IAPP CIPT Quiz:3 Topic:1 Questions:11-15

When analyzing user data, how is differential privacy applied?

Which of the following is one of the fundamental principles of information security?

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."

When initially collecting personal information from customers, what should Jane be guided by?

Under the Family Educational Rights and Privacy Act (FERPA), releasing personally identifiable information from a student's educational record requires written permission from the parent or eligible student in order for information to be?

SCENARIO

Wesley Energy has finally made its move, acquiring the venerable oil and gas exploration firm Lancelot from its long-time owner David Wilson. As a member of the transition team, you have come to realize that Wilson's quirky nature affected even Lancelot's data practices, which are maddeningly inconsistent. ''The old man hired and fired IT people like he was changing his necktie,'' one of Wilson's seasoned lieutenants tells you, as you identify the traces of initiatives left half complete.

For instance, while some proprietary data and personal information on clients and employees is encrypted, other sensitive information, including health information from surveillance testing of employees for toxic exposures, remains unencrypted, particularly when included within longer records with less-sensitive data. You also find that data is scattered across applications, servers and facilities in a manner that at first glance seems almost random.

Among your preliminary findings of the condition of data at Lancelot are the following:

* Cloud technology is supplied by vendors around the world, including firms that you have not heard of. You are told by a former Lancelot employee that these vendors operate with divergent security requirements and protocols.

* The company's proprietary recovery process for shale oil is stored on servers among a variety of less-sensitive information that can be accessed not only by scientists, but by personnel of all types at most company locations.

* DES is the strongest encryption algorithm currently used for any file.

* Several company facilities lack physical security controls, beyond visitor check-in, which familiar vendors often bypass.

* Fixing all of this will take work, but first you need to grasp the scope of the mess and formulate a plan of action to address it.

Which is true regarding the type of encryption Lancelot uses?