Security

What you need to know about TR-31

As we move into 2025, understanding the nuances of TR-31 is essential for financial institutions and ATM operators to ensure compliance and maintain robust security

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December 3, 2024 by James Wyler — President, Trusted Security Solutions

Staying ahead of the latest regulatory updates is crucial in the ATM security industry. One of the most significant developments in recent years is adopting and implementing the upcoming TR-31 standard. As we move into 2025, understanding the nuances of TR-31 is essential for financial institutions and ATM operators to ensure compliance and maintain robust security. This blog post delves into the latest updates on TR-31, offering insights and guidance to help you navigate this complex regulatory environment.

What is TR-31?

TR-31, or Technical Report 31, is a standard established by the Accredited Standards Committee X9 to govern the secure exchange of cryptographic keys used in financial transactions. The standard outlines the procedures and protocols for key distribution, ensuring that keys are managed and transmitted securely to prevent unauthorized access or tampering. This is particularly critical for maintaining the integrity and security of ATM networks, which are prime targets for cyberattacks.

Why TR-31 matters

The implementation of TR-31 is driven by the need to enhance the security of financial transactions and protect sensitive data from cyber threats. As financial institutions increasingly rely on digital transactions, the risk of cyberattacks has grown exponentially. TR-31 provides a robust framework for securing cryptographic keys, safeguarding the entire transaction process.

TR-31 will become necessary for PCI compliance in 2025, underscoring its importance in the global financial ecosystem.

Key updates for 2025

Enhanced security protocols

One of the major updates in TR-31 for 2025 is the enhancement of security protocols to address emerging threats. The standard now includes more stringent storage requirements for key management and more secure methods for key exchange. This update is designed to counteract sophisticated cyberattacks and ensure that financial institutions can maintain the highest levels of security.

Compliance deadlines

Financial institutions must be aware of the compliance deadlines associated with these updates. The compliance deadline for the new update has been set for January 1, 2025. These deadlines ensure that all institutions have sufficient time to implement the necessary changes and avoid potential penalties from regulatory bodies. Institutions must begin compliance early to meet these deadlines without disrupting their operations.

Steps to achieve compliance

Stay informed

Keeping up with the latest developments in TR-31 and related standards is essential. Regularly review updates from reputable sources, participate in industry forums, and engage with regulatory bodies to stay informed about new requirements and best practices.

Conduct a compliance audit

Perform a thorough audit of your current key management practices to identify gaps and areas that need improvement. This audit should cover all aspects of key management, including key generation, storage, distribution, and destruction.

Implement necessary changes

Based on the audit results, implement the necessary changes to your key management processes. This may involve upgrading your encryption algorithms, enhancing your key exchange protocols, and improving your overall security infrastructure.

Engage with experts

Consider engaging with external experts who specialize in TR-31 compliance. These experts can provide valuable insights and guidance, helping you navigate the standard's complexities and achieve compliance more efficiently.

The updates to TR-31 represent a significant step forward in enhancing the security of financial transactions. By understanding these updates and taking proactive steps to achieve compliance, financial institutions can protect themselves against emerging threats and maintain their customers' trust.

About James Wyler

James Wyler is the President of Trusted Security Solutions, a leading ATM key management solutions provider. Under his leadership, TSS has continued to deliver innovation and reliability, offering dependable solutions and expertise to financial institutions worldwide. With decades of leadership and technical experience, James has cultivated a reputation for delivering secure, efficient and compliant solutions that meet the dynamic challenges of the financial industry.

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Trusted Security's A98 System provides a compliant and efficient solution for establishing unique initial keys in each ATM. A98 uses remote key loading when possible and alternatively uses its patented Comvelope© solution to automate key loading of legacy ATMs.

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