Expert tips for PCI-DSS password compliance

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Credit card thieves cost businesses billions each year. In response, major credit card companies created the Payment Card Industry Data Security Standard (PCI-DSS) to address this threat, requiring specific security measures for any organization that handles credit card data.

The stakes are high: organizations that fail to comply face fines ranging from $5,000 to $100,000 per month, higher transaction fees, or even loss of their ability to process credit cards.

Password security is a key component of keeping sensitive financial data secure. Here’s what your organization needs to know about PCI-DSS and passwords — if your business is impacted, updates in the new standard, and how you can prepare for compliance before the 2025 deadline.

 

Understanding PCI-DSS scope and requirements

PCI-DSS applies to any organization that stores, processes, or transmits credit card data. If your organization handles credit card data in any capacity — whether you’re processing transactions or developing payment software — PCI-DSS likely applies to your business.

The 4.0.1 update introduces more flexibility in how organizations meet compliance requirements. Under the new ‘customized approach,’ businesses can design security controls that fit their specific environment — provided they demonstrate these controls fully satisfy PCI-DSS requirements and receive approval from a qualified security assessor. And time is of the essence; organizations must achieve full compliance by March 31, 2025.

Organizations affected by PCI-DSS

  • Direct handlers: Retail stores, restaurants, and e-commerce sites that process customer payments
  • Financial partners: Banks, credit unions, and payment processors that facilitate transactions
  • Technology providers: Companies developing payment software or providing payment-related services
  • Support services: Third-party vendors and service providers with access to cardholder data

 

Password requirements under PCI-DSS 4.0.1

The latest update prioritizes password security, with stricter requirements designed to prevent unauthorized access. New requirements include:

  • Password length: General users must have a minimum password length of at least 12 characters, while service account users’ passwords must be at least 15 characters
  • Character complexity: All passwords must have complex character requirements, including uppercase, lowercase, numbers, and special characters
  • Security validation: Organizations must ensure that commonly used or compromised passwords aren’t used, which can include checking new and changed passwords against known lists of breached credentials
  • Authentication requirements: Organizations must enable multi-factor authentication (MFA) for all administrative access
  • Access management: Organizations must regularly validate access privileges — at least once every six months
  • Data transmission: Organizations must ensure secure transmission of passwords using strong encryption protocols
  • Storage requirements: Organizations must implement secure password storage using robust hashing algorithms

 

Building a compliant password policy

To enforce the new password security updates, it’s important that your password policies reflect the updated PCI-DSS requirements. Follow these steps to ensure your policies are PCI-compliant:

  1. Configure complexity: Establish and enforce password rules that meet or exceed the minimum requirements for length, special characters, and case sensitivity
  2. Prevent reuse: Set up systems to track and block the previous four passwords for each user
  3. Secure accounts: Implement automatic account lockouts that trigger after five failed login attempts
  4. Encrypt storage: Deploy strong encryption methods for all stored password data
  5. Train users: Develop and deliver comprehensive training programs that explain password requirements and security best practices
  6. Monitor activities: Maintain detailed audit logs of all password-related activities and access attempts
  7. Document procedures: Create clear written policies that outline all password requirements, procedures, and security controls
  8. Manage expiration: Deploy length-based password expiration systems with automated user notifications

In addition, running regular password audits can help you identify potential compliance gaps before they become problems. A free solution like Specops Password Auditor can scan your Active Directory environment to help you:

  • Identify weak points: Detect accounts using compromised or easily-guessable passwords
  • Validate policies: Uncover password policies that don’t meet compliance requirements
  • Track expirations: Find accounts with expired passwords requiring immediate attention
  • Clean up access: Discover and manage inactive accounts that pose security risks
  • Strengthen authentication: Locate systems and accounts lacking required MFA protection

Download your free auditing tool here.

 

Achieve compliance with third-party tools

Manually enforcing password policies can be a challenging process. For easier and more accurate compliance, consider implementing technology solutions that streamline and automate important functions. Pay special attention to these must-have features as you’re evaluating your options. Choosing a platform that includes these features will help you achieve compliance faster, reduce security vulnerabilities, and minimize administrative overhead:

  • Real-time checks against databases of compromised passwords
  • Complexity requirements enforcement
  • Automated password expiration management
  • Custom dictionary creation for organization-specific terms
  • Detailed compliance reporting
  • Active Directory environment integration
  • Continuous password security monitoring

 

A tool such as Specops Password Policy can significantly aid organizations in achieving PCI-DSS compliance by automating and enforcing robust password management practices. It ensures that passwords meet the required complexity standards, such as minimum length, character variety, and the inclusion of uppercase and lowercase letters, numbers, and special characters.

Beyond these core requirements, Specops Password Policy has a Breached Password Protection feature that continuously checks your Active Directory against a growing database of over 4 billion unique compromised passwords. It also provides detailed reporting and auditing capabilities, which are essential for demonstrating compliance during PCI DSS assessments. Get in touch and try Specops Password Policy for free.