null Mumbai Chapter - March 2013 Meet

1. PCI DSS
for Penetration Testers
K. K. Mookhey

2. What is PCI DSS ?
 Payment Card Industry (PCI) Data Security Standard (DSS)
 PCI DSS provides a baseline of technical and operational
requirements designed to protect cardholder data.
 PCI DSS comprises a minimum set of requirements for
protecting cardholder data, and may be enhanced by additional
controls and practices to further mitigate risks

3. Why Is Compliance with PCI DSS
Important?
 A security breach and subsequent compromise of payment
card data has far-reaching consequences for affected
organizations, including:
 Regulatory notification requirements,
 Loss of reputation,
 Loss of customers,
 Potential financial liabilities (for example, regulatory and other
fees and fines), and
 Litigation.

5. PCI DSS
Payment Card Industry Data Security Standard
 Standard applies to:
 Merchants
 Service Providers (Third Third-party vendor, gateways)
 Systems (Hardware, software)
 Who:
 Store cardholder data
 Transmit cardholder data
 Process cardholder data
 Inclusive of:
 Electronic Transactions
 Paper Transactions

6. The PCI Security Standards Council
(PCI SSC)
 An open global forum, launched in 2006, responsible for the
development, management, education, and awareness of the PCI
Security Standards, including:
 Data Security Standard (DSS)
 Payment Application Data Security Standard (PA-DSS)
 Pin Transaction Security (PTS)
 Formally known as Pin-Entry Device (PED)
PCI PTS PCI PA-DSS PCI DSS

7. PCI SSC- Standards

8. PIN Transaction (PTS) Security
Requirements
• It is a set of security requirements focused on characteristics and
management of devices used in the protection of cardholder PINs
and other payment processing related activities.
• The requirements are for manufacturers to follow in the design,
manufacture and transport of a device to the entity that
implements it.
• Financial institutions, processors, merchants and service providers
should only use devices or components that are tested and
approved by the PCI SSC.
www.pcisecuritystandards.org/security_standards/ped/pedapprovallist.
html

9. Payment Application Data Security
Standard (PA-DSS)
• The PA-DSS is for software developers and integrators of payment
applications that store, process or transmit cardholder data as part
of authorization or settlement when these applications are sold,
distributed or licensed to third parties.
• Most card brands encourage merchants to use payment applications
that are tested and approved by the PCI SSC.
Validated applications are listed at:
www.pcisecuritystandards.org/security_standards/pa_dss.shtml

10. PCI Data Security Standard (DSS)
• The PCI DSS applies to all entities that store, process, and/or
transmit cardholder data.
• It covers technical and operational system components
included in or connected to cardholder data.
• If you are a merchant who accepts or processes payment
cards, you must comply with the PCI DSS.

11. The PCI Security Standards Founders

12. Data on Payment Card

13. Track 1 vs. Track 2 Data

14. Track 1 vs. Track 2 Data (cont..)
 If full track (either Track 1 or Track 2, from the magnetic stripe, magnetic-
stripe image in a chip, or elsewhere) data is stored, malicious individuals
who obtain that data can reproduce and sell payment cards around the
world.
 Full track data storage also violates the payment brands' operating
regulations and can lead to fines and penalties.

15. What to store & what not to store

16. Guidelines for Storage
1. One-way hash functions based on strong cryptography – converts the
entire PAN into a unique, fixed-length cryptographic value.
2. Truncation – permanently removes a segment of the data (for example, retaining
only the last four digits).
3. Index tokens and securely stored pads – encryption algorithm that combines
sensitive plain text data with a random key or “pad” that works only once.
4. Strong cryptography – with associated key management processes and
procedures. Refer to the PCI DSS and PA-DSS Glossary of Terms, Abbreviations and
Acronyms for the definition of “strong cryptography.”

17. The PCI Data Security Standard
Six Goals, Twelve Requirements
Build and Maintain a 1. Install and maintain a firewall configuration to protect cardholder
Secure Network data
2. Do not use vendor-supplied defaults for system passwords and
other security parameters
Protect Cardholder Data 3. Protect stored cardholder data
4. Encrypt transmission of cardholder data across open, public
networks
Maintain a Vulnerability 5. Use and regularly update anti-virus software or programs
Management Program 6. Develop and maintain secure systems and applications
Implement Strong Access 7. Restrict access to cardholder data by business need-to-know
Control Measures 8. Assign a unique ID to each person with computer access
9. Restrict physical access to cardholder data
Regularly Monitor and 10. Track and monitor all access to network resources and cardholder
Test Networks data
11. Regularly test security systems and processes
Maintain an Information 12. Maintain a policy that addresses information security for
Security Policy employees and contractors

18. Other PCI Standards

19. PCI SSC- Standards

20. PIN Transaction (PTS) Security
Requirements
• It is a set of security requirements focused on characteristics and
management of devices used in the protection of cardholder PINs
and other payment processing related activities.
• The requirements are for manufacturers to follow in the design,
manufacture and transport of a device to the entity that
implements it.
• Financial institutions, processors, merchants and service providers
should only use devices or components that are tested and
approved by the PCI SSC.
www.pcisecuritystandards.org/security_standards/ped/pedapprovallist.
html

21. PIN Transaction (PTS) Security
Requirements (cont..)
• Objective 1 : PINs used in transactions governed by these
requirements are processed using equipment and methodologies
that ensure they are kept secure.
• Objective 2 : Cryptographic keys used for PIN
encryption/decryption and related key management are created
using processes that ensure that it is not possible to predict any key
or determine that certain keys are more probable than other keys.
• Objective 3 : Keys are conveyed or transmitted in a secure
manner.

22. PIN Transaction (PTS) Security
Requirements (cont..)
• Objective 4 : Key-loading to hosts and PIN entry devices is
handled in a secure manner.
• Objective 5 : Keys are used in a manner that prevents or detects
their unauthorized usage.
• Objective 6 : Keys are administered in a secure manner.
• Objective 7 : Equipment used to process PINs and keys is
managed in a secure manner.

23. Payment Application Data Security
Standard (PA-DSS)
• The PA-DSS is for software developers and integrators of payment
applications that store, process or transmit cardholder data as part
of authorization or settlement when these applications are sold,
distributed or licensed to third parties.
• Most card brands encourage merchants to use payment applications
that are tested and approved by the PCI SSC.
Validated applications are listed at:
www.pcisecuritystandards.org/security_standards/pa_dss.shtml

24. PA-DSS (cont..)
• Requirement 1 : Do not retain full magnetic stripe, card
verification code or value (CAV2, CID, CVC2, CVV2), or PIN
block data
• Requirement 2 : Protect stored cardholder data
• Requirement 3 : Provide secure authentication features
• Requirement 4 : Log payment application activity
• Requirement 5 : Develop secure payment applications
• Requirement 6 : Protect wireless transmissions
• Requirement 7 : Test payment applications to address
vulnerabilities
• Requirement 8 : Facilitate secure network implementation
• Requirement 9 : Cardholder data must never be stored on
a server connected to the Internet

25. PA-DSS (cont..)
• Requirement 10 : Facilitate secure remote access to
payment application
• Requirement 11 : Encrypt sensitive traffic over public
networks
• Requirement 12 : Encrypt all non-console administrative
access
• Requirement 13 : Maintain instructional documentation
and training programs for customers, resellers, and
integrators

26. Thank you!
Questions / Queries
NETWORK INTELLIGENCE INDIA PVT. LTD.
AN ISO/IEC 27001:2005 CERTIFIED COMPANY
Web http://www.niiconsulting.com
Email kkmookhey@niiconsulting.com
Tel +91-22-2839-2628
+91-22-4005-2628
Fax +91-22-2837-5454