What measures are being taken to protect card data in developing countries?

[Student]

For educational purposes, I will provide a more detailed and structured overview of measures taken to protect payment card data in developing countries. This response includes context, specific examples, technological and regulatory aspects, as well as challenges and recommendations, to ensure a thorough understanding of the topic. I will also consider the specifics of developing countries, where the level of digitalization, infrastructure, and cyberthreats may differ significantly from developed markets.

Payment card data protection measures in developing countries​

Protecting payment card data (such as card number, expiration date, CVV/CVC code, and PIN) is critically important amid the global growth of digital payments. In developing countries, where economic growth is accompanied by an increase in bank card and mobile payment system users, data protection faces unique challenges: limited resources, weak digital infrastructure, high levels of cybercrime, and insufficient user awareness. Key security measures are based on international standards such as PCI DSS (Payment Card Industry Data Security Standard), but their implementation is tailored to local conditions. Let's examine these key aspects in detail.

1. The international PCI DSS standard and its role​

PCI DSS is a global security standard developed by the PCI Security Standards Council, which includes Visa, Mastercard, American Express, and other payment systems. It is mandatory for all organizations that process card data (banks, acquirers, merchants, and processing centers). PCI DSS consists of 12 requirements, divided into six categories:

1. Building and maintaining a secure network:
   • Installing and configuring firewalls to protect networks.
   • Changing default passwords and security settings.
2. Cardholder data protection:
   • Encryption of stored data (for example, using AES-256 algorithms).
   • Data masking (displaying only part of the card number, for example, 1234-XXXX-XXXX-5678).
   • Prohibition of storing sensitive data such as CVV or PIN after authorization.
3. Vulnerability Management Program:
   • Regularly update your antivirus software.
   • Testing and fixing vulnerabilities in payment systems.
4. Access control:
   • Restricting access to data based on the "essential minimum" principle.
   • Unique identifiers for employees working with data.
5. Network monitoring and testing:
   • Logging of all operations with card data.
   • Regular penetration testing and vulnerability scanning.
6. Information Security Policy:
   • Development and compliance with corporate security policy.
   • Training employees and informing clients.

Application in developing countries:

• South Africa: South Africa leads Africa in PCI DSS implementation, with 90% of banks certified (as of 2023). The country's Protection of Personal Information Act (POPIA) strengthens data protection requirements, including for payments.
• India: The Reserve Bank of India (RBI) requires banks and payment systems (such as UPI) to comply with PCI DSS. In 2024, the RBI introduced additional tokenization requirements for all online transactions.
• Russia and the Eurasian Economic Union: The National Payment Card System (NSPK, Mir system) has integrated PCI DSS into its standards. The Bank of Russia (Regulation No. 382-P) requires banks to implement encryption, monitoring, and regular audits.
• Latin America: In Brazil and Mexico, PCI DSS is implemented to protect Pix and CoDi systems, with a focus on biometric authentication.

2. Technological protection measures​

Technology plays a key role in protecting card data, especially with the growth of mobile and online payments in developing countries. Key approaches include:

1. Encryption and tokenization:
   • Encryption: Card data is encrypted during transmission (TLS/SSL) and at rest (AES-256). For example, in Kenya, the M-Pesa mobile platform uses end-to-end encryption for transactions.
   • Tokenization: Replacing card data with a unique token that is useless to attackers. In India, tokenization is mandatory for all online payments starting in 2022 (RBI directive). Visa and Mastercard are promoting tokenization through their services (Visa Token Service, Mastercard Digital Enablement Service).
2. EMV and contactless technologies:
   • EMV chip cards (Europay, Mastercard, Visa) have replaced magnetic stripes, reducing the risk of skimming. In Nigeria and Indonesia, the transition to EMV is 80–90% complete (estimated for 2024).
   • Contactless payments (NFC) with dynamic cryptograms (e.g. Apple Pay, Google Pay) are being widely implemented in South Africa, Brazil and Russia.
3. Biometric authentication:
   • Using fingerprints, facial recognition, or voice recognition to confirm transactions. In Mexico, the CoDi system uses biometrics to secure mobile payments, and in India, Aadhaar integration supports biometric verification.
4. Artificial Intelligence and Monitoring:
   • AI-powered systems (such as Visa Advanced Authorization) analyze transactions in real time to detect fraud. In Brazil, Pix uses AI to detect anomalies, such as unusual amounts or geographic inconsistencies.
   • Logging all transactions allows for incident tracking. In Russia, the Faster Payment System (FPS) requires mandatory transaction monitoring.
5. Two-factor authentication (2FA):
   • A mandatory requirement for online transactions in most developing countries. For example, in India, OTP (one-time password) is used via SMS or apps, while in South Africa, push notifications from banking apps are used.

3. Regulatory and organizational measures​

Developing countries are actively adapting international standards to local realities, creating their own regulatory frameworks:

1. Local laws and regulations:
   • India: The RBI requires all payment systems to comply with PCI DSS and additional standards, such as tokenization and 2FA. Violations carry fines of up to 5 million rupees (approximately $60,000).
   • South Africa: POPIA mandates protection of personal and payment data, with a focus on encryption and staff training.
   • Russia: The Bank of Russia (CBRF), through Regulation No. 382-P and standard GOST R 57580.1, establishes requirements for data protection, including mandatory audits and certification.
   • Brazil: The Central Bank of Brazil (BCB) has integrated PCI DSS into the Pix system regulation, with a focus on protection against phishing and social engineering.
2. International cooperation:
   • Visa and Mastercard provide grants and training programs to banks in Africa (such as Kenya and Nigeria) to implement PCI DSS.
   • The International Monetary Fund (IMF) and the World Bank are supporting cybersecurity projects, including card data protection, in countries with low levels of digitalization (such as Bangladesh and Ethiopia).
   • The BRICS countries (Brazil, Russia, India, China, South Africa) are developing an exchange of experience in protecting national payment systems (for example, UPI in India, Mir in Russia).
3. Training and awareness:
   • Financial literacy campaigns help reduce the risk of phishing. In Russia, the Central Bank of the Russian Federation runs programs to identify fraudulent calls and websites.
   • In Africa (Kenya, Uganda), banks are partnering with mobile operators to inform users about secure payments via SMS.

4. Challenges in developing countries​

Despite progress, card data protection in developing countries faces a number of challenges:

1. Limited infrastructure:
   • In rural areas of Africa and Asia, access to the internet and modern POS terminals is limited, increasing the use of outdated magnetic stripe systems.
   • The low level of digitalization in some countries (for example, Ethiopia or Bolivia) makes it difficult to implement complex solutions such as tokenization.
2. High level of cybercrime:
   • Phishing and social engineering are common in countries with low financial literacy. For example, in Nigeria, 60% of cyberattacks are phishing-related (2023 data).
   • Skimming remains a problem in countries where the transition to EMV has not been completed (such as parts of Indonesia).
3. Lack of resources:
   • Small and medium-sized businesses (merchants) often lack the means to achieve PCI DSS certification, creating vulnerabilities in the payment chain.
   • The limited number of cybersecurity professionals in Africa and Latin America is slowing the adoption of advanced technologies.
4. Regulatory fragmentation:
   • In some countries (for example, in Central Asia), there is no unified regulatory framework, which complicates coordination between banks and regulators.

5. Prospects and Innovations​

Developing countries are actively working to improve card data protection by innovating and adapting to challenges:

1. Central bank digital currencies (CBDCs):
   • CBDCs with a focus on privacy-by-design are being tested in the Bahamas (Sand Dollar), Nigeria (eNaira), and Cuba. This minimizes the storage of sensitive data while maintaining AML/CFT (anti-money laundering and counter-terrorism financing) functionality.
   • Russia is testing a digital ruble using blockchain technology to secure transactions.
2. AI and Machine Learning:
   • In India and South Africa, banks are using AI to analyze transactions in real time, detecting fraud with up to 95% accuracy (Visa, 2024).
   • In Brazil, the Pix system has integrated AI to detect suspicious transactions, reducing fraud by 30% since 2021.
3. Biometrics and blockchain:
   • Biometric authentication is becoming the standard for mobile payments in Latin America and Asia.
   • Blockchain is being tested in India and Russia to protect data in national payment systems, ensuring the transparency and immutability of transactions.
4. International support:
   • Visa and Mastercard programs (such as the Cybersecurity Hub in Africa) provide grants and training to improve compliance.
   • IMF and the World Bank are funding projects to modernize payment infrastructure in low-income countries.

6. Recommendations for consumers​

For users in developing countries, it is important to follow basic safety precautions to minimize risks:

1. Website security check:
   • Make sure the site uses HTTPS (lock in the address bar).
   • Avoid entering card details on untrusted platforms.
2. Using 2FA:
   • Activate two-factor authentication in banking apps.
   • Do not share OTPs (one-time passwords) with third parties.
3. Transaction control:
   • Enable SMS or push notifications for transactions.
   • Check your bank statements regularly.
4. Protecting physical cards:
   • Do not allow third parties to photograph or scan the card.
   • Use cards with EMV chips or contactless payments.
5. Phishing Awareness:
   • Do not answer calls or emails asking for CVV, PIN or OTP.
   • Install antivirus software on devices used for payments.

7. Case Studies​

• Kenya (M-Pesa): The M-Pesa mobile payment system, which serves 50 million users, uses end-to-end encryption and two-factor authentication. Biometrics will be introduced in 2023 to protect against fraud in rural areas.
• India (UPI): The Unified Payments Interface (UPI) processes billions of transactions monthly. Tokenization and mandatory two-factor authentication have reduced fraud by 25% since 2021 (RBI data).
• Russia ("Mir"): The national "Mir" system uses tokenization and AI-based monitoring. The system's export to the EAEU and Latin America (Cuba, Venezuela) is accompanied by PCI DSS implementation.
• South Africa: Banks such as Standard Bank have integrated PCI DSS with local POPIA standards, reducing data breaches by 40% between 2020 and 2024.

8. Conclusion​

In developing countries, payment card data protection is based on international standards such as PCI DSS, but is adapted to local conditions through local regulations, technological innovation, and educational programs. Key measures include encryption, tokenization, biometrics, transaction monitoring, and user training. Despite challenges such as limited infrastructure and high levels of cybercrime, progress is noticeable: South Africa, India, and Russia demonstrate high levels of compliance, and international support is accelerating the implementation of standards in less developed regions.

For in-depth study, I recommend:

• Review the PCI DSS standard (available on the PCI Security Standards Council website).
• Study local regulations (e.g. RBI in India, POPIA in South Africa, Regulation No. 382-P in Russia).
• Follow Visa, Mastercard, and IMF reports on payment system cybersecurity.

If you have specific questions or need information about measures in a particular country, please let me know and I'll provide a more targeted answer!