PCIP Exam Study Guide with Solutions 2024

PCI Data Security Standard (PCI 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 accept or process payment cards, PCI DSS applies to you. Sensitive Authentication Data Merchants, service providers, and other entities involved with payment card processing must never store sensitive authentication data after authorization. This includes the 3- or 4- digit security code printed on the front or back of a card (CVD), the data stored on a card's magnetic stripe or chip (also called "Full Track Data") - and personal identification numbers (PIN) entered by the cardholder. Card Verification Data Codes (CVD) 3 or 4 digit code that further authenticates a not-present cardholder Visa-CVV2 MC- CVC2 Discover- CVD JCB-CAV2 AmEx- CID Requirement 1 Install and maintain a firewall configuration to protect cardholder data Network devices in scope for Requirement 1 Firewalls and Routers- Routers connect traffic between networks, Firewalls control the traffic between networks and within internal network QIR Qualified Integrators & Resellers Qualified Integrators & Resellers- authorized by the SSC to implement, configure and/or support PA-DSS payment applications. Visa requires all level 4 merchants use QIRs for POS application and terminal installation and servicing Compensating Controls An alternative control, put in place to satisfy the requirement for a security measure that is deemed too difficult or impractical to implement at the present time. Permitted reasons for using Compensating Controls Organizations needing an alternative to security requirements that could not be met due to legitimate technological OR documented business constraints, but has sufficiently mitigated the risk associated with the requirement through implementation of other compensating controls Examples of Compensating Controls (i) Segregation of Duties (SOD) and (ii) Encryption Compensating Controls must: 1) Meet the intent and rigor of the original stated requirement; 2) Provide a similar level of defense as the original stated requirement; 3) Be "above and beyond" other PCI DSS requirements (not simply in compliance with other PCI DSS requirements); and 4) Be commensurate with the additional risk imposed by not adhering to the original stated requirement. Compensating Controls Worksheet 1) Constraint; 2) Objective; 3) Identified Risk; 4) Define Compensating Control; 5) Validate Controls; 6) Maintenance (COIDVM) Card Data that cannot be stored by Merchants, Service providers after authorization Sensitive Authentication Data. i) 3- or 4- digit security code printed on the front or back of a card, ii) data stored on a card's magnetic stripe or chip (also called "Full Track Data"), and iii) personal identification numbers (PIN) entered by the cardholder Card Data that MAY be stored i) cardholder name, ii) service code (identifies industry iii) Personal Account Number (PAN) iv) expiration date may be stored. Network Segmentation The process of isolating the cardholder data environment from the remainder of an entity's network Not a requirement but strongly recommended. Report on Compliance (ROC) Prepared at the time of the assessment of PCI compliance and comprehensively provides details about the assessment approach and compliance standing against each PCI DSS requirement What is included in the Report on Compliance (ROC)? ROC includes (1) Executive summary, (2) description of scope of work and approach taken, (3) details about reviewed environment, (4) contact information and report date, (5) quarterly scan results and (6) findings and observations. Steps to take for a PCI Assessment (hint: SARA's Remediation) 1. Scope - determine which system components and networks are in scope for PCI DSS 2. Assess - examine the compliance of system components in scope following the testing procedures for each PCI DSS requirement 3. Report - assessor and/or entity completes required documentation (e.g. Self- Assessment Questionnaire (SAQ) or Report on Compliance (ROC)), including documentation of all compensating controls 4. Attest - complete the appropriate Attestation of Compliance (AOC) 5. Submit - submit the SAQ, ROC, AOC and other requested supporting documentation such as ASV scan reports to the acquirer (for merchants) or to the payment brand/requestor (for service providers) 6. Remediate - if required, perform remediation to address requirements that are not in place, and Who can complete a Self Assessment Questionnaire (SAQ)? i) the organization themselves, or ii) by a third party (e.g. IBM) Who MUST complete a Report on Compliance? It MUST be completed by an approved Qualified Security Assessor (QSA) through the PCI Security Standards Council What is included in PCI Scope Review? 1) Document the cardholder data flow; 2) develop a network diagram that documents all of the firewalls, routers, switches, access points, servers and other network devices and how they are architected; 3) scan your entire network to confirm that cardholder data is not stored anywhere outside of the CDE (Generally, you need to identify all locations and flows and ensure that they are included in scope.) Steps to reduce scope of Cardholder Data Environment ("CDE") 1. Consolidation: Identifying and eliminating redundant data sets and consolidating applications and information storage can reduce scope. 2. Centralization:Encrypted data stored in a highly secure on-site central data vault. The payment card numbers are replaced with tokens in other applications or databases. Since cardholder data is only stored in one central location, PCI DSS Scope is minimized 3. End-To-End Encryption (E2EE) or Point-To-Point Encryption (P2PE):Ensures that card numbers are encrypted from first card swipe at the point-of-sale (POS), and while in transit all the way to the payment processor eliminating most PCI requirements. 4. Outsourcing: Outsourcing all or some of your payment card processing capabilities to a PCI DSS compliant service provider can reduce PCI scope. This is especially relevant to companies conducting eCommerce transactions only. 5. Tokenization:Stores card numbers and other sensitive data such as social security numbers in an off-site highly secure data vault. The payment card numbers are replaced with tokens in all other databases and applications. Not storing cardholder data anywhere greatly simplifies the scope of PCI Requirement. Who makes up the PCI Security Standards Council? 1) Five payment brands (Am Ex, JCB, Visa, MC, Discover), and 2) Payment Organizations (merchants, banks, processors, hardware and software developers, point of sale vendors). Card Processing Authorization- who does the merchant request and receive authorization from to complete the purchase? What is provided to the merchant? The Issuer provides an Authorization Code to the merchant Card Processing Clearing- who shares what? Acquirer and Issuer exchange payment information- usually 24 hr period in U.S. Card Processing Settlement- who does acquirer pay? What does Issuer do? 1) Acquirer pays merchant and 2) Issuer bills cardholder (i.e. cardholder is charged) -Reconciliation takes place, issuer records, posts the transaction which appears on the cardholder's monthly statement What are the 3 steps in Payment Card Processing? 1) Authorization 2) Clearing 3) Settlement Functions associated with Acquirers Authorize, Clear and Settle to merchant Who ultimately approves the purchase? Issuer Which step does the Payment Brand Network provide complete reconciliation to the merchant bank? Clearing How long is PCIP qualification valid? 3 years Which takes precedence...local laws or PCI Standards? Local Laws Payment Brand Network The cc brands (e.g. Am Ex, Discover). Discover and Amex are BOTH the card network and issuing bank- having their own financial institutions issue the cc's to consumers Visa and MasterCard are card networks only and do NOT issue cc's- they have third party issuing banks do it for them. What do Acquirer's do for their merchants? Authorize--Clear--Settle for their merchant Who ultimately approves the purchase? Issuer In which step does the Payment Brand Network provide complete reconciliation to the merchant bank? Clearing (PA-DSS) Payment Application Data Security Standard Third party payment applications that authorize and settle Examples- POS, Shopping Cart Role of Payment Brand Network 1) Develop and Enforce Compliance Programs, 2) Accept validation documentation from approved QSA, PA-QSA, and ASV companies, and 3) endorse the QSA, PA-QSA and ASV company qualification criteria Point to Point Encryption (P2PE) Requirements 1-Secure encryption of payment card data at Point of Interaction (POI) 2-Validated apps at the POI 3 - Secure environment of encryption and decryption devices 4- Manage decryption environment and ALL decrypted account data 5 - Use source encryption technologies and cryptographic key elements-like key generation, distribution, loading and injection, administration and usage May reduce PCI-DSS scope for Merchant -Geared toward provider of point to point solution (e.g. Processor, Acquirer, payment gateway (e.g. PayPal) (PA-DSS) Payment Application DSS Most payment application (PA-DSS) requirements are equivalent of PCI-DSS -Geared toward the Application providers P2PE P2PE- Incorporates requirements from PTS, PCI-DSS, PA-DSS, and PCI-PIN Protects cc data from point of capture to processing (PCI-PTS) PIN- Transaction Security Devices PCI-PTS applies to pin entry devices/ point of interaction devices (POI), Encrypting Pin Pads (EPP), Point of Sale devices (POS), Hardware (or host) security modules (HSMs), Unattended Payment Terminals (UPT)s, and non-PIN entry module -Geared toward Device Manufacturers PCI-PTS - what does the program ensure against? 1 - Terminals cannot be manipulated or hacked, or access to pins/keys 2 - Secure Read and Exchange Module (SREM)- allows terminals to be approved for the secure encryption of cardholder data as part of the P2PE program 3 - PTS extended to allow non-PIN entry modules to be evaluated against the SRED module, allowing secure encryption at POI for non-chip and PIN cards PCI Pin Requirements provides for secure. ... ? 1) PIN management 2) processing and 3) transmission PCI PIN requirements protects PINs entered when and where? Online and offline payment card transactions at ATMs and attended and unattended POS Qualified Integrators and Resellers (QIR) entities that sell, install or service payment applications on behalf of software vendors -software vendors develop the app but QIRs need to make sure app is implemented properly to comply with PCI-DSS -QIR cannot submit certification for PA-DSS validation, only software vendor can file Where does cardholder data flow? Between and through apps, systems and network infrastructure devices -Document data flow before the assessment Name 3 methods to protect PAN per PCI-DSS 3.4 1) Hashing, 2)Encryption, 3)Truncation - to make PAN unreadable when stored- hash the entire PAN completely using strong cryptography May Full track data or Sensitive Authentication Data be stored AFTER authentication? No, even if it is protected. Exception: Issuers or Issue processors may be able to store SAD if there is a business need Location for Track Data Storage Databases, Flat Files, Log Files, Debug Files -Systems that typically store track data- POS Systems, POS servers, Authorization servers How frequent review firewall and router rule sets? Req. 1.1.7 Every six (6) months (at least) What is an untrusted network? An untrusted network is any network that is external to the networks of the entity being reviewed and/or which is out of the entity's ability to control or manage. Req. 1.2 Restrict Traffic Restrict all traffic inbound and outbound from untrusted networks (including wireless) and hosts -Deny all other traffic except protocols necessary for the CDE Req. 1.2.3 Where do firewalls have to be installed? Between all wireless networks and the CDE Requirement 2 Do NOT use vendor-supplied default passwords and other security parameters (ALL default passwords) -inventory system components -Ensure non-console access to network devices, servers and other components is encrypted -Sources of industry accepted system hardening (configuration) standards (Req. 2) 1) Center for Internet Security (CIS) 2) International Organization for Standardization (ISO) 3) SysAdmin Audit Network Security (SANS) Institute 4) National Institute of Standards Technology (NIST) Req. 2.1 When should all vendor defaults be removed or disabled? BEFORE installing a system on the network (includes wireless devices connected to the CHD environment or used to transmit CHD data. (SSH) Secure Shell (Req. 2.2.2-2.2.3) Considered secure Segmentation consists of what? 1) Logical Controls, or 2) physical controls or 3) a combo of both e.g. Firewalls/routers between CHD and corporate network Card holder data (CHD) environment is comprised of what? People, Processes and Technologies that store, transmit or process CHD or SAD Are untrusted networks (e.g. internet) in scope for PCI-DSS No, they are not in scope, but to protect in-scope systems and data from untrusted networks, PCI-DSS requirements must be implemented What is a flat network? A network without adequate segmentation -results in the entire network being in scope for PCI DSS assessment How frequently does an entity have to confirm PCI DSS scope? Annually -must identify locations and flows of CHD -identify all systems connected to, or if compromised could impact the CDE How frequently do segmentation controls have to be tested? At least annually (Req. 11.3.4) Maximum PAN digits that may be displayed First 6 or last 4 digits -POS receipt stricter requirements trumps How to render PAN unreadable? 1) One way hash functions based on strong cryptography 2) Truncation 3) Index Tokens and Securely Stored Pads 4) Strong Cryptography Requirement 3 Protect stored cardholder data -PAN and SAD -after authorization it cannot be stored (even if encrypted-SAD) -issuers exception for business need Requirement 3.3 Protect PAN on display (printed receipts, screens, printouts) -different from Req. 3.4- protect PAN stored on databases or soft files Req. 3.2 Do NOT Store SAD after authorization Don't store SAD (sensitive authentication data) after authorization -render unrecoverable -Exception for Issuers- may store SAD if business need and secure Req. 3.2.2 Track Data Track data located in magnetic stripe back of card -Track equivalent data found on the Chip - but has a unique code Req. 3.4 If stored, PAN must be Unreadable PAN must be unreadable if stored Tech. Solutions to make unreadable: -One way hash functions of the entire PAN -truncation -index tokens w/ secure pads -strong cryptography Req. 3.2.3 Don't store PIN after authorization Req. 3.6.6 Manual clear text cryptographic key management if used, must be managed by: 1) Split Knowledge and 2) Dual Control - One person alone cannot access the authentication materials of another Req. 4 Protect card holder data transmitted across open public network (internet) using encryption -use strong cryptography -verify certificates -use industry best practices (e.g. IEEE 802.11i) Req. 5 Protect all systems against malware and regularly update antivirus software -deploy antivirus software on systems COMMONLY susceptible to malicious software (Malware)- not required on systems not commonly affected by malware Zero Day Term for attacks on previously UNKNOWN vulnerabilities Req. 6.3 Develop internal and external software securely -include web based administrative access -include security when defining requirements for software development -for apps, get rid of development, test accounts, test user ids and passwords from the production code before it goes live- could give away info about app functionality Req. 6 Maintain and develop secure systems and applications -identify security vulnerabilities (at a minimum identify all high risk vulnerabilities) -rank the security vulnerabilities -criteria for ranking vulnerabilities: I) consideration of the CVSS base score, and/or ii) classification by the vendor, and/or iii) type of systems affected -install vendor supplied security patches, critical patches within one month of release, lower risk-2 to 3 months of release-Req. 6.2 Req. 6.3.2 Code Reviews Code reviews 1) be reviewed by someone (knowledgeable on code and security) other than the person that wrote the code; 2) should ensure written with secure coding guidelines; 3)any corrections implemented before release; 4) code review results reviewed by management before release. Req. 6.4 Change control procedures and processes Follow change control procedures and processes for ALL changes to system components -separate development/test environments from production environments and enforce separation with access controls - separate development/test duties from production duties (e.g. developer uses administrator level account to develop environment, and separate account with user level access to production environment) Req. 6.3.4 and 6.4.4 Live PANs-Testing/Development Live PANs CANNOT be used for testing or development -Remove even test data and test accounts before system component goes active (in production) Req. 6.5.1 through 6.5.10 Minimum Controls- Coding Vulnerabilities- Software Development Minimum controls include: 1) Train developers (at least) annually- up to date coding techniques 2) Develop apps based on secure coding guidelines 3) Address common coding vulnerabilities (injection flaws, buffer overflows, insecure cryptographic storage, insecure communications, improper error handling, and all high-risk vulnerabilities identified in Req. 6.1) Req. 6.6 Public Facing Web-Apps 1) Review public facing web-apps with manual or automated tools or methods at least annually and after any changes (different from vulnerability scan in Req. 11.2) OR 2) Install an automated technical solution to detect and prevent web based attacks (e.g. web app firewall)- continuously checking all traffic Req. 7 Restrict access to cardholder data to whom? Business need to know basis Req. 7.2 Use Access Control Systems to Restrict Access Change "allow-all" setting to "deny all" Req. 8 Identify and Authenticate Access to System Components 1) Assign all users a unique ID 2) Revoke access for terminated users 3) Remove/Disable inactive user accounts w/in 90 days 4) Disable 3rd party IDs when not in use, monitor in-use 5) After 6 failed attempts to login, lock out user (min. 30 mins) 6) If idle for more than 15 mins, require user to re-authenticate 7) Passwords need to be 7 characters or more, combo numbers and alphabet 8) Change passwords at least every 90 days 9) New password should not duplicate prior 4 passwords 10) First time use and Reset passwords should be different for each user Req. 8.3 Use Multi-Factor Authentication to Secure CDE Requires a min. 2 of 3 authentication methods (Req. 8.2) before access granted- cannot use one factor twice - applies only to those with admin and non-console access (access to system over network and not direct) to CDE - does NOT apply to app or system accounts performing automated functions Req. 9 Restrict Physical Access to CHD Control physical access to all systems that store, process and transmit CHD -applies to all personnel on-site -visitor- anyone onsite less than 1 day Req. 9.1 Restrict access to what? how? Use controls in facility to prevent access to (badges) and to monitor systems (video cameras) in sensitive areas (e.g. data center, server room) that house CDE -excludes public facing areas (e.g. POS-retail/cashier) -restrict access to publicly accessible network jacks (disable or escort guests) -can be logical, or physical controls or combo -restrict access to wireless access points Req. 10.3 Which details should be included in audit? 1) User ID, 2) Type of Event, 3) Date and Time 4) Indicate Success or Failure 5) Origin of Event 6) identify affected data, system component, resource Req. 10.4 Time Synchronization Use time synchronization technology for all CRITICAL system clocks -need consistent times-helps establish sequence of events -protect time data for forensic investigation -time settings from industry accepted time sources Req. 10.4 Review logs how often? Review security events and logs of systems that store CHD or SAD DAILY -includes logs of ALL critical systems and ALL server and system components performing security functions -review all other system components periodically Req. 10 Track and Monitor Access to what? Track and monitor network resources and CDE -audit trails- retain for 1 year Req. 10.8 Applies to who? Applies to service providers only. -requires formal process to detect and alert critical security fails