advertisement
advertisement

This is page 2 of:

New PCI Lifecycle Gives Retailers A Way To Game The System

June 24th, 2010

A clear benefit of the three-year lifecycle is that it allows much more time for comments from retailers, their associations, processors and system developers, including two Community Meetings, between expected revisions to the standards. If you haven’t attended one of these meetings (I’ve been to each of the past three), let me tell you they are reason enough to justify becoming a Participating Organization.

The Community Meetings offer unique opportunities for direct and often quite blunt feedback to the Council and the card brands. The communication isn’t all one-way. I can’t think of another standard that both announces sunset dates for current requirements and allows for active feedback from those impacted by the standard. The new lifecycle provides almost one year for draft revisions to the standards to be prepared and discussed. This change is a great improvement over today’s three- to five-month review period.

This longer PCI lifecycle represents a maturing of the standard. It also refutes the arguments, which have always been unfair, that PCI is a moving target. The standard itself has barely changed in the past couple of years. For example, the one change taking effect now is banning WEP to protect your wireless networks. And that long overdue change has been two years in coming. What has evolved, though, is the threat landscape, which has led to clarification and maybe some different interpretation by QSAs of what does or does not meet the intent of a particular requirement.

Lest anyone–especially the bad guys–assume that this lifecycle change means PCI is cast in concrete for the entire three years, the Council has explicitly reserved the option to implement what it calls “mid-lifecycle changes” to address new threat vectors or gaps in the standards.

For now, this week’s announcement is good news. But there is bigger news to come. We can expect more announcements concerning changes to both PCI DSS and PA-DSS over the next two months. We can also expect to see reports on emerging technologies (encryption, tokenization and virtualization), clarifying their roles in achieving and maintaining compliance. Bob Russo, general manager of the PCI Council, has promised to release details on changes as they are finalized. Although some of us expected to have seen more details on expected changes by now, the current announcement is a good start. I anticipate additional details in the coming weeks.

Two bits of PCI trivia are emerging. The first is that the Council will release information to Participating Organizations (and I hope QSAs, too) on the revised DSS over the summer and that they will present the changes at the Community Meeting. Nothing will be released publicly until October, when the revised DSS is published. This gives you another reason to join the Council and be in Orlando.

The other tidbit is that it looks like each three years the revised standard will be a “.0” version. That is, I expect October to see PCI DSS version 2.0 with updated version numbers reflecting errata and/or emerging threats to be tagged with a .1 or a .2.

What do you think about the new lifecycle? Will it help you plan and budget your implementation? I’d like to hear your thoughts. Either leave a comment or E-mail me at wconway@403labs.com.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.