance method is determined by the merchant level and the requirements of the specific card brand. Higher-level merchants may also need to provide quarterly network vulnerability scans performed by an Approved Scanning Vendor (ASV).

A PCI Self-Assessment Questionnaire (SAQ) is used by lower-level businesses (with fewer transactions) to self-assess their compliance.

There are multiple SAQs available, and the specific SAQ to use is determined by how customers perform credit card transactions (for example, card not present versus card present or fully outsourced authorizations versus partially outsourced authorizations).

If you work for a financial institution, you may have met some or all of the PCI DSS requirements based on previous compliance requirements or government audits. This head start is convenient, but you must ensure all PCI DSS standards are accounted for to prove compliance.

The bottom line is that if your bank issues credit cards on behalf of the major credit card companies, it must assure PCI DSS compliance.

Non-compliance could result in the loss of your privileges for both issuing and processing credit cards, as well as potential fines. Moreover, loss of your customers’ data due to a breach can result in loss of consumer confidence and lawsuits.

PCI Compliance Best Practices for Banks

The PCI Security Standards Council has a comprehensive list of resources to help you achieve and maintain compliance. Here’s a summary of the recommendations made in their “Best Practices for Maintaining PCI DSS Compliance” supplement:

Develop and Maintain a Sustainable Security Program

To maintain compliance, banks must first comprehend the PCI DSS’s principal goal, securing cardholder data.

Cardholder information and other consumer data should only be kept for as long as is required. Any cardholder data not necessary for business purposes should be deleted from the environment per the organization’s data retention policy. 

Develop Program, Policy, and Procedures

A compliance program is a structured collection of policies, processes, and procedures inside an organization with assigned responsibilities to assure the business’s long-term compliance with applicable and essential standards and regulations.

A structured compliance program enables a company to monitor the health of its security measures, be proactive if one fails, and effectively communicate actions and compliance status throughout the company.

When developing a compliance program, it is critical to grasp the distinctions between the following concepts:

  • A program usually contains strategic objectives, roles and duties, and a plan for achieving company goals.
  • A policy often contains a declaration of management purpose or mandatory restrictions.
  • A process/procedure often defines the step-by-step actions responsible staff must accomplish per the program and supporting rules.

Develop Performance Metrics to Measure Success

By defining a set of metrics that describe the performance of the installed security controls and compliance program, organizations should be able to quantify their capacity to sustain security practices and PCI DSS compliance.

Compliance managers may utilize metrics to illustrate the performance of security programs, distribute resources correctly, and show stakeholders the efficiency and return on security investment.

Metrics can be computed using a mix of security-status monitoring, security-control evaluation data, and data gathered from one or more security controls or technologies.

Assign Ownership for Coordinating Security Activities

Maintaining PCI DSS compliance demands a well-managed program that integrates security into the organization’s day-to-day operations. Centralizing multiple technologies, procedures, and people helps ongoing compliance. A person in charge of compliance should be:

  • Assigned overall authority for these operations,
  • Qualified to carry out such duties.
  • Knowledgeable of the organization’s corporate structure and payment methods.
  • Given sufficient funds and resources.
  • Given the necessary power to manage and utilize such resources efficiently. 

Emphasize Security and Risk Management to Attain and Maintain Compliance

PCI DSS establishes a minimal set of security criteria for payment card account data protection. PCI DSS measures may not be sufficient to fully mitigate the financial risks connected with various forms of sensitive data that enterprises may have and should not be regarded as a comprehensive checklist for addressing all security concerns.

A more robust strategy would be to focus on developing a security culture, protecting your organization’s IT infrastructure, and then allowing compliance to follow. Choosing security controls using a risk-based approach will enable businesses to adjust particular security measures to address varied degrees of operational risks.

Continuously Monitor Security Controls

The first stage in developing a continuous monitoring strategy is to create systems for conducting periodic audits of all relevant security measures. These procedures should:

  • Be closely connected with the organization’s business and security objectives.
  • Cover all facilities and sites included in the scope, including retail shops, data centers, and back-office locations.
  • Ensure that PCI DSS standards are in place and functioning correctly.
  • Ensure that workers continue to adhere to acceptable security practices.
  • Consider any changes inside the company, the operational environment, and the technologies that have been adopted.
  • Produce adequate documentation to demonstrate ongoing compliance with security standards.

Detect and Respond to Security Control Failures

Organizations must be able to detect security control failures during the control review or control monitoring procedures. It is also critical that businesses have mechanisms in place for responding to security control failures promptly and that those processes are tested regularly.

Maintain Security Awareness

Data breaches are increasingly including the use of social-engineering tactics in addition to the exploitation of technological weaknesses.

While implementing security monitoring and access-management solutions allows the company to minimize its risk profile, it does not ensure that risk can be reduced to negligible levels. No security technology can offer this level of risk reduction.

This is when information security awareness training comes in handy. PCI DSS Requirement 12.6 specifies the requirement to develop a security awareness program, define communication methods, give such training upon hiring and yearly, and execute effective security awareness communication channels.

Monitoring Compliance of Third-Party Service Providers

Third-Party Service Providers (TPSP) are frequently in charge of implementing and maintaining the security measures necessary to comply with PCI DSS. Entities and their TPSPs must have an explicit knowledge of their roles and duties to comply with applicable PCI DSS criteria.

Monitoring TPSP compliance status is an essential part of ensuring compliance because it allows the entity to assess if a change in status necessitates a change in the relationship.

Evolve the Compliance Program to Address Changes

Continuous compliance demands concentrated effort and collaboration. Organizations used to a point-in-time approach to PCI DSS compliance may struggle to nurture security across their people, processes, and technology as needed to ensure long-term compliance.

Compliance Managers should devote resources to monitoring and effectively communicating to all impacted parties newly detected risks, organizational structure changes, and industry developments that may influence the organization’s PCI DSS compliance activities.

Failure to assess how such changes affect the organization’s risk environment and PCI DSS scope may expose critical business processes to disruption or non-compliance. 

ZenGRC Helps Organizations Manage Their Compliance

If you need to prove PCI DSS compliance, you’ll need the right tools. Spreadsheets and other outdated risk management methods can lead to confusion, redundancies, and dangerous gaps in your data security controls.

Whether performing a self-assessment or preparing for an audit, ZenGRC is a software platform designed to make compliance more straightforward than ever before. By centralizing your information and automating assignments and requests, ZenGRC can streamline your compliance process and ensure no detail is left to chance.

Schedule a demo today and learn how ZenGRC can help you enhance your vulnerability management program and keep your customer’s data secure.