Thursday, May 26, 2011
A report released by Vesta Corp. May 24, 2011, indicates more than 25 percent of mobile network operators are not compliant with the Payment Card Industry Data Security Standard (PCI DSS). The study additionally discovered more than 35 percent of survey participants did not know they could face financial penalties for noncompliance.
Vesta surveyed 16 mobile network operators in the United States and Europe to determine if they were PCI compliant. In addition to determining more than a quarter of the respondents were noncompliant, the study found the average cost for a company to reach PCI DSS compliance is approximately $700,000. The cost of maintaining PCI compliance is estimated to be more than $1.4 million. The researchers further concluded mobile network operators believe failure to comply with the PCI DSS will result in customer dissatisfaction and loss of confidence in the mobile network operations company.
Vesta researchers said they believe it is important for mobile network operators to be PCI compliant because of the complex nature of their business where electronic payments are made using the web, intelligent voice response, short message service, mobile phones and iPads.
Vesta Vice President of Marketing Joshua Rush said, "The survey shows that there is clearly room for improvement by the mobile operator community in addressing PCI DSS compliance, and it is critical that operators not yet compliant take appropriate measures to ensure the security of their customers' sensitive cardholder data.
"However, compliance should not be viewed as a mandatory demand by the card associations but as a competitive sales and marketing differentiator at a time where data security is of paramount concern to subscribers."
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