Unencrypted Payment Card Data Found on 63% of Merchant Networks

  • Mar 25, 2011
Nearly two-thirds of merchant computer systems store unencrypted payment card data in violation of the Payment Card Industry Data Security Standard (PCI DSS), according to scans of more than 475 merchant networks of all sizes by SecurityMetrics. This readable card data leaves merchants liable to fines and other penalties in case of card data compromise.

The presence of prohibited card information in 63 percent of merchant systems was discovered in beta testing of SecurityMetrics' just-released PANscan  product, a free patent-pending software tool that searches for unencrypted track 1, track 2 and primary account number (PAN) data on merchant machines to support PCI DSS compliance efforts.

The test findings indicate a large number of merchants use payment application software that does not conform to the Payment Application Data Security Standard (PA-DSS), fail to configure their payment applications properly, neglect to erase old data when new payment applications are purchased, and/or fail to train their employees in proper handling and storage of card data.

"Improper storage of payment card information puts cardholder data at risk. Our testing suggests that the problem remains surprisingly widespread even with increasing industry emphasis on the need for compliance with PCI DSS regulations," said SecurityMetrics CEO Brad Caldwell. "Proactively looking for unprotected data with a tool like PANscan can help close this security gap and potentially thwart future theft incidents."
 

Featured

  • Security Today Announces 2025 CyberSecured Award Winners

    Security Today is pleased to announce the 2025 CyberSecured Awards winners. Sixteen companies are being recognized this year for their network products and other cybersecurity initiatives that secure our world today. Read Now

  • Empowering and Securing a Mobile Workforce

    What happens when technology lets you work anywhere – but exposes you to security threats everywhere? This is the reality of modern work. No longer tethered to desks, work happens everywhere – in the office, from home, on the road, and in countless locations in between. Read Now

  • TSA Introduces New $45 Fee Option for Travelers Without REAL ID Starting February 1

    The Transportation Security Administration (TSA) announced today that it will refer all passengers who do not present an acceptable form of ID and still want to fly an option to pay a $45 fee to use a modernized alternative identity verification system, TSA Confirm.ID, to establish identity at security checkpoints beginning on February 1, 2026. Read Now

  • The Evolution of IP Camera Intelligence

    As the 30th anniversary of the IP camera approaches in 2026, it is worth reflecting on how far we have come. The first network camera, launched in 1996, delivered one frame every 17 seconds—not impressive by today’s standards, but groundbreaking at the time. It did something that no analog system could: transmit video over a standard IP network. Read Now

  • From Surveillance to Intelligence

    Years ago, it would have been significantly more expensive to run an analytic like that — requiring a custom-built solution with burdensome infrastructure demands — but modern edge devices have made it accessible to everyone. It also saves time, which is a critical factor if a missing child is involved. Video compression technology has played a critical role as well. Over the years, significant advancements have been made in video coding standards — including H.263, MPEG formats, and H.264—alongside compression optimization technologies developed by IP video manufacturers to improve efficiency without sacrificing quality. The open-source AV1 codec developed by the Alliance for Open Media—a consortium including Google, Netflix, Microsoft, Amazon and others — is already the preferred decoder for cloud-based applications, and is quickly becoming the standard for video compression of all types. Read Now

Most   Popular

New Products

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.