Payment service providers (PSPs) have been issued new guidelines to adhere to in the event of a security incident in a new consultation paper delivered by the European Banking Authority (EBA) working with the European Central Bank.
According to the consultation paper, “these guidelines set out the criteria, thresholds and methodology to be used by payment service providers in order to determine whether an operational or security incident should be considered major and, therefore, be notified to the competent authority in the home member state.”
These guidelines call for reporting of a breach to authorities within two hours from the moment the breach is detected, compared to the General Data Protection Regulation (GDPR) requirement of notification within 72 hours of breach detection.
Companies will be required to use a standardized template intended to help manage information throughout the security investigation. While initial reports are not expected to be detail oriented, they do expect a basic overview of what occurred and the potential impact the breach could have.
Critics are claiming the two-hour window to report the breach is a bit harsh, but only a high-level notification is required immediately.
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