1.2.1 Restrict inbound and outbound traffic to that which is necessary for the cardholder data environment, and specifically deny all other traffic

1.2.1.a Examine firewall and router configuration standards to verify that they identify inbound and outbound traffic necessary for the cardholder data environment.
1.2.1.b Examine firewall and router configurations to verify that inbound and outbound traffic is limited to that which is necessary for the cardholder data environment.
1.2.1.c Examine firewall and router configurations to verify that all other inbound and outbound traffic is specifically denied, for example by using an explicit “deny all” or an implicit deny after allow statement.

Examination of all inbound and outbound connections allows for inspection and restriction of traffic based on the source and/or destination address, thus preventing unfiltered access between untrusted and trusted environments. This prevents malicious individuals from accessing the entity’s network via unauthorized IP addresses or from using services, protocols, or ports in an unauthorized manner (for example, to send data they’ve obtained from within the entity’s network out to an untrusted server).

Implementing a rule that denies all inbound and outbound traffic that is not specifically needed helps to prevent inadvertent holes that would allow unintended and potentially harmful traffic in or out.