CDPSE · Question #317
An enterprise is planning to introduce a new product that involves geolocation tracking of customers. Which of the following is the BEST way to determine the associated risk?
The correct answer is D. Run a reversible hash on the customer data to allow for quick identification.. Despite the question framing, the answer choices all describe data handling approaches, and the question is really asking which approach best balances operational need with privacy risk management. A reversible hash (functionally equivalent to tokenization or pseudonymization) re
Question
An enterprise is planning to introduce a new product that involves geolocation tracking of customers. Which of the following is the BEST way to determine the associated risk?
Options
- AEnforce multi-factor authentication (MFA) for the analysts working on the fraud alerts.
- BEncrypt the customer data and decrypt only in cases of reasonable suspicion.
- CKeep the customer data in clear text to allow for real-time response.
- DRun a reversible hash on the customer data to allow for quick identification.
How the community answered
(43 responses)- A9% (4)
- B23% (10)
- C5% (2)
- D63% (27)
Explanation
Despite the question framing, the answer choices all describe data handling approaches, and the question is really asking which approach best balances operational need with privacy risk management. A reversible hash (functionally equivalent to tokenization or pseudonymization) replaces identifying data with a token that can be reversed to the original value when legally and operationally justified. This limits exposure of raw geolocation data in day-to-day processing while preserving the ability to re-identify when there is a valid reason (e.g., fraud investigation). Enforcing MFA (A) addresses analyst authentication, not the data exposure risk of the product itself. Encrypting and decrypting only on reasonable suspicion (B) is a strong control but may be too restrictive for real-time use cases. Keeping data in clear text (C) provides no privacy protection at all and maximizes risk.
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