Why Does My Business need to be PCI Compliant

Table of Contents

Most company owners are aware of the frequency of online fraud nowadays. Most organizations feel fraud is a rising problem, according to Experian’s Global Fraud and Identity Report 2018.

Where can I find out more about fraud

Fraud happens when a person’s payment information is misused. When hackers enter your network and gain access to critical cardholder information, they can commit fraud countless times. Fraud occurs when someone creates a false identity and “tricks” a system into believing they are someone else when they are not.

Global Cyber Fraud Is Substantially Widespread

Because most corporate and consumer data is still insecure, cybercriminals are driven to find new techniques of evading detection as the value of digital data increases.

Consumers must give significant personal information, passwords, and secret questions to open an account. And data breaches offer it to cybercriminals. When data is taken, it is typically exploited for fraud.

Most SMB business owners have no idea how to safeguard their consumers and their organizations against fraud.

One reason is that they rely on outdated cybersecurity technologies rather than investing in new, more advanced data protection solutions. As a result, they often become more vulnerable to data breaches and fraud each month.

Fraud is a constant and rising threat.

Managing fraud risk in e-commerce is a tricky balancing act between client convenience and fraud protection. Unfortunately, firms are prepared to risk fraud losses over losing consumers to their competitors. They strive to balance fraud mitigateion with client service. Ironically, they are putting their companies at risk of losing clients, failing to acquire new ones, and perhaps facing financial fines and legal expenses.

The Ponemon Institute’s 2017 Cost of Data Breach Study, sponsored by IBM, puts the global average cost at $3.6 million, or $141 per data record. That’s a decrease from 2016, yet the average size of data breaches has grown. The average cost of a data breach in the US is $7.3 million.

More than half of organizations still rely on passwords for authentication. Business owners and customers are used to them. And corporate executives know that passwords aren’t safe. If/when their clients’ accounts are breached, they argue that they lack the financial means to employ more modern authentication techniques, not to mention their reputation and future viability. This is, of course, naive.

Data breaches and fraud

Data breaches and fraud seldom occur simultaneously. Hackers will not take consumer data and use it to make a transaction from the same company. So. A breach is difficult to detect for a company.

Security technologies that monitor every payment activity are generally used to detect data breaches. Merchants should adhere to PCI/DSS Standards to detect and mitigate breaches. PCI-DSS audits will assist you in identifying vulnerabilities and deficiencies in your system.

Fraud spreads like cancer.

The key to other password-protected accounts might be obtained by a hacker. Online account opening increases risk. Most individuals have several. If a hacker can crack someone’s email password, they may potentially gain access to their credit card and bank accounts.

Suspect fraud?

Chargebacks, where a client challenges a transaction on their credit card, are a significant signal of fraud. If your chargeback rate exceeds 1%, you may be dealing with fraud.

An IT Managed Services Provider (MSP) can assist you in getting back into compliance and stopping the criminals. They will discover the problem(s) and determine whether there is a data breach. PCI-DSS compliance requires you to do this to stop fraud.

You should also contact the card processor. Often, card providers can identify the point of access or a suspicious pattern of behavior.

How to Avoid Fraud and Data Breach.

Use EMV Technology.

EMV (Europay Mastercard Visa) is a global payment card authentication standard. EMV technology can help you avoid fraud. It verifies that the card is authentic and that the user is authorized.

EMV chips store and secure cardholder data. The card issuer validates a unique cryptogram. Making it harder for hackers to crack the code and grab card information.

If you don’t utilize an EMV-capable terminal and a transaction turns out to be fraudulent, you might be held responsible.

In the UK, EMV has reduced card-present fraud by 80% since 2004. In the US, fraud surged by roughly 70% without EMV throughout this time.

Encrypt Data in Transit.

Taking credit card data is a data breach. Your company is a prime target. Hackers may see you as the “Pot of Gold at the End of a Rainbow” based on the number of card payments you handle each month.

Using end-to-end (E2E) and point-to-point (P2P) encryption can help keep hackers out (P2PE).

  • You don’t need a separate key to decode the data using end-to-end encryption.
  • You may choose what data to encrypt.
  • You can pick particular setups.
  • The file size and processing time are modest.

Point-to-point encryption encrypts data as it travels via a “tunnel.” From the point of sale (POS) to the credit card processor, this is commonly utilized.

If a breach occurs and data is taken, it is useless to hackers since it is encrypted unless they find a way to decrypt it.

Tokenize Data at Rest.

Tokenization divides data into tokens such as words, keywords, symbols, phrases, and components. WORDS, PHRASES, AND ENTIRE SENTENCES It mitigates hackers from utilizing data by replacing it with useless characters. In the case of re-billing, tokenization is helpful. It’s also a cost-effective solution for businesses to safeguard their consumers’ card data.

Combining encryption and tokenization is one of the greatest strategies to guard against data breaches.

What Are Some of The Ways You Can Secure Your Business

  • Ask your MSP to install a next-generation firewall, anti-spam, and anti-virus solutions.
  • Separate your POS and router from other Internet-connected equipment.
  • Keep your business POS off the web. This exposes it to viruses and creates security flaws.
  • Give each user a unique login.
  • Password sharing should be prohibited.
  • Keep your user list current and deactivate unused accounts.
  • Only grant remote access to users with a compelling need.
  • Turn off remote access software while not in use.
  • Upgrade all software and anti-virus/spam applications.
  • Run and review malware scans.
  • Keep your MSP’s scanners up to date.
  • You may also ask your MSP to educate your team on the newest security risks.
  • Prepare your employees to identify unlawful skimming devices on POS and credit card terminals.

MSP Cybersecurity Awareness Training

Teach your staff about password security and enforce it:

  • Don’t use dictionary terms.
  • Don’t use family names.
  • Don’t use other accounts’ passwords.
  • Don’t write down or post your passwords.
  • Use a Password Manager (e.g., LastPass or 1Password).
  • Use complicated passwords (P@ssword1)
  • Separate your business and personal passwords.
  • Change passwords quarterly.
  • Use 9+ character passwords.
    • A haker can crack a 5 character password cracking takes 16 minutes.
    • A six-character password takes five hours to crack.
    • 7-character password: 3 days.
    • 4 months for 8 characters
    • 9 characters in 26 years.
    • Centuries for 10+ characters.
  • Enable Two-Factor Authentication.

Teach staff about ransomware and phishing.

These look to be from the IRS or FBI. Ignore any warnings about fines if you don’t follow instructions! This will encrypt your data and mitigate you from accessing it.

Beware of Emails That

  • Attempt to arouse your curiosity or trust.
  • Have a “check it out now” link.
  • Photo, audio, document, or pdf file may be downloaded.

Don’t believe urgent calls to action:

  • An urgent need to validate the information.
  • Needs your assistance now.
  • Requests a charity donation.
  • You won a lottery or other contest or received money from a deceased relative.

Lookout For Message that:

  • Answer a question you never asked.
  • Sow discord.
  • Start a fight.

Some Red Flags Look Like:

  • Misspelled works
  • Terrible Grammer
  • Typos

Ask Your MSP for PCI Help.

PCI compliance is a continuous procedure that ensures your IT systems are properly sending and storing sensitive data. Network and business processes must be secure.

A data breach caused by non-compliance with PCI DSS might bankrupt a small firm.

It’s not always simple to do alone, But and MSP can Help By:

  • Scaning your network for vulnerabilities that might lead to data breaches.
  • By locking malicious network activity before it can lock down or steal your data.
  • Provides software/ tools and resources to help you comply.
  • Helps Protect against data breaches.
  • Register for a breach assistance/cyber insurance program that reimburses some card brand costs if data is compromised. Some cover data breach expenses of $100,000 or more.

Data Breach, Fraud, and the Consequences

When you take all of this seriously, you’re not just safeguarding your customers’ data but also your business.

After a data breach, most firms’ costs to retain current clients climb. And the expense of acquiring new consumers will rise. Your company’s bottom line will suffer if you combine these cost increases with lost income from consumers who opt to go to your rivals.

You Don’t Have to Face Fraud Alone

IT Managed Services Providers might be your finest security buddy. When it comes to protecting your business from the catastrophic repercussions of credit-card theft and data breaches, the proper IT Partner is worth every penny.

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