Welcome!

SOA & WOA Authors: John Savageau, Plutora Blog, Peter Silva, Elizabeth White, Liz McMillan

Related Topics: Cloud Expo, Java, SOA & WOA, Virtualization, AJAX & REA, Security

Cloud Expo: Article

PCI Compliance for Retailers from the Cloud Perspective

Looking at individual PCI requirements and how they are addressed from the cloud

One of the key drivers to IT security investment is compliance. Several industries are bound by various mandates that require certain transparencies and security features. They are designed to mitigate aspects of risk including maintaining the sacrosanctity of customer information, financial data and other proprietary information.

One such affected vertical is retail. No matter if you’re Wal-Mart or Nana’s Knitted Kittens, if you store customer information; if you process payments using customer’s credit cards, you are required by law to comply with a variety of security standards. Although there are several auditing agencies and mandating bodies, today we will concentrate on the one compliance agency that is typically applicable to every retailer-PCI.

PCI (Payment Card Industry) enforces Data Security Standards that looks to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. Now of course, not all merchants are created equal. Nana obviously doesn’t process the volume or the dollar amount of a national or even a high traffic regional retailer. However, this doesn’t let Nana off the hook. Her online shopping cart still needs to be Payment Application DSS validated (PCI compliant). She still is required to pass security audits of her network…just not as often.

But for the sake of this example, let’s assume you are a retailer who processes more than 20,000 transactions a year and the administrative burden of PCI is a real concern. In fact, it is a business necessity to maintain merchant accounts with VISA, American Express and MasterCard. And it is hugely important to keep the confidence of your customers. Fines for non-compliance aside, a breach of your network could cost millions of dollars. And that doesn’t begin to calculate the cost of customer defection through loss of trust.

Most, if not all, retailers have some sort of PCI monitoring in place. However, they are often cumbersome, expensive and resource heavy. Additionally, too many retail organizations don’t employ a compliance officer, much less a dedicated security person. This doesn’t mean these functions aren’t part of someone’s job description. Typically, they are yet another line item in a plethora of competing priorities and mission critical initiatives. In that security can be considered a cost center, the move to simply do the bare minimum to meet compliance is often an attractive alternative. Until now. Until the cloud. More specifically, a holistic enterprise security initiative deployed and managed from the cloud.

So how does cloud-based security/security-as-a-service meet the requirements of PCI while driving down costs, freeing up personnel resources and providing an easy-yet-comprehensive suite of capabilities and functions?

The easiest way to illustrate the potential is to look at the individual PCI requirements and how they are addressed from the cloud:

1. Protect Data: A cloud-based SIEM offering can accomplish the most important feature of this requirement: the ability to instantly recognize any change, intrusion or activity to your firewall IN REAL TIME. That’s the key. There isn’t the lag of looking at all the logs a week later when the damage has been done, or not being able to tell a suspicious action from a white noise false positive. Whereas many SIEM products can do just this, ones from the cloud provide the additional benefit of 7/24/365 monitoring across the entire enterprise. And, you get a scope of visibility of Fortune 500 class protection for literally pennies on the dollar.

2. No vendor-supplied defaults for system passwords and other security parameters: This process is typically enforced by an identity management protocol. The system includes a password management and synchronization feature. The overarching benefit here is SIEM and identity management are two separate functions from two separate applications. However, applying a holistic solution from the cloud gives you the additional flexibility to recognize new accounts, check device configurations and know when and where configurations have deviated from your standards including the entry of too many incorrect passwords

3. Protect cardholder data: Not only are you required to protect and store data, but ensure encryption of any transmission of that data across public networks. The application of situational awareness is  an effective means of capturing, encrypting and storing (and destroying) certain pieces of information and then providing the auditing regulatory agency with proof that your best practices are in line with internal and external policies. This is the heart of your security and should be treated as such. For instance an immediate alert can be escalated if anyone pings the server in which your data is stored and you can instantly move to block them out or allow access depending on their internally designed permissions.

4. Maintain a Vulnerability Management Program: This includes securing SaaS applications and regularly updating anti-virus software. Again the answer is in the clouds. Single sign on and web authentication can tie together all the permissible applications and provide user provisioning. What makes this especially valuable in the cloud is the speed in which connectors can be created and distributed to only those who require the application. For instance, shipping doesn’t need to see the HR applications and marketing doesn’t require access to inventory programs.

5. Implement strong access control methods: As PCI specifically says access to personal and sensitive data is on a “Business need to know,” cloud-based identity managementprovides control and creates specific provisioning on who can see what and have access to which data. It gives you the visibility and the audit reports to show who accessed what, when and from what device.  Again, the cloud version of this solution ties it together with all the other security solutions giving it true enterprise context.

6. Collect logs and applications impacted by PCI: Log management is one of the most time intensive aspects of security. Not only do the logs need to be collected, but they also need to be studied for traffic patterns, suspicious anomalies, improper or failed access and create an audit trail for card processing systems. An automated system can only do so much and most organizations don’t spend a great deal of man hours scouring millions of lines of machine code. That’s where log management from the cloud is a huge time and asset saver. Not only does it have the automation to review and categorize this code, but security-as-a-service provides the additional human expertise to piece together the situational awareness from multiple silos to give a true report of the security of the enterprise. It’s like having an expert analyst on staff without the associated costs. And of course, those logs can be archived in accordance with PCI requirements for 1 year.

PCI is just one agency with its strict set of requirements. Now imagine the cost and personnel savings  when having to comply with multiple agencies. A VP of Ops from a nationally recognized retail company told me he deals with six agencies on a regular basis. Without a holistic and centralized security approach, he would waste endless hours through redundant reporting. With the application of security centralization, 75 hours per month becomes 10. And more importantly, the degree of accuracy of the reporting is significantly better.

In the above six line items, I described four or five different solutions. That in itself can be a heavy investment...unless you look at layering in the cloud. If you are inclined, there is a growing best practice platform of unified security whereby a company can achieve all these goals by leveraging all the solutions into one single source managed from the cloud (cost-effective, enterprise-powered and compliance -ready). But, that is enough ammunition for several other blogs...so keep posted.

So if compliance is one of your banes of business, maybe it’s time you took a deeper look at the cloud.

Kevin Nikkhoo
Always PCI compliant! (HIPAA compliant too. And CIP, and SOX, GLBA and many, many others!)
www.CloudAccess.com

More Stories By Kevin Nikkhoo

With more than 32 years of experience in information technology, and an extensive and successful entrepreneurial background, Kevin Nikkhoo is the CEO of the dynamic security-as-a-service startup Cloud Access. CloudAccess is at the forefront of the latest evolution of IT asset protection--the cloud.

Kevin holds a Bachelor of Science in Computer Engineering from McGill University, Master of Computer Engineering at California State University, Los Angeles, and an MBA from the University of Southern California with emphasis in entrepreneurial studies.

@ThingsExpo Stories
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and expertise to guard against those threats. But will that be enough? In the foreseeable future attacks w...
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...