What Is Sensitive Authentication Data?

Definition of Sensitive Authentication Data (SAD)

Sensitive Authentication Data (SAD) refers to specific cardholder data elements that are considered highly sensitive and require stringent protection under the Payment Card Industry Data Security Standard (PCI DSS).

SAD includes authentication information that, if compromised, could potentially be used to bypass security controls and gain unauthorized access to a cardholder's account or make fraudulent transactions. Under PCI DSS, this includes:

• Full track data (magnetic stripe or chip equivalent)
• Card Verification Value (CVV, CVV2, CVC) — the 3- or 4-digit security code
• PINs and PIN blocks

Examples of Sensitive Authentication Data

1. Full Magnetic Stripe Data: This includes the complete contents of the magnetic stripe on the back of a payment card, which typically contains the cardholder's account number, name, expiration date, and other sensitive information. Storing or retaining this data is highly discouraged and restricted under PCI DSS.

2. Card Verification Value (CVV/CVV2/CVC/CVC2): These are three- or four-digit security codes printed on payment cards. They are used as an additional authentication factor during card-not-present transactions. PCI DSS prohibits the storage of CVV codes after authorization and mandates their deletion or obfuscation.

3. PINs and PIN Blocks: Personal Identification Numbers (PINs) used for cardholder verification at point-of-sale devices or ATMs, as well as encrypted or unencrypted PIN blocks, fall under SAD. Storing or transmitting PINs without appropriate encryption is strictly prohibited.

4. Online Card Authentication Data: This category includes any data associated with the process of authenticating a payment card for online transactions, such as dynamic authentication codes or one-time passwords. Storing or transmitting this data in an unencrypted or insecure manner is not permitted.

SAD and PCI DSS Compliance

Protecting Sensitive Authentication Data (SAD) is crucial for maintaining the security and integrity of cardholder information. PCI DSS specifies various requirements to safeguard SAD, including encryption, restricted storage, and secure transmission protocols.

Organizations that handle payment card data must implement robust security controls to prevent unauthorized access, limit data retention, and ensure compliance with PCI DSS requirements related to SAD. By protecting SAD effectively, organizations can reduce the risk of data breaches, unauthorized access, and fraudulent activities.

Related Terms and Regulations

Major Regulations Governing SAD

1. PCI DSS (Payment Card Industry Data Security Standard)

• Applies to: Any organization that stores, processes, or transmits cardholder data.
• Key Rule: SAD must not be stored after authorization. If stored before, it must be encrypted and strictly protected.

2. PSD2 (Payment Services Directive 2) 

• Introduced SCA: Requires two or more authentication factors for electronic payments.
• Goal: Reduce fraud and increase consumer trust.

3. HIPAA (Health Insurance Portability and Accountability Act)

• While HIPAA doesn't directly govern payment card data, it mandates strong protections for patient information, which often intersects with payment data in healthcare payment environments.

4. GLBA (Gramm-Leach-Bliley Act)

• Requires financial institutions to explain data-sharing practices and protect sensitive data.