Abstract
S&H Aquariums, a burgeoning online retailer accepting credit card payments, cannot underestimate the significance of PCI DSS compliance. Disregarding these crucial regulations is tantamount to tarnishing the company’s reputation and financial standing. S&H Aquariums must prioritize immediate and future considerations for compliance with PCI DSS requirements. An integrated internal control system harnessing multiple frameworks and standards presents an effective strategy toward this goal, enabling efficient preparation for various types of audits concerning PCI DSS compliance. For S&H Aquariums to prioritize its compliance responsibilities and safeguard sensitive data, the company must implement suitable measures that comply with relevant laws and regulations.
Keywords: S&H Aquariums, online retailer, compliance responsibilities, credit card payments, breach, reputation, business standing, information systems security expert, PCI DSS
Addressing a New Business’s Compliance Responsibilities
Introduction
S&H Aquariums is a new online retailer concerned about its compliance responsibilities as a business that accepts credit card payments on its website. The management team worries about a potential breach’s negative impact on the company’s reputation and business standing. As an information systems security expert, the company has hired me to ensure that it is prepared to accept credit card payments while minimizing risks to sensitive data and complying with applicable laws, regulations, and industry standards.
PCI DSS Overview
PCI DSS is a set of requirements that prescribes operational and technical controls to protect cardholder data. The standard comprises six principles, twelve primary requirements, and several sub-requirements. The six principles include building and maintaining a secure network and systems, protecting cardholder data, maintaining a vulnerability management program, implementing strong access control measures, regularly monitoring and testing networks, and maintaining an information security policy.
Rationale
The company needs to address the PCI DSS requirements because the consequences of not doing so can be severe. If a breach occurs and sensitive data is exposed, the company’s reputation and business standing can be negatively impacted and may also face legal and financial consequences.
Immediate Considerations for PCI DSS Compliance
Factors that will influence S&H Aquariums’ immediate plans for PCI DSS compliance include payment brands, transaction volumes, merchant levels, and types of reporting required. As a new business, S&H Aquariums will likely fall under Merchant Level 4, which requires an annual self-assessment questionnaire and quarterly network scans. As the volume of credit card transactions grows, the company must consider upgrading to higher merchant levels and undergoing more extensive audits.
Future Considerations for PCI DSS Compliance
In the future, if credit card volume increases past 1,000,000 transactions, S&H Aquariums will need to comply with more stringent requirements, such as submitting an annual report on compliance and undergoing an on-site assessment. If the company decides to accept American Express or Discover, it will need to comply with its respective data security standards, in addition to PCI DSS.
Plan for Developing an Integrated Internal Control System
We will use multiple frameworks and standards to develop an integrated internal control system, including COSO, COBIT, SOC, ISO, and NIST. These frameworks and standards guide various aspects of internal control, such as risk management, governance, and compliance. Using multiple frameworks and standards ensures that the control system is comprehensive and covers all necessary areas. Additionally, an integrated system will allow the company to efficiently prepare for multiple types of audits, not just those related to PCI DSS compliance.
Conclusion
S&H Aquariums must address its compliance responsibilities as a business accepting credit card payments. Compliance with PCI DSS is necessary to minimize risks to sensitive data and comply with applicable laws, regulations, and industry standards. The company will need to consider immediate and future considerations for PCI DSS compliance and develop an integrated internal control system using multiple frameworks and standards.
References
About Us. PCI Security Standards Council. (2022, September 26). Retrieved April 22, 2023, from https://www.pcisecuritystandards.org/pci_security/
Guidance on internal control. (n.d.). Retrieved April 22, 2023, from https://www.coso.org/sitepages/internal-control.aspx?web=1
Statement on standards for 18 attestation engagements – AICPA. (n.d.). Retrieved April 22, 2023, from https://us.aicpa.org/content/dam/aicpa/research/standards/auditattest/downloadabledocuments/ssae-no-18.pdf
write