Penetration Testing for Compliance and Regulatory Standards

The transition from paper documents to digital storage has greatly improved organizations' efficiency. However, it has also led to an increase in cyber attacks. To safeguard this important data, many sectors now follow cybersecurity regulations.

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For example, HIPAA has been updated for the healthcare industry, and NERC applies to utilities and energy.

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Additionally, higher education institutions must comply with the HEOA. As new regulations arise, such as SOX, GDPR, and CMMC, cybersecurity teams face the challenge of ensuring compliance, often without the benefit of additional staff to manage the increased workload.

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Many of these regulations either suggest or mandate penetration testing to assess an organization’s security and compliance. For instance, Requirement 11.4 of the Payment Card Industry Data Security Standard (PCI DSS) specifies that organizations must establish a thorough penetration testing program.

What is Penetration Testing Compliance?

Pentesting compliance is the process of carrying out penetration testing to meet specific regulatory or industry standards. This process maintains the security and integrity of information systems, networks, and applications.

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Through organized testing, pentesting compliance helps uncover potential security risks and offers essential information to improve overall cybersecurity.

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Multiple compliance frameworks and standards regulate requirements for pentesting, such as PCI DSS, HIPAA, and GDPR.

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Additionally, organizations may need to comply with ISO standards, such as ISO 27001.

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Why is Penetration Testing Necessary for Compliance?

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Companies should explore modern security measures like penetration testing instead of relying solely on legacy security tools such as firewalls and antivirus software. Recently, the U.S. Congress introduced the Proactive Cyber Initiative Act of 2022 (H.R.8403), which mandates penetration testing for government systems considered moderate to high risk.

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This law also requires federal agencies to submit reports on their proactive cybersecurity strategies.

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Penetration testing helps find ways an attacker might exploit an organization’s systems to reach sensitive information. As attack methods evolve, regular mandatory tests allow organizations to spot and fix security weaknesses before malicious individuals can use them. Pentesters also benefit auditors, as they confirm whether other required security measures are in place and functioning effectively.

How Penetration Testing Helps Meet Compliance Standards?

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Penetration Testing for PCI Compliance

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The PCI DSS consists of security guidelines for businesses handling credit card information. Confident information must be secured. In simple terms, any organization that accepts credit cards must comply with these standards.

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Requirement 11 of PCI DSS 3.2.1 specifically requires regular penetration testing. This requirement applies to merchants who need to complete a formal audit or fill out a Self-Assessment Questionnaire (SAQ) C or SAQ D and to all Service Providers.

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Organizations subject to PCI DSS must carry out both external and internal penetration testing at least once a year or whenever their systems undergo major changes.

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Penetration Testing for HIPAA Compliance

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HIPAA mandates that healthcare providers protect electronically stored Protected Health Information (PHI) through appropriate administrative, physical, and technical safeguards to ensure its confidentiality and security.

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While HIPAA does not specifically require penetration testing or vulnerability scans, it does mandate a risk analysis, meaning that covered entities must evaluate their security measures.

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The HIPAA Evaluation Standard § 164.308(a)(8) addresses explicitly medical information protection, privacy, and electronic sharing. While not required, penetration testing can assess security through “white hat” hacking when reasonable and necessary.

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Healthcare providers must regularly test their data security; failing to do so can result in fines ranging from $100 to $50,000 for each compromised record.

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Penetration Testing for FINRA Compliance

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FINRA establishes rules on cybersecurity for financial institutions such as securities firms that are required to adhere to the Securities Exchange Act of 1933 (17 CFR §240.17a-4(f)). FINRA also conducts thorough assessments of the information security measures in place at these financial firms.

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Although not explicitly mandated, penetration testing is often expected during cybersecurity audits by FINRA. FINRA Rule 4370 and SEC guidelines require firms to conduct cybersecurity assessments, which usually include penetration testing.

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Penetration Testing for Data Privacy Compliance

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Data privacy laws outline how to collect, store, and share individuals' data with third parties. These laws protect people from misusing their personal information and prevent sharing their data without informed consent.

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Some of the most well-known data privacy laws include the GDPR in the EU and UK and Brazil's General Data Protection Law (Lei Geral de Proteção de Dados Pessoais or LGPD).

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• The GDPR mandates that companies must regularly test, evaluate, and review the efficiency of their technical and organizational safeguards for data protection, as stated in Article 32 of the GDPR.
• Likewise, the LGPD mandates that companies ensure the security of personal data (Article 47 LGPD).

Penetration testing helps organizations that must comply with these privacy laws identify potential vulnerabilities that could lead to data breaches and address these issues.

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Penetration Testing for ISO 27001 Compliance

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The ISO 27001 standard outlines a clear approach for organizations to protect their assets, which includes various IT security controls. Within the risk management process of ISO 27001, penetration testing can be employed to verify that these security measures are functioning as intended.

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The standard's A.12.6.1 states that “Information regarding technical vulnerabilities should be gathered promptly and addressed to manage the associated risks.”

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Penetration tests offer the necessary visibility required by this standard.

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Penetration Testing for SOC 2 Compliance

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SOC 2 certification requires an independent audit to confirm that a company adheres to strict security and privacy standards. The SOC 2 framework includes two specific requirements related to penetration testing and vulnerability management that auditors examine:

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CC4.1 – Management employs ongoing evaluations, including penetration testing, independent certifications like ISO certifications, and internal audits.

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CC7.1 – The organization applies detection and monitoring processes to identify (1) configuration changes that could create new vulnerabilities and (2) risks related to newly identified vulnerabilities.

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Although auditors may interpret these guidelines differently, penetration tests are typically considered one of the most effective and economical ways to fulfill these requirements.

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Penetration Testing for NIS Directive and Regulations

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The NIS Directive, also known as the Network and Information Systems Directive, is a European Union regulation that enhances the security and strength of vital infrastructure and services. In the United Kingdom, it is referred to as the NIS Regulations.

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The NIS Directive applies to OES, which include sectors like energy, transport, utilities, and healthcare, as well as Relevant Digital Service Providers (RDSP), such as search engines, online marketplaces, and cloud computing services.

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While the NIS Directive and NIS Regulations do not specifically require penetration testing, conducting these tests helps organizations effectively manage security risks and defend against cyber-attacks. Penetration testing supports the overall goals of the NIS framework.

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Penetration Testing for NY Shield Act

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New York enacted the SHIELD Act in March 2020. This law establishes stricter data security requirements for companies that gather information about New York residents.

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The NY SHIELD Act mandates that businesses create, implement, and uphold "reasonable safeguards" to ensure the security, confidentiality, and integrity of data belonging to New York residents. These safeguards should include administrative, technical, and physical measures.

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Conducting penetration testing is one effective method to show that appropriate actions have been taken to protect this data.

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Penetration Testing for SWIFT CSF

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The SWIFT CSP is a framework that directs the security of the SWIFT interbank communications system and the financial institutions that rely on it for transmitting financial transaction data.

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The SWIFT CSP includes a variety of mandatory and advisory controls to assist organizations:

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• Secure their systems
• Limit access to sensitive data
• Detect and respond to potential threats

Principle 2 of the CSP emphasizes minimizing the attack surface and managing vulnerabilities. Additionally, SWIFT Control 7.3 requires financial institutions to perform penetration testing to identify security weaknesses. This testing, which should cover applications, hosts, and networks, must be conducted annually and after major system changes.

Choosing the Best Third-party Provider for Penetration Testing

Automated tools can be used for initial testing, while third-party services can be used for more complex assessments. For example, regulations like PCI DSS often require testing after significant organizational environment changes.

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This may involve advanced testing, such as simulating multiple attack scenarios, to verify that the changes did not introduce new security vulnerabilities.

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When selecting a third-party service, it is essential to choose a provider that can offer specific testing to meet your organization's particular needs and objectives. Some firms may only offer basic testing, which could be handled in-house with the right tools.

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A good third-party service should have expert testers, like ioSENTRIX, who can design and execute tests that provide valuable insights and help the organization achieve its security goals.

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Our Pentest as a Service (PtaaS) platform offers in-depth analysis and customization, all while ensuring efficiency and scalability.

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Working with ioSENTRIX enables you to reduce risks, enhance DevSecOps practices, and effortlessly expand your security initiatives. This approach allows you to take proactive steps, fix vulnerabilities, and innovate securely.

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FAQs

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Is a penetration test needed to meet a particular compliance standard?

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If your business processes credit card information, compliance with PCI DSS is essential, not optional. Requirement 11.3 of the PCI DSS standard requires penetration testing to ensure security.

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What are the risks of not penetration testing?

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If a network has weaknesses, hackers can exploit them to access sensitive information without permission. This results in serious financial losses and harms a company's reputation.

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What are penetration testing standards?

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The PTES Framework outlines the best practices for organizing a penetration test. This standard guides testers on the different phases of a penetration test, such as initial communication, information gathering, and threat modeling.

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Why do companies need penetration testing?

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Penetration tests are essential because they show how well a company can defend itself against hackers. They can reveal weaknesses that security experts might have missed during development or highlight vulnerabilities that are not easy to see from within the organization.

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What is the most essential part of a penetration test?

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Any penetration test report must clearly define the scope and objectives. The scope outlines which assets are involved in the test and sets the rules for how it will be conducted.

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