Exam CIPP-E topic 1 question 165 discussion

The correct answer is: **C. Legitimate interest** ### Explanation: Under the GDPR, **legitimate interest** is often the most appropriate legal basis for processing personal data for fraud prevention. Fraud prevention is generally considered a legitimate interest of businesses, as it serves both the interests of the organization in protecting its assets and the interests of its customers by maintaining secure transactions. Additionally, this basis allows organizations to process data without needing explicit consent, which may be impractical or unnecessary for such purposes. - **A** (Protection of the interests of the data subjects) may apply in cases of vital interest, typically involving life-or-death situations, so it’s not applicable here. - **B** (Performance of a contract) would not be directly applicable since fraud prevention is not directly necessary for fulfilling a purchase contract. - **D** (Consent) is generally not suitable for fraud prevention, as it could be easily withdrawn, potentially hindering the organization’s ability to prevent fraud effectively.