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220-1101 · Question #920

A financial institution needs a secure way to protect encryption keys used for unlocking chips on its credit cards Which of the following should the institution use?

The correct answer is C. HSM. An HSM (Hardware Security Module) is a dedicated, tamper-resistant physical device designed to securely generate, store, and manage cryptographic keys. Financial institutions use HSMs to protect the encryption keys that secure chip-based (EMV) credit cards, PIN processing, and ot

Hardware

Question

A financial institution needs a secure way to protect encryption keys used for unlocking chips on its credit cards Which of the following should the institution use?

Options

  • ATLS
  • BAMD
  • CHSM
  • DARM

How the community answered

(30 responses)
  • A
    3% (1)
  • B
    7% (2)
  • C
    90% (27)

Explanation

An HSM (Hardware Security Module) is a dedicated, tamper-resistant physical device designed to securely generate, store, and manage cryptographic keys. Financial institutions use HSMs to protect the encryption keys that secure chip-based (EMV) credit cards, PIN processing, and other sensitive cryptographic operations. HSMs are certified to strict security standards (FIPS 140-2/3) and are the industry standard for this purpose. TLS (Transport Layer Security) is a protocol for encrypting data in transit, not for key storage. AMD and ARM are processor architectures, not security hardware for key management.

Topics

#HSM#Hardware Security#Key Management#Encryption

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