Exam CDPSE topic 1 question 206 discussion

Answer is B. Data encryption is the most effective method to reduce risks related to sharing personal data between a SaaS customer and a third party because it ensures that the data remains secure both during transmission and while stored. Even if the third party or external attackers gain access to the data, they won't be able to read it without the decryption keys. Wrong answers: A. Data hashing: While hashing can protect data integrity (confirming that data hasn’t been altered), it’s not suitable for securing personal data that needs to be reversed or used (e.g., for communication or processing) because it’s one-way and not meant for encryption. C. Data pseudonymization: This reduces the linkability of data to individuals but doesn’t prevent access or disclosure of sensitive information. It’s helpful for reducing risk but doesn’t fully secure the data like encryption. D. Data anonymization: This method removes personal identifiers completely, making it impossible to link data back to individuals, but it may not be suitable when the data needs to retain some level of identifiability or usability.

B. Data encryption

B. Data encryption

Pseudonymization is replacing identifying information with random codes, which can be linked back to the original person with extra information, whereas anonymization is the irreversible process of rendering personal data non-personal.