The latest update to the Payment Card Industry Data Security Standard (PCI DSS), version 4.0, introduces a critical requirement: by March 2025, businesses handling payment card data must implement DMARC (Domain-based Message Authentication, Reporting, and Conformance).
This change aims to protect against email fraud and domain spoofing, which have become significant threats in the digital world. In this article, we’ll explore who is affected by this requirement, what it means for businesses, and how they can ensure compliance.
Who Does This Affect?
Any business that processes, stores, or transmits payment card information is subject to the PCI DSS requirements, and the DMARC mandate is no exception. This includes retailers, financial institutions, payment processors, and service providers within the payment card industry. Essentially, any organisation that handles sensitive payment data or interacts with payment systems must adhere to this new rule.
Does This Affect UK Companies?
Yes, UK businesses are also affected by the DMARC mandate under PCI DSS 4.0. While PCI DSS compliance is not enforced directly by UK law, it is required for any UK business that processes, stores, or transmits cardholder data. This includes merchants and service providers who deal with payment card information. PCI DSS compliance is enforced through contractual agreements with banks or card issuers, and failure to meet these standards can result in significant fines and increased transaction costs.
In addition to the financial penalties, non-compliant businesses may face reputational damage and may lose their ability to process card payments. As UK data protection regulations, such as the Data Protection Act (DPA) and the GDPR, also apply to payment card data, implementing DMARC for enhanced email security aligns with these broader data protection obligations. Therefore, UK companies must prioritise DMARC implementation to protect customer data, comply with PCI DSS 4.0, and avoid penalties.
What Does DMARC Implementation Mean?
DMARC is an email authentication protocol designed to prevent domain spoofing and phishing attacks by ensuring that emails appearing to come from a company’s domain are actually from authorised sources. Under PCI DSS version 4.0, businesses are now required to adopt DMARC policies as part of their broader email security strategy. This means organisations must authenticate all emails sent from their domain and implement a system to monitor and report on any unauthorised use of their email addresses.
Ensuring Compliance
To meet this requirement, businesses must first assess their current email security measures. This includes reviewing their existing SPF (Sender Policy Framework) and DKIM (DomainKeys Identified Mail) records, as these are foundational components of DMARC implementation.
Once the assessment is complete, organisations should implement DMARC policies, starting with a “none” policy for monitoring. To ensure 100% compliance with PCI DSS, businesses must progress through the “quarantine” policy and ultimately to the “reject” policy, which enforces the strictest level of email authentication and fully protects against spoofing and phishing attempts.
Monitoring and reporting are also key elements of compliance. Once DMARC is in place, businesses need to track reports to identify and address authentication failures. Regularly reviewing these reports will allow companies to refine their policies and enhance their protection against email-based threats.
Finally, thorough documentation of the entire DMARC implementation process will be crucial for any PCI DSS audits. Companies must ensure that their email security practices are well-documented and demonstrate compliance with the updated standards.
What Happens If Companies Don’t Implement DMARC?
Failure to implement DMARC could have significant consequences for businesses within the payment card industry. The most immediate risk is a higher susceptibility to email-based cyberattacks, including phishing and domain spoofing. Without DMARC, attackers can easily impersonate a company’s email address to deceive customers or employees, potentially resulting in data breaches or financial fraud.
Moreover, companies that fail to comply with the PCI DSS 4.0 DMARC requirement could face severe penalties during PCI audits. Non-compliance can lead to hefty fines, reputational damage, and even the loss of payment processing privileges, making it harder to operate within the payment card industry. In the worst-case scenario, continued non-compliance could cause businesses to lose the trust of their customers, resulting in a loss of business and credibility.
Conclusion
PCI DSS 4.0’s mandatory DMARC requirement is a critical step toward securing the payment card industry against email fraud. By March 2025, businesses need to have fully implemented DMARC and be ready to comply with the new standards. Taking the time now to assess current practices, implement DMARC, and monitor email security will ensure that businesses are prepared for the upcoming changes.
Don’t wait until the deadline approaches. Start implementing DMARC today to protect your business from email-based threats and stay compliant with PCI DSS 4.0.
Advantex offers this service as part of our comprehensive cybersecurity solutions and can assist your company in ensuring a smooth transition and robust protection. Consult with our cybersecurity experts to safeguard your organisation and stay ahead of the curve.
