Data Breach Costs Are Rising

Data security is a global challenge, and cardholder data is especially valuable and vulnerable to hackers. Even with security advancements, criminals continue to develop sophisticated ways of attacking point-of-sale devices, back-office systems, and network data centers. These attacks have evolved from simple methods like pulling card receipts from the trash to using advanced malware and data-sniffing technologies that have compromised millions of cardholder records worldwide. Are you doing enough to protect your business?

Increasing Risks

Security breaches are on the rise, with payment card fraud nearing $14 billion in 2013. In the U.S. alone, fraud costs grew by 29%, reaching $7.1 billion that year. Retail, food and beverage, and hospitality industries are especially vulnerable, accounting for 64% of these compromises. Restaurants and hotels are prime targets due to how card transaction data is stored for adjustments (such as tips or incidental charges), making it easier for criminals to access.

The financial consequences of data breaches can be devastating. One major retailer’s breach could cost up to $680 million, and studies show that 43% of consumers avoid shopping at a breached retailer. The average cost of a breach has increased to $201 per compromised account, which means a breach affecting a mid-sized business with 20,000 accounts could cost over $4 million.

PCI Compliance Guidelines

Fortunately, the payment industry has made strides in responding to security threats through the PCI Security Standards Council and the introduction of the PCI Data Security Standard (DSS) in 2004. Any business that processes, stores, or transmits cardholder data must comply with PCI DSS, which is designed to protect customer account data. The standards cover maintaining a secure network, implementing internal controls, and conducting regular testing. As new threats emerge, the PCI standards are updated to ensure businesses stay protected.

Potential Vulnerabilities

There are three key points of vulnerability during a payment transaction lifecycle:

1. Card in Use: While being used for card-present and card-not-present transactions, post-authorization, and adjustments.
2. Payment in Process: As data moves between your system and a payment gateway or processor.
3. Data at Rest: When stored in batches awaiting settlement or within your system.

A Multi-Layered Approach to Security

With increasing risks, adopting solutions like EMV, encryption, and tokenization can remove cardholder data from unprotected environments and reduce PCI compliance complexity. By removing sensitive data from your system, these solutions can significantly reduce the costs and time involved in compliance audits.

EMV “Smart Card” Technology

EMV is a global standard for chip-enabled payment cards, reducing fraud at physical points of sale. Unlike magnetic-stripe cards that are easily skimmed, EMV technology assigns a unique value to each transaction, making it nearly impossible to copy cardholder data. EMV cards and terminals are becoming the standard across the U.S., providing consumers with increased control and security. This is ideal for restaurants, retail, and many other industries.

Tokenization

Tokenization replaces sensitive cardholder data with a unique token ID, stored securely in a centralized data center. This makes the original data inaccessible to hackers. Tokenization is particularly effective for card-not-present transactions like mobile and eCommerce payments, and for businesses that temporarily store data, such as hotels or those processing recurring payments.

Encryption

Encryption protects card data from the moment it’s swiped or entered, rendering it unreadable as it travels across systems and networks. It ensures sensitive data is secure from the point of entry until it reaches a secure data center for processing. This is especially important for businesses that handle card-present transactions.

Thoro Payments: Protecting Your Data and Bottom Line

Securing cardholder data and maintaining PCI compliance requires the right combination of tailored security solutions. Thoro Payments provides a proven portfolio of security measures, helping businesses safeguard cardholder data, streamline PCI compliance, and ensure operational continuity by:

• Removing card data from the payment stream.
• Utilizing EMV, encryption, and tokenization to protect data throughout the transaction lifecycle.
• Supporting integration with leading POS systems for seamless processing.
• Reducing the costs and complexities of PCI compliance audits.

With over 20 years of experience in global payment processing, Thoro Payments and our partner network are committed to protecting your business and your customers. Let our team of security experts guide you in making smart investments to secure your data.