IAPP CIPT Practice Test - Questions Answers, Page 12

SCENARIO

Please use the following to answer the next question:

Chuck, a compliance auditor for a consulting firm focusing on healthcare clients, was required to travel to the client's office to perform an onsite review of the client's operations. He rented a car from Finley Motors upon arrival at the airport as so he could commute to and from the client's office.

The car rental agreement was electronically signed by Chuck and included his name, address, driver's license, make/model of the car, billing rate, and additional details describing the rental transaction.

On the second night, Chuck was caught by a red light camera not stopping at an intersection on his way to dinner. Chuck returned the car back to the car rental agency at the end week without mentioning the infraction and Finley Motors emailed a copy of the final receipt to the address on file.

Local law enforcement later reviewed the red light camera footage. As Finley Motors is the registered owner of the car, a notice was sent to them indicating the infraction and fine incurred. This notice included the license plate number, occurrence date and time, a photograph of the driver, and a web portal link to a video clip of the violation for further review. Finley Motors, however, was not responsible for the violation as they were not driving the car at the time and transferred the incident to AMP Payment Resources for further review. AMP Payment Resources identified Chuck as the driver based on the rental agreement he signed when picking up the car and then contacted Chuck directly through a written letter regarding the infraction to collect the fine.

After reviewing the incident through the AMP Payment Resources' web portal, Chuck paid the fine using his personal credit card. Two weeks later, Finley Motors sent Chuck an email promotion offering 10% off a future rental.

What should Finley Motors have done to incorporate the transparency principle of Privacy by Design (PbD)?

SCENARIO

Please use the following to answer the next question:

Chuck, a compliance auditor for a consulting firm focusing on healthcare clients, was required to travel to the client's office to perform an onsite review of the client's operations. He rented a car from Finley Motors upon arrival at the airport as so he could commute to and from the client's office.

The car rental agreement was electronically signed by Chuck and included his name, address, driver's license, make/model of the car, billing rate, and additional details describing the rental transaction.

On the second night, Chuck was caught by a red light camera not stopping at an intersection on his way to dinner. Chuck returned the car back to the car rental agency at the end week without mentioning the infraction and Finley Motors emailed a copy of the final receipt to the address on file.

Local law enforcement later reviewed the red light camera footage. As Finley Motors is the registered owner of the car, a notice was sent to them indicating the infraction and fine incurred. This notice included the license plate number, occurrence date and time, a photograph of the driver, and a web portal link to a video clip of the violation for further review. Finley Motors, however, was not responsible for the violation as they were not driving the car at the time and transferred the incident to AMP Payment Resources for further review. AMP Payment Resources identified Chuck as the driver based on the rental agreement he signed when picking up the car and then contacted Chuck directly through a written letter regarding the infraction to collect the fine.

After reviewing the incident through the AMP Payment Resources' web portal, Chuck paid the fine using his personal credit card. Two weeks later, Finley Motors sent Chuck an email promotion offering 10% off a future rental.

What is the most secure method Finley Motors should use to transmit Chuck's information to AMP Payment Resources?

SCENARIO

Please use the following to answer the next question:

Chuck, a compliance auditor for a consulting firm focusing on healthcare clients, was required to travel to the client's office to perform an onsite review of the client's operations. He rented a car from Finley Motors upon arrival at the airport as so he could commute to and from the client's office.

The car rental agreement was electronically signed by Chuck and included his name, address, driver's license, make/model of the car, billing rate, and additional details describing the rental transaction.

On the second night, Chuck was caught by a red light camera not stopping at an intersection on his way to dinner. Chuck returned the car back to the car rental agency at the end week without mentioning the infraction and Finley Motors emailed a copy of the final receipt to the address on file.

Local law enforcement later reviewed the red light camera footage. As Finley Motors is the registered owner of the car, a notice was sent to them indicating the infraction and fine incurred. This notice included the license plate number, occurrence date and time, a photograph of the driver, and a web portal link to a video clip of the violation for further review. Finley Motors, however, was not responsible for the violation as they were not driving the car at the time and transferred the incident to AMP Payment Resources for further review. AMP Payment Resources identified Chuck as the driver based on the rental agreement he signed when picking up the car and then contacted Chuck directly through a written letter regarding the infraction to collect the fine.

After reviewing the incident through the AMP Payment Resources' web portal, Chuck paid the fine using his personal credit card. Two weeks later, Finley Motors sent Chuck an email promotion offering 10% off a future rental.

How can Finley Motors reduce the risk associated with transferring Chuck's personal information to AMP Payment Resources?

SCENARIO

Please use the following to answer the next question:

Chuck, a compliance auditor for a consulting firm focusing on healthcare clients, was required to travel to the client's office to perform an onsite review of the client's operations. He rented a car from Finley Motors upon arrival at the airport as so he could commute to and from the client's office.

The car rental agreement was electronically signed by Chuck and included his name, address, driver's license, make/model of the car, billing rate, and additional details describing the rental transaction.

On the second night, Chuck was caught by a red light camera not stopping at an intersection on his way to dinner. Chuck returned the car back to the car rental agency at the end week without mentioning the infraction and Finley Motors emailed a copy of the final receipt to the address on file.

Local law enforcement later reviewed the red light camera footage. As Finley Motors is the registered owner of the car, a notice was sent to them indicating the infraction and fine incurred. This notice included the license plate number, occurrence date and time, a photograph of the driver, and a web portal link to a video clip of the violation for further review. Finley Motors, however, was not responsible for the violation as they were not driving the car at the time and transferred the incident to AMP Payment Resources for further review. AMP Payment Resources identified Chuck as the driver based on the rental agreement he signed when picking up the car and then contacted Chuck directly through a written letter regarding the infraction to collect the fine.

After reviewing the incident through the AMP Payment Resources' web portal, Chuck paid the fine using his personal credit card. Two weeks later, Finley Motors sent Chuck an email promotion offering 10% off a future rental.

What is the strongest method for authenticating Chuck's identity prior to allowing access to his violation information through the AMP Payment Resources web portal?

Which of the following statements best describes the relationship between privacy and security?

SCENARIO

Please use the following to answer the next question:

Jordan just joined a fitness-tracker start-up based in California, USA, as its first Information Privacy and Security Officer. The company is quickly growing its business but does not sell any of the fitness trackers itself. Instead, it relies on a distribution network of third-party retailers in all major countries. Despite not having any stores, the company has a 78% market share in the EU. It has a website presenting the company and products, and a member section where customers can access their information. Only the email address and physical address need to be provided as part of the registration process in order to customize the site to the user's region and country. There is also a newsletter sent every month to all members featuring fitness tips, nutrition advice, product spotlights from partner companies based on user behavior and preferences.

Jordan says the General Data Protection Regulation (GDPR) does not apply to the company. He says the company is not established in the EU, nor does it have a processor in the region. Furthermore, it does not do any "offering goods or services" in the EU since it does not do any marketing there, nor sell to consumers directly. Jordan argues that it is the customers who chose to buy the products on their own initiative and there is no "offering" from the company.

The fitness trackers incorporate advanced features such as sleep tracking, GPS tracking, heart rate monitoring. wireless syncing, calorie-counting and step-tracking. The watch must be paired with either a smartphone or a computer in order to collect data on sleep levels, heart rates, etc. All information from the device must be sent to the company's servers in order to be processed, and then the results are sent to the smartphone or computer. Jordan argues that there is no personal information involved since the company does not collect banking or social security information.

Why is Jordan's claim that the company does not collect personal information as identified by the GDPR inaccurate?

SCENARIO

Please use the following to answer the next question:

Jordan just joined a fitness-tracker start-up based in California, USA, as its first Information Privacy and Security Officer. The company is quickly growing its business but does not sell any of the fitness trackers itself. Instead, it relies on a distribution network of third-party retailers in all major countries. Despite not having any stores, the company has a 78% market share in the EU. It has a website presenting the company and products, and a member section where customers can access their information. Only the email address and physical address need to be provided as part of the registration process in order to customize the site to the user's region and country. There is also a newsletter sent every month to all members featuring fitness tips, nutrition advice, product spotlights from partner companies based on user behavior and preferences.

Jordan says the General Data Protection Regulation (GDPR) does not apply to the company. He says the company is not established in the EU, nor does it have a processor in the region. Furthermore, it does not do any "offering goods or services" in the EU since it does not do any marketing there, nor sell to consumers directly. Jordan argues that it is the customers who chose to buy the products on their own initiative and there is no "offering" from the company.

The fitness trackers incorporate advanced features such as sleep tracking, GPS tracking, heart rate monitoring. wireless syncing, calorie-counting and step-tracking. The watch must be paired with either a smartphone or a computer in order to collect data on sleep levels, heart rates, etc. All information from the device must be sent to the company's servers in order to be processed, and then the results are sent to the smartphone or computer. Jordan argues that there is no personal information involved since the company does not collect banking or social security information.

Based on the current features of the fitness watch, what would you recommend be implemented into each device in order to most effectively ensure privacy?

Which of the following statements is true regarding software notifications and agreements?

What is typically NOT performed by sophisticated Access Management (AM) techniques?