As our former blog in this series defines, PCI DSS compliance is essential for any business handling cardholder data. Violating these rules can lead to severe penalties, with fines ranging from thousands to millions of dollars, depending on the severity of the breach. Multi-site franchisors’ franchisees and smaller businesses are particularly vulnerable to fines since their technology is not centralized and managed at the individual store level. This is where PCI DSS fines can be particularly crippling. Let’s dive in and better understand what warrants a violation and how much it could cost.
What Counts as a PCI DSS violation?
A PCI DSS violation occurs when a business fails to meet the standards set by the PCI Security Council. These violations often stem from negligence or outdated security practices, even if unintentional. Storing credit card data insecurely, transmitting cardholder data without encryption, or not regularly updating security protocols are all common PCI DSS violations. As this post warns, even if a business isn’t aware it’s violating PCI standards, it can still face serious consequences.
Be proactive and learn if you are at risk of a violation by chatting with one of our PCI DSS experts at no charge here.
The Most Common Types of PCI Violations
Most PCI violations occur due to lapses in data protection. These are often not malicious but result from outdated security controls, insufficient monitoring, or poor compliance management. Many businesses may believe they’re protected, but without ongoing PCI DSS
Common violations include:
The Cost of a PCI DSS Violation
The penalties for PCI DSS violations can vary widely depending on the severity of the breach and the number of customers affected.
Corporations fined due to violations of PCI DSS regulations:
- British Airways was fined $229 million in 2017 for a breach that affected 500,000 customers.
- Target paid an $18.5 million settlement after a 2013 breach exposed over 41 million customers’ payment information.
- TJX Companies were fined $40.9 million after exposing 94 million customer accounts between 2005 and 2006.
For smaller businesses, fines are significant as well:
- They range from $5,000 to $100,000 per month!
- The fines can be even greater if the company remains non-compliant
- Businesses also face reputational damage, loss of customer trust, and legal fees, which compound the financial burden.
Ways to Avoid PCI Fines
The most effective way to avoid PCI DSS violations and their costly penalties is by investing in PCI DSS compliance monitoring. WT Solutions provides ongoing monitoring services to ensure that your business stays compliant, with real-time status updates and system checks that address vulnerabilities before they become major issues.
How WT Solutions Can Help
Don’t risk non-compliance—invest in PCI DSS monitoring today to safeguard your business from financial penalties and protect your reputation.