IAPP Certified Information Privacy Technologist CIPT Exam Questions
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SCENARIO
Carol was a U.S.-based glassmaker who sold her work at art festivals. She kept things simple by only
accepting cash and personal checks.
As business grew, Carol couldn't keep up with demand, and traveling to festivals became
burdensome. Carol opened a small boutique and hired Sam to run it while she worked in the studio.
Sam was a natural salesperson, and business doubled. Carol told Sam, “I don't know what you are
doing, but keep doing it!"
But months later, the gift shop was in chaos. Carol realized that Sam needed help so she hired Jane,
who had business expertise and could handle the back-office tasks. Sam would continue to focus on
sales. Carol gave Jane a few weeks to get acquainted with the artisan craft business, and then
scheduled a meeting for the three of them to discuss Jane's first impressions.
At the meeting, Carol could not wait to hear Jane's thoughts, but she was unprepared for what Jane
had to say. “Carol, I know that he doesn't realize it, but some of Sam’s efforts to increase sales have
put you in a vulnerable position. You are not protecting customers’ personal information like you
should.”
Sam said, “I am protecting our information. I keep it in the safe with our bank deposit. It's only a list
of customers’ names, addresses and phone numbers that I get from their checks before I deposit
them. I contact them when you finish a piece that I think they would like. That's the only information
I have! The only other thing I do is post photos and information about your work on the photo
sharing site that I use with family and friends. I provide my email address and people send me their
information if they want to see more of your work. Posting online really helps sales, Carol. In fact, the
only complaint I hear is about having to come into the shop to make a purchase.”
Carol replied, “Jane, that doesn’t sound so bad. Could you just fix things and help us to post even
more online?"
‘I can," said Jane. “But it's not quite that simple. I need to set up a new program to make sure that
we follow the best practices in data management. And I am concerned for our customers. They
should be able to manage how we use their personal information. We also should develop a social
media strategy.”
Sam and Jane worked hard during the following year. One of the decisions they made was to contract
with an outside vendor to manage online sales. At the end of the year, Carol shared some exciting
news. “Sam and Jane, you have done such a great job that one of the biggest names in the glass
business wants to buy us out! And Jane, they want to talk to you about merging all of our customer
and vendor information with theirs beforehand."
Which regulator has jurisdiction over the shop's data management practices?
Correct Answer: A
The Federal Trade Commission (FTC) is responsible for protecting consumers in the U.S. by preventing fraudulent, deceptive, and unfair business practices. It has jurisdiction over commercial data privacy and security practices, including those of Carol’s shop. The FTC enforces data protection and privacy standards to ensure consumer information is handled appropriately. Reference: IAPP CIPT Study Guide: Regulatory Environment. IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on U.S. Privacy Laws and Regulations.
SCENARIO
It should be the most secure location housing data in all of Europe, if not the world. The Global Finance Data Collective (GFDC) stores financial information and other types of client data from large banks, insurance companies, multinational corporations and governmental agencies. After a long climb on a mountain road that leads only to the facility, you arrive at the security booth. Your credentials are checked and checked again by the guard to visually verify that you are the person pictured on your passport and national identification card. You are led down a long corridor with server rooms on each side, secured by combination locks built into the doors. You climb a flight of stairs and are led into an office that is lighted brilliantly by skylights where the GFDC Director of Security, Dr. Monique Batch, greets you. On the far wall you notice a bank of video screens showing different rooms in the facility. At the far end, several screens show different sections of the road up the mountain
Dr. Batch explains once again your mission. As a data security auditor and consultant, it is a dream assignment: The GFDC does not want simply adequate controls, but the best and most effective security that current technologies allow.
“We were hacked twice last year,” Dr. Batch says, “and although only a small number of records were stolen, the bad press impacted our business. Our clients count on us to provide security that is nothing short of impenetrable and to do so quietly. We hope to never make the news again.” She notes that it is also essential that the facility is in compliance with all relevant security regulations and standards.
You have been asked to verify compliance as well as to evaluate all current security controls and security measures, including data encryption methods, authentication controls and the safest methods for transferring data into and out of the facility. As you prepare to begin your analysis, you find yourself considering an intriguing question: Can these people be sure that I am who I say I am?
You are shown to the office made available to you and are provided with system login information, including the name of the wireless network and a wireless key. Still pondering, you attempt to pull up the facility ' s wireless network, but no networks appear in the wireless list. When you search for the wireless network by name, however it is readily found.
Why would you recommend that GFC use record encryption rather than disk, file or table encryption?
Correct Answer: B
Record encryption provides a more granular level of security compared to disk, file, or table encryption. It encrypts individual records within a database, which means that even if a breach occurs, the exposure is limited to the specific records accessed rather than the entire database or table. This granular approach minimizes the potential damage and data loss in case of a security breach. Additionally, it allows for more precise control over access and decryption, enhancing overall security measures within the facility.
A healthcare provider would like to data mine information for research purposes however the Chief Privacy Officer is concerned medical data of individuals may be disclosed overcome the concern, which is the preferred technique for protecting such data while still allowing for analysis?
Correct Answer: D
Perturbation is the preferred technique for protecting medical data while still allowing for analysis. Perturbation involves adding noise to the data to prevent the identification of individuals while preserving the overall patterns and trends in the dataset. This method is particularly useful in data mining for research purposes where privacy concerns must be addressed. The IAPP’s CIPT materials cover this technique under data anonymization and de-identification strategies, emphasizing its importance in research and analytics.
What Privacy by Design (PbD) element should include a de-identification or deletion plan?
Correct Answer: C
Privacy by Design (PbD) Principles: PbD emphasizes the proactive inclusion of privacy in the design and operation of IT systems, networks, and business practices.
Retention: The retention element in PbD involves specifying the duration for which personal data will be retained. This is crucial to ensure that data is not kept longer than necessary.
De-identification or Deletion: As part of the retention plan, organizations must decide on de-identifying or deleting personal data once it is no longer needed for its original purpose. This practice minimizes privacy risks associated with unnecessary data retention.
Reference: According to the IAPP ' s " Privacy by Design: The 7 Foundational Principles, " the principle of retention emphasizes that personal data should be retained only as long as necessary to fulfill the specified purposes and that secure deletion or de-identification procedures should be implemented.
A privacy technologist works at a company operating in a jurisdiction where customers have the right to have their personal data erased. What are the most important technological controls that the privacy technologist needs to implement to ensure personal data can be deleted?
Correct Answer: A
CIPT emphasizes that data discovery and mapping is the foundational prerequisite to honoring the right to erasure (right to be forgotten).
A company cannot delete what it cannot locate.
Data discovery tools allow a privacy technologist to:
Identify all systems, databases, logs, backups, and replicas where personal data exists
Map structured and unstructured data stores
Ensure downstream and third-party copies are detected
Enable accurate, complete, and lawful erasure across the data lifecycle
This directly aligns with:
CIPT’s Data Lifecycle Management training
ISO/IEC 27701 requirements for knowing data locations
GDPR Article 17 (erasure) expectations
NIST Privacy Framework: Data Processing Ecosystem Mapping
Why other options are not the most important control:
B — Automated deletion tools: Useful but impossible to implement correctly without knowing where data resides .
C — Audit trails: Essential for accountability, but they do not ensure data can be deleted.
D — User-facing deletion tools: Important but only act on front-end processes, not system-wide deletion.
➡ Correct Answer: A