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Safeguarding data; Given the number of recent high looking beyond PCI compliance.(tech solutions)

Publication: Grocery Headquarters
Publication Date: 01-JUN-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
AS SOME OF THE RECENT HIGH-PROFILE DATA BREACHES HAVE PROVEN, the overwhelming majority of incidents occur at brick and mortar retailers--not on the Internet. According to a March 2008 white paper published by Trustwave, a Chicago-based provider of data security systems, 70% of breaches occur...

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...at physical stores. The research also found that larger companies are often targets. They may represent greater transaction volume, but Trustwave found smaller merchants are actually targeted more often.

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One of the most recent breaches in the grocery industry was in March, when it was discovered that credit card data was compromised at Hannaford Bros. According to reports, the Hannaford compromise is among the first large-scale intrusion involving the interception of card data while it's in transit between systems and the first to happen to a PCI DSS-compliant retailer. PCI DSS stands for Payment Card Industry Data Security Standard. It was developed by the major credit card companies as a guideline to help retailers prevent credit card fraud and improve data security measures.

Hannaford has responded by announcing millions of dollars in security upgrades, including encryption and monitoring software on store servers. IBM, General Dynamics, Cisco Systems and Microsoft. At a press conference following the breach, Hannaford's CEO Ron Hodge, said the retailer will use "military-and industrial-strength security going forward."

The incident left some in the industry wondering how it happened and created doubt as to whether the initiative put forward by the PCI Security Standards Council created to thwart such occurrences, was the total solution most assumed it was created to be. Others were concerned that Hannford news would further slow the rate of PCI DSS certification, a requirement for any company accepting card transactions for payment. Their reports show that currently the majority of level one, two and three companies--large and medium-size merchants that represent the bulk of credit card transactions-have completed the certification process or are about to.

"All of the steps that are in the compliance standard are things retailers should have already been doing...

NOTE: All illustrations and photos have been removed from this article.



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