SOC 2 vs PCI Compliance: An In-Depth Comparison

SOC 2 vs PCI DSS: Which Standard Do You Need?

SOC 2 is a voluntary standard created by the American Institute of Certified Public Accountants (AICPA). It evaluates and reports on controls over infrastructure, data, systems, and people based on the five Trust Services Criteria.

The PCI Security Standards Council developed and maintains the Payment Card Industry Data Security Standard (PCI DSS) to protect payment data throughout its lifecycle. Companies must follow the guidelines to protect credit card and other payment card data from fraud and theft.

Interestingly, both SOC 2 and PCI DSS focus on protecting sensitive data but serve different purposes and industries. 

However, businesses can achieve SOC 2 and PCI DSS compliance to protect sensitive information. This dual compliance demonstrates a strong commitment to security standards and builds greater trust with clients and partners.

I.S. Partners’ expert offers a valuable strategy to achieving both framework compliance,

Overview of Differences Between SOC 2 and PCI DSS

SOC 2  vs. PCI DSS: Key Differences And Contrasts

SOC 2 and PCI DSS are two frameworks that most companies need. However, their implementation processes vary. The key difference between both is the type of data being protected. Both frameworks require that information security policies be implemented and shared throughout the company. 

To understand their differences better, we have outlined the contrasts based on various parameters.

1. Scope
2. The Type of Data Protected
3. Application of the Standard
4. Requirements
5. Process of Compliance
6. Audit Authority

Scope

SOC 2

The scope of SOC 2 covers services, systems, policies, processes, and people, evaluating their effectiveness against the five trust principles: security, availability, processing integrity, confidentiality, and privacy. Among the criteria, Security is mandatory. Other criteria to be evaluated are driven by contractual obligations or objectives based on the identified SOC 2 scope.

It ensures that a service organization maintains rigorous internal controls over these aspects to protect and manage sensitive information effectively.

PCI DSS

The scope of PCI DSS covers any organization that processes, stores, or transmits credit card information. It includes technical and operational requirements designed to protect cardholder data and ensure its security, aiming to prevent data breaches and fraud.

The Type of Data Protected

SOC 2

SOC 2 protects various types of data, primarily focusing on sensitive information related to customers and clients. This includes:

• Personally identifiable information (PII) such as names, addresses, phone numbers, email addresses, and social security numbers.
• Credit card numbers, bank account details, and other financial data.
• Protected health information (PHI) for organizations subject to HIPAA regulations.
• Proprietary business information, trade secrets, and other intellectual property.

PCI-protected data can be a part of the list of information protected by SOC 2 controls. Its inclusion in the SOC 2 scope will depend on the objectives and operations of an organization.

PCI DSS

PCI DSS specifically protects cardholder data, focusing on information related to payment card transactions. This includes:

1. Primary Account Number (PAN) number assigned to a payment card, often referred to as the card number.
2. The name of the individual to whom the card is issued.
3. The date after which the card is no longer valid.
4. The three-digit or four-digit number printed on the card is used to validate the card during transactions.
5. Sensitive Authentication Data such as the full magnetic stripe data, card security codes (CVV, CVC), and PINs or PIN blocks.

Application of the Standard

SOC 2

SOC 2 is designed for service organizations that handle customer data, particularly those in the technology and cloud computing sectors. It is intended for companies that need to demonstrate their commitment to data security and privacy to their clients, such as the following:

• Cloud Service Providers (e.g., AWS, Microsoft Azure, Google Cloud)
• SaaS Companies (e.g., Salesforce, Slack, Dropbox)
• Data Hosting and Data Centers (e.g., Equinix, Digital Realty)
• Managed IT Service Providers
• Financial Institutions (e.g., banks, investment firms)
• Healthcare Providers (e.g., hospitals, clinics, health tech companies)
• Legal Firms
• Educational Institutions (e.g., universities, online education platforms)
• Technology Companies (e.g., software developers, IT support companies)
• Third-party vendors and Contractors handling customer data

PCI DSS

PCI DSS is mandatory for businesses accepting card payments. These measures protect customers’ sensitive information by identifying and addressing gaps in data security. Examples include:

• Retailers (e.g., Walmart, Target)
• E-commerce Companies (e.g., Amazon, eBay)
• Payment Processors (e.g., PayPal, Stripe)
• Financial Institutions (e.g., banks, credit unions)
• Hospitality Industry (e.g., hotels, restaurants)
• Healthcare Providers (e.g., hospitals and clinics handling patient payments)
• Transportation Companies (e.g., airlines, ride-sharing services)
• Telecommunication Companies (e.g., mobile carriers, internet service providers)
• Online Subscription Services (e.g., Netflix, Spotify)
• Charities and Non-Profits accepting online donations

Requirements

SOC 2

SOC 2 requirements focus on evaluating an organization’s controls over the security, availability, processing integrity, confidentiality, and privacy of data:

1. Focal Trust Services Criteria
   • Security. Protects against unauthorized access to systems and data, ensuring they are safe from attacks.
   • Availability. Ensures systems are operational and accessible as agreed upon, minimizing downtime.
   • Processing Integrity. Guarantees that data processing is complete, accurate, timely, and authorized.
   • Confidentiality. Protects sensitive information from unauthorized access.
   • Privacy. Manages personal information to ensure it is collected, used, retained, disclosed, and disposed of appropriately.
2. Disaster recovery and business continuity. Ensure your systems are securely backed up and have plans to minimize downtime. 
3. Capacity management. Set baselines to avoid overloading your systems. 
4. Risk assessment. Conduct a thorough risk assessment to understand the risks your organization faces. 
5. Continuous monitoring. Regularly test your controls, fix any gaps, and keep collecting evidence of compliance.
6. Written policies and procedures. Create detailed security policies and procedures covering all aspects of SOC 2 compliance.
7. Readiness assessment. Perform a readiness assessment to see how prepared you are for an audit. 

The only required criteria for a SOC 2 examination are security criteria, also known as common criteria. It’s called common criteria because many evaluation standards apply across all five Trust Services Criteria.

Additional criteria can be included in the examination at the discretion of management or if they are deemed essential to the services being offered.

PCI DSS

The requirements of PCI DSS are grouped into 6 main objectives, each with specific requirements under them:

Process of Compliance

SOC 2

SOC 2 compliance involves a set of rigorous activities aiming to establish the appropriate security controls and build a secure internal control environment. 

Below are the most critical steps to SOC 2 compliance.

1. Choose the Right SOC Report. Decide between a SOC 2 Type 1 or Type 2 report based on your client’s needs. Type 1 examines control design at a specific point, while Type 2 evaluates operational effectiveness over time.
2. Define Audited Areas. Identify systems, processes, and controls aligned with business goals and regulations for the audit.
3. Assess Internal Risks. Quantify potential revenue risks and determine applicable Trust Service Criteria. Set priorities with your audit partner to focus efforts effectively.
4. Form Your Team: Build a team that includes roles like Executive Sponsor, Project Manager, IT and Security Personnel, Legal Personnel, and External Consultants.
5. Gather Documentation. Collect necessary documents such as asset inventories, HR procedures, policies, and security controls. Address any gaps early for a smooth audit.
6. Prepare with Readiness Checks. Conduct a readiness assessment to identify and rectify control deficiencies beforehand, ensuring effective controls.
7. Identify and Address Gaps. Perform a gap analysis to confirm essential controls are in place, addressing issues like policy gaps or inconsistent checks.
8. Implement Changes. Enter a remediation phase lasting up to nine months to implement required adjustments. Document security procedures and adapt processes as needed.
9. Organize Documentation. Compile all necessary audit documentation centrally for auditors to easily access and resolve discrepancies swiftly.

For streamlined SOC 2 compliance, I.S. Partners offers specialized audit services. As a licensed CPA firm, we ensure your journey to SOC 2 certification demonstrates your dedication to data security, system integrity, and privacy effortlessly.

PCI DSS

Achieving PCI DSS compliance is a critical step for any business that handles payment card transactions. 

The compliance process involves several key steps, from assembling your compliance team to choosing a qualified QSA. Let’s take a glance at the steps involved typically:

• Assemble Your Team. Start with a Compliance Manager and knowledgeable members committed to PCI DSS compliance.
• Create a Clear Program. Define roles and responsibilities clearly to ensure accountability.
• Network Diagram. Maintain an accurate diagram to understand data flows and identify compliance gaps.
• Document Everything. Organize and store all necessary PCI documentation for easy access during audits.
• Choose a Qualified QSA. Select a reputable auditing firm to guide you through PCI DSS compliance.
• Reduce Scope. Segment networks and employ tokenization to minimize the systems handling cardholder data.
• Pre-Audit Assessment. Conduct readiness assessments and vulnerability scans to prepare for audits.
• Implement Security Practices. Document and enforce cybersecurity measures across your organization.
• Continuous Monitoring. Establish ongoing monitoring to detect and respond to security threats promptly.

To achieve this, enlist a Qualified Security Assessor like I.S. Partners. Our experienced auditors specialize in PCI compliance, offering expertise gained over two decades in the industry. We streamline risk assessment and gap analysis to ensure your compliance journey is smooth and effective.

Dive Deeper

How To Prepare For A PCI Audit

Read Article

Audit Authority

SOC 2

SOC 2 audits are conducted by independent auditing firms or CPAs (Certified Public Accountants) specifically licensed to perform SOC 2 readiness assessments. These firms or independent SOC 2 auditors are service auditors who assess whether an organization complies with the Trust Services Criteria defined by the AICPA. 

PCI DSS

PCI DSS audits are conducted by Qualified Security Assessors (QSAs) certified by the Payment Card Industry Security Standards Council (PCI SSC). These assessors are independent and have the authority to assess and validate an organization’s compliance with PCI DSS 4.0 requirements. They specialize in evaluating and verifying an organization’s compliance with PCI DSS requirements.

I.S. Partners is a certified QSA that can help you achieve PCI DSS certification. Contact I.S. Partners so our QSAs can offer you additional PCI DSS audit preparation tips and tell you all the ways we are ready to help.

Similarities Between the PCI & SOC 2 Audit Processes

While SOC 2 and PCI DSS serve different purposes and apply to different types of data, the audit processes for both frameworks share several commonalities. Both involve rigorous evaluations of an organization’s security controls and require ongoing monitoring and remediation.

These similarities can be used to create an efficient path to compliance for both systems. I.S. Partners’ Senior Consultant, Jena Andrews, highlighted how the two frameworks overlap and complement each other,

Below, we highlight some of these similarities and help you streamline the two frameworks’ overlaps.

Gap Analysis and Risk Assessment

In a gap analysis process, the auditor meets with your team to discuss your current information security processes, such as risk management and endpoint security, and identify any gaps that need fixing. You’ll receive a list of issues to address before the audit.

Testing and Validation

Both audit processes include thorough testing and validation of controls. This can involve penetration testing, vulnerability scanning, and other methods to ensure that security measures are functioning as intended.

Remediation

After the readiness phase, your auditor will give you a list of gaps and recommendations. Follow these remediation steps to fix the weak areas and ensure you are ready for the assessment.

Reporting

At the conclusion of both audits, the auditors will provide detailed reports outlining their findings on your system’s effectiveness. For PCI DSS, this includes a Report on Compliance (ROC) or Attestation of Compliance (AOC). On the other hand, the SOC 2 report details compliance with the Trust Services Criteria and identifies any deficiencies.

Map Your Way to SOC 2 and PCI DSS Compliance with the Help of I.S. Partners

Multiple audits, such as SOC 2 and PCI DSS, can be complex. Understanding each audit’s requirements is essential to streamlining and avoiding redundant efforts.

I.S. Partners offers a combined SOC 1, SOC 2, and PCI audit, making the process more efficient and cost-effective for your organization. Our services include:

• Thorough readiness assessment and security testing
• Professional remediation guidance
• Independent compliance validation
• Simplified reporting process

Want to know how this works? Schedule a demo with  I.S. Partners. 

FAQs

About The Author

Anthony Jones

Anthony has over 30 years of experience and has worked across a spectrum of industries, including telecom, technology, insurance, financial services, manufacturing, and service companies.

He holds an impressive array of certifications, including Certified Information Systems Auditor (CISA), Certified Information Systems Manager (CISM), Qualified Security Assessor (QSA), and Certified ISO/IEC 27001 Lead Auditor.

Anthony has extensive knowledge in IT consulting and the expert ability to accurately determine needs, understand risk tolerances, offer alternatives to current situations, develop action plans, and cultivate longstanding client relationships.

Anthony’s area of expertise consists of Cyber Security and Cyber Risk Management, Payment Card Industry (PCI) Security, Privacy Management (PrivacyShield and GDPR), SOC for Service Organizations (SOC 1 and 2), and Sarbanes Oxley Compliance across various industries.

Before joining IS Partners, LLC, Anthony spent 10 years at PriceWaterhouseCoopers (PWC) as a Senior Manager. He provided strategic guidance to Fortune 100 financial services, manufacturing, insurance, and utility companies. Notably, he led the eastern region for the SOC for Service Organizations (SOC 1 and SOC 2) practice. Anthony holds a Bachelor’s of Science degree in Financial Management from Saint Joseph’s University.

He took his education further, earning an MBA with a Concentration in Information Systems, graduating Summa Cum Laude from SJU Haub School of Business.