What must be done if cardholder data is compromised?

When cardholder data is compromised, it is imperative to report the data breach to the relevant authorities. This step is crucial for a few reasons. First, reporting to authorities helps ensure compliance with legal and regulatory requirements. Many jurisdictions have specific laws that mandate the reporting of data breaches to authorities to protect consumers and maintain trust in financial systems.

Moreover, notifying authorities enables them to investigate the breach, assess the scope of the compromise, and potentially prevent further incidents from affecting other organizations or individuals. It also allows for coordination with law enforcement, which can be vital in pursuing those responsible for the breach and mitigating damages.

While monitoring transactions for unusual activity, notifying credit bureaus, and changing passwords are all important components of a broader incident response strategy, the primary step that ensures proper handling and resolution of the situation is reporting the breach to the relevant authorities. This establishes a formal recognition of the incident, which is essential for accountability and remediation efforts.