IAPP IAPP Certifications CIPT Questions & Answers

• Question 81:

  SCENARIO

  WebTracker Limited is a cloud-based online marketing service located in London. Last year, WebTracker migrated its IT infrastructure to the cloud provider AmaZure, which provides SQL Databases and Artificial Intelligence services to

  WebTracker. The roles and responsibilities between the two companies have been formalized in a standard contract, which includes allocating the role of data controller to WebTracker. The CEO of WebTracker, Mr. Bond, would like to

  assess the effectiveness of AmaZure's privacy controls, and he recently decided to hire you as an independent auditor. The scope of the engagement is limited only to the marketing services provided by WebTracker, you will not be evaluating

  any internal data processing activity, such as HR or Payroll.

  This ad-hoc audit was triggered due to a future partnership between WebTracker and SmartHome -- a partnership that will not require any data sharing. SmartHome is based in the USA, and most recently has dedicated substantial resources

  to developing smart refrigerators that can suggest the recommended daily calorie intake based on DNA information. This and other personal data is collected by WebTracker.

  To get an idea of the scope of work involved, you have decided to start reviewing the company's documentation and interviewing key staff to understand potential privacy risks.

  The results of this initial work include the following notes:

  There are several typos in the current privacy notice of WebTracker, and you were not able to find the privacy notice for SmartHome. You were unable to identify all the sub-processors working for SmartHome. No subcontractor is indicated in

  the cloud agreement with AmaZure, which is responsible for the support and maintenance of the cloud infrastructure. There are data flows representing personal data being collected from the internal employees of WebTracker, including an

  interface from the HR system. Part of the DNA data collected by WebTracker was from employees, as this was a prototype approved by the CEO of WebTracker.

  All the WebTracker and SmartHome customers are based in USA and Canada.

  Which of the following issues is most likely to require an investigation by the Chief Privacy Officer (CPO) of WebTracker?

  A. Data flows use encryption for data at rest, as defined by the IT manager.

  B. AmaZure sends newsletter to WebTracker customers, as approved by the Marketing Manager.

  C. Employees' personal data are being stored in a cloud HR system, as approved by the HR Manager.

  D. File Integrity Monitoring is being deployed in SQL servers, as indicated by the IT Architect Manager.

  Correct Answer: B

  Sending marketing communications such as newsletters to customers involves processing their personal data. It is important for WebTracker's CPO to investigate whether this processing is being done in compliance with applicable data protection laws and regulations. This may include verifying that customers have given their consent to receive these communications or that another lawful basis for processing their personal data exists.

• Question 82:

  Which of the following most embodies the principle of Data Protection by Default?

  A. A messaging app for high school students that uses HTTPS to communicate with the server.

  B. An electronic teddy bear with built-in voice recognition that only responds to its owner's voice.

  C. An internet forum for victims of domestic violence that allows anonymous posts without registration.

  D. A website that has an opt-in form for marketing emails when registering to download a whitepaper.

  Correct Answer: C

• Question 83:

  A privacy engineer has been asked to review an online account login page. He finds there is no limitation on the number of invalid login attempts a user can make when logging into their online account. What would be the best recommendation to minimize the potential privacy risk from this weakness?

  A. Implement a CAPTCHA system.

  B. Develop server-side input validation checks.

  C. Enforce strong password and account credentials.

  D. Implement strong Transport Layer Security (TLS) to ensure an encrypted link.

  Correct Answer: A

• Question 84:

  What is true of providers of wireless technology?

  A. They have the legal right in most countries to control and use any data on their systems.

  B. They can see all unencrypted data that crosses the system.

  C. They are typically exempt from data security regulations.

  D. They routinely backup data that crosses their system.

  Correct Answer: B

• Question 85:

  What distinguishes a "smart" device?

  A. It can perform multiple data functions simultaneously.

  B. It is programmable by a user without specialized training.

  C. It can reapply access controls stored in its internal memory.

  D. It augments its intelligence with information from the internet.

  Correct Answer: D

  Reference: https://towardsdatascience.com/what-is-a-smart-device-the-key-concept-of-the- internet-of-things-52da69f6f91b

• Question 86:

  Information classification helps an organization protect confidential and nonpublic information primarily because?

  A. It helps identify sensitive and critical information that require very strict safeguards.

  B. It falls under the security principles of confidentiality, integrity, and availability.

  C. It promotes employee accountability for safeguarding confidential information.

  D. It is legally required under most regulations.

  Correct Answer: A

  Information classification helps an organization protect confidential and nonpublic information primarily because it helps identify sensitive and critical information that require very strict safeguards.

• Question 87:

  SCENARIO

  Please use the following to answer the next question:

  Light Blue Health (LBH) is a healthcare technology company developing a new web and mobile application that collects personal health information from electronic patient health records. The application will use machine learning to

  recommend potential medical treatments and medications based on information collected from anonymized electronic health records. Patient users may also share health data collected from other mobile apps with the LBH app.

  The application requires consent from the patient before importing electronic health records into the application and sharing it with their authorized physicians or healthcare provider. The patient can then review and share the recommended

  treatments with their physicians securely through the app. The patient user may also share location data and upload photos in the app. The patient user may also share location data and upload photos in the app for a healthcare provider to

  review along with the health record. The patient may also delegate access to the app.

  LBH's privacy team meets with the Application development and Security teams, as well as key business stakeholders on a periodic basis. LBH also implements Privacy by Design (PbD) into the application development process.

  The Privacy Team is conducting a Privacy Impact Assessment (PIA) to evaluate privacy risks during development of the application. The team must assess whether the application is collecting descriptive, demographic or any other user

  related data from the electronic health records that are not needed for the purposes of the application. The team is also reviewing whether the application may collect additional personal data for purposes for which the user did not provide

  consent.

  Regarding the app, which action is an example of a decisional interference violation?

  A. The app asks income level to determine the treatment of care.

  B. The app sells aggregated data to an advertising company without prior consent.

  C. The app has a pop-up ad requesting sign-up for a pharmaceutical company newsletter.

  D. The app asks questions during account set-up to disclose family medical history that is not necessary for the treatment of the individual's symptoms.

  Correct Answer: A

  Asking for income level to determine treatment of care could be considered decisional interference because it could influence or interfere with an individual's ability to make decisions about their own healthcare. This type of information may not be necessary for providing medical recommendations and could potentially lead to discrimination or unequal treatment.

• Question 88:

  Which of the following suggests the greatest degree of transparency?

  A. A privacy disclosure statement clearly articulates general purposes for collection

  B. The data subject has multiple opportunities to opt-out after collection has occurred.

  C. A privacy notice accommodates broadly defined future collections for new products.

  D. After reading the privacy notice, a data subject confidently infers how her information will be used.

  Correct Answer: D

  After reading the privacy notice, a data subject confidently infers how her information will be used suggests the greatest degree of transparency3 https://www.informatica.com/resources/articles/what-is-data-quality.html

• Question 89:

  SCENARIO

  You have just been hired by Ancillary.com, a seller of accessories for everything under the sun, including waterproof stickers for pool floats and decorative bands and cases for sunglasses. The company sells cell phone cases, e-cigarette cases, wine spouts, hanging air fresheners for homes and automobiles, book ends, kitchen implements, visors and shields for computer screens, passport holders, gardening tools and lawn ornaments, and catalogs full of health and beauty products. The list seems endless. As the CEO likes to say, Ancillary offers, without doubt, the widest assortment of low-price consumer products from a single company anywhere.

  Ancillary's operations are similarly diverse. The company originated with a team of sales consultants selling home and beauty products at small parties in the homes of customers, and this base business is still thriving. However, the company now sells online through retail sites designated for industries and demographics, sites such as "My Cool Ride" for automobile-related products or "Zoomer" for gear aimed toward young adults. The company organization includes a plethora of divisions, units and outrigger operations, as Ancillary has been built along a decentered model rewarding individual initiative and flexibility, while also acquiring key assets. The retail sites seem to all function differently, and you wonder about their compliance with regulations and industry standards. Providing tech support to these sites is also a challenge, partly due to a variety of logins and authentication protocols.

  You have been asked to lead three important new projects at Ancillary:

  The first is the personal data management and security component of a multi-faceted initiative to unify the company's culture. For this project, you are considering using a series of third- party servers to provide company data and approved applications to employees.

  The second project involves providing point of sales technology for the home sales force, allowing them to move beyond paper checks and manual credit card imprinting.

  Finally, you are charged with developing privacy protections for a single web store housing all the company's product lines as well as products from affiliates. This new omnibus site will be known, aptly, as "Under the Sun." The Director of Marketing wants the site not only to sell Ancillary's products, but to link to additional products from other retailers through paid advertisements. You need to brief the executive team of security concerns posed by this approach.

  If you are asked to advise on privacy concerns regarding paid advertisements, which is the most important aspect to cover?

  A. Unseen web beacons that combine information on multiple users.

  B. Latent keys that trigger malware when an advertisement is selected.

  C. Personal information collected by cookies linked to the advertising network.

  D. Sensitive information from Structured Query Language (SQL) commands that may be exposed.

  Correct Answer: C

  The most important aspect to cover when advising on privacy concerns regarding paid advertisements would be C. Personal information collected by cookies linked to the advertising network. Cookies are small text files that are stored on a user's device by websites and advertising networks. They can be used to track a user's browsing behavior and collect personal information. This can raise privacy concerns as users may not be aware of the extent of data collection and how their personal information is being used.

• Question 90:

  Aadhaar is a unique-identity number of 12 digits issued to all Indian residents based on their biometric and demographic data. The data is collected by the Unique Identification Authority of India. The Aadhaar database contains the Aadhaar number, name, date of birth, gender and address of over 1 billion individuals.

  Which of the following datasets derived from that data would be considered the most de- identified?

  A. A count of the years of birth and hash of the person' s gender.

  B. A count of the month of birth and hash of the person's first name.

  C. A count of the day of birth and hash of the person's first initial of their first name.

  D. Account of the century of birth and hash of the last 3 digits of the person's Aadhaar number.

  Correct Answer: D

  This dataset would be considered the most de-identified because it removes most of the precise individual identifiers. The century of birth provides a very broad time frame, significantly reducing the likelihood of identifying an individual. Similarly, hashing the last three digits of the Aadhaar number instead of using more significant parts of the Aadhaar number or other direct identifiers (like full name or exact date of birth) further minimizes the risk of re-identification.