6 Ways to Guard Against Credit Card Data Breaches

If your business accepts card payments, then you should know what your responsibilities are to your customers. It's important to guard against credit card theft, data breaches and cybersecurity threats that can negatively impact your business's reputation and bottom line.

All ecommerce merchants are responsible for safeguarding the data they collect. No matter how the personal information is obtained — via a point of sale system, surveys, apps or digital wallets — you are in charge of keeping customer information safe from fraudsters.

Card payments (online and point of sale) are the form of fraud most frequently reported to the Federal Trade Commission. Credit card fraud results in multi-billion dollar losses in profit for businesses accepting card payments online. You do not want to be the next unfortunate statistic. So, what can you do to protect your customer's data?

#1 – Know how credit card information gets stolen 

Personal information like a full name, credit card number and the three-digit card verification value (CVV) can be stolen out of your handbag, hacked from a bank database, skimmed from card readers or snagged from phishing texts, emails or calls.

#2 – Use an encrypted network

The use of a secure network doesn't guarantee against data breaches or cyberattacks, but it does mean that any information sent to or from that safe server is natively encrypted, such as passcodes.

#3 – Require a CVV or CSC at time of purchase

Major credit card schemes such as Visa, Mastercard, Discover and American Express all use codes — card validation value or card security code — to establish the owner's identity at time of purchase.

#4 – Use of a strong screening method

Cybercriminals know their best chance to steal valuable information is the easy way — an "emergency" text message to a vulnerable person that asks for them to verify their login and passcode to their account. To mitigate this risk, use of the strong customer authentication (SCA) method is advised. The SCA identifies real customers using two of three sources: something they are (an email address), something only they have (CVV) and something they know (passcode).

#5 – Follow PCI DSS

The Payment Card Industry Data Security Standard (PCI DSS) was established in 2004 to address data breaches. By following the PCI DSS, you put in place the systems, controls and mitigations to reassure customers of safe online transactions with your 

Access the PCI Security Standards Council resources to small online merchants for free.

#6 – Regularly check your site security

Site security is of the uppermost importance for preventing cyberattacks and data breaches. If you aren't conducting the appropriate checks on your activity, SSL certificate and more, it might be time to research website security tools.

The Law Offices of Donald W. Hudspeth P.C. can help small businesses prevent and address data breaches. 

Categorised in: Starting a Business in Arizona

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