Why is PCI DSS Required for Fintech App?

Do you know why most businesses are choosing to digitize? No?

Let me tell you, the reason behind this is the advancement of the security parameters. The digital era has made businesses go online. One of the biggest reasons here is the online secure payment system that makes people avoid the cash flow.

Most companies are developing Fintech applications for their business. As per the set standards of PCI DSS compliance, they must perform adequate security tests and implement security measures to ensure a safe business environment.

In current times, hackers are constantly keeping an eye on payment schemes and Fintech companies to gain sensitive and confidential data. After this, the security of payment applications and card data is now the biggest and still growing challenge for Payment schemes and Fintech companies.

At the same time, the payment scheme and any Fintech app development company are working towards securing and maintaining their environment, servings and offerings.

But still, they are yet not prepared for the evolving security challenges. So, PCI DSS is required for any Fintech application.

PCI DSS Overview

The Payment Card Industry Data Security Standard (PCI DSS) compliance protects the payment card environment and provides the baseline for achieving other related industry standards like HIPAA and GDPR.

PCI DSS compliance also helps Fintech businesses or p2p payment applications tackle common threats like DDoS attacks, Cross-Site Scripting, Malware Attacks, Cloud-based Security Risk, Compliance failure, and Third-Party involvement.

It also highlights in-depth requirements that help payment schemes and Fintech companies meet other industry standards. If you are going to build a p2p payment app, you must keep PCI DSS requirements in mind. Because following these security requirements will help you in building more loyal connections with your customers. Also, p2p apps are becoming part of daily routine, therefore maintaining security is essential.

When businesses implement the measures as per the PCI DSS standard, it benefits as a shield payment scheme for Fintech companies against misuse, data theft, and unauthorized access to sensitive data.

Therefore, to maintain the security standards, everything that uses online transactions must meet the PCI requirements.

Now, let us begin with the requirements.

1. Protect Stored Cardholder’s Data

If you are having a FinTech app protecting the cardholder’s data-id as important as you secure your card details! Firstly, not store the card verification code CVV (three-digit or four-digit number printed on the front or back of a payment card) used to verify card-not-present transactions. But if so, store that specific data in known locations with limited access.

You can collect only limited data to solve a specific problem and encrypt the sensitive data with proper authentication while the data has been stored. Securely delete such data after the need or immediately after use. This is how you can maintain the essential requirement of PCI DSS by protecting the individual’s data.

2. Do Not Use Default Passwords and Other Security Parameters

When the user uses the default passwords or the other security parameters, it can be dangerous sometimes.

Usually, operating systems, servers, firewalls, and other elements of your security configuration arrive with pre-set, default usernames and passwords. The user should change the password as quickly as possible to maintain security. Because default set passwords are easy to guess and stored on many devices so are likely to be posted on the internet.

Make sure that you make it compulsory for the user to change the default password if they want to go ahead with using the application. To use the app again, they have to change the password. So, by making this compulsory you will match the requirements of PCI DSS.

3. Encryption of Important Data

Encryption of the user’s important data is essential and one of the key requirements of the PCI standards. It can ensure data protection when transferred from one source to another or even stored. The process of encryption ensures not only authorized data access but leaves no scope for compromise of data or incidents of a data breach.

After doing encryption of important data, you can consider this one as an assured way of ensuring the safety of valuable information.

4. Use Encryption Tools to make Data Unreadable

As it is impossible to make hackers stop collecting the user’s data, you can make the data encrypted. Only you and the authorized person can see the decoded information whenever it is needed.

So that the hacker can not understand the data, and this is how you can save the data from leaking and maintain confidentiality. PCI DSS compliance urges the companies for keeping the customer’s data safe along with the surety that they will not get leaked.

5. Protection against Malware

Protection against malware in PCI DSS requires antivirus software to get installed on all the systems. Such as operating systems and Anti-virus software usually offer an extra layer of protection to every design within a network.

The company should meet the complete PCI DSS requirements for anti-virus protection in their OS to protect from malware.

6. Develop and Maintain a Secure System

Maintaining a secure system to date is a fundamental task, but it can be possible by keeping these points in mind.

  • First of all, do not allow insecure cryptographic storage to store on that particular device.
  • Protection from XSS(Cross-site scripting).
  • Address common vulnerabilities in web and software applications.
  • Ensure that the security policy and the operational procedure for developing and maintaining secure systems and applications are documented, used, and known to all affected parties.

Maintaining a secure system will make sure that you are on the correct line to get a more secure growth of your application.

7. Maintain a Policy That Addresses Information Security for all

The requirement of maintaining the policy that addresses the information security for all personnel includes the below-mentioned points:

  • Risk assessment process
  • Usage policies
  • Lists of devices and personnel with access to them
  • Defined authentication methods
  • Acceptable network locations
  • Remote-access rules
  • Executive management responsibilities
  • Security awareness program
  • Personnel training requirements
  • Vendor compliance management
  • Incident response program
  • Alerts from security monitoring systems
  • Documentation of the review process

These security policies are important to be followed when you are developing any fintech app which matches PCI DSS requirements.

8. Regularly Test Security Systems and Processes

This requirement relates to the regular testing of all system components that make up the cardholder data environment to ensure that the security environment remains secure.

Regularly test security systems and processes to ensure the system is still on the security track or not. You introduce any risk whenever you change your approach or update anything, including altering the firewalls or router configurations.

Antivirus software is designed to prevent attacks likely to lead the system to vulnerabilities. This requirement provides a detailed overview of penetration tests, including timelines and schedules. Since new software and malware attacks can introduce unknown vulnerabilities, some regular tests and scans are essential to implementing suitable security patches and also upgrades. By regularly testing security systems and processes, you are on the correct path to follow PCI DSS requirements.

Conclusion

Here, in this blog, I discussed PCI DSS’s requirements which any Fintech app development company should follow.

The PCI DSS compliance requirements can be complex sometimes at several stages, but they don’t need to be complicated for any organization.

You can also keep track of the latest released compliance procedures through their website. You must follow the PCI DSS guidelines if your business manages and stores the customers’ data.

Are you thinking to build a p2p payment app or Fintech application? Or are you a fintech app development company? And is your goal to get PCI DSS compliance? If so, your application must be reaching all the PCI DSS requirements.

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