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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q116-Q121):

NEW QUESTION # 116
SCENARIO
Please use the following to answer the next question:
When there was a data breach involving customer personal and financial information at a large retail store, the company's directors were shocked. However, Roberta, a privacy analyst at the company and a victim of identity theft herself, was not. Prior to the breach, she had been working on a privacy program report for the executives. How the company shared and handled data across its organization was a major concern. There were neither adequate rules about access to customer information nor procedures for purging and destroying outdated data. In her research, Roberta had discovered that even low- level employees had access to all of the company's customer data, including financial records, and that the company still had in its possession obsolete customer data going back to the 1980s.
Her report recommended three main reforms. First, permit access on an as-needs-to-know basis.
This would mean restricting employees' access to customer information to data that was relevant to the work performed. Second, create a highly secure database for storing customers' financial information (e.g., credit card and bank account numbers) separate from less sensitive information.
Third, identify outdated customer information and then develop a process for securely disposing of it.
When the breach occurred, the company's executives called Roberta to a meeting where she presented the recommendations in her report. She explained that the company having a national customer base meant it would have to ensure that it complied with all relevant state breach notification laws. Thanks to Roberta's guidance, the company was able to notify customers quickly and within the specific timeframes set by state breach notification laws.
Soon after, the executives approved the changes to the privacy program that Roberta recommended in her report. The privacy program is far more effective now because of these changes and, also, because privacy and security are now considered the responsibility of every employee.
What could the company have done differently prior to the breach to reduce their risk?

A. Looked for any persistent threats to security that could compromise the company's network.
B. Implemented a comprehensive policy for accessing customer information.
C. Communicated requests for changes to users' preferences across the organization and with third parties.
D. Honored the promise of its privacy policy to acquire information by using an opt-in method.

Answer: B

Explanation:
The scenario suggests that the company lacked adequate rules about access to customer information, which increased the risk of unauthorized access and data breach. Implementing a comprehensive policy for accessing customer information would have helped the company to limit the access to only those who need it for legitimate purposes, and to protect the confidentiality, integrity, and availability of the data. This is also one of the recommendations that Roberta made in her report.

NEW QUESTION # 117
SCENARIO
Please use the following to answer the next QUESTION
Felicia has spent much of her adult life overseas, and has just recently returned to the U.S. to help her friend Celeste open a jewelry store in Californi a. Felicia, despite being excited at the prospect, has a number of security concerns, and has only grudgingly accepted the need to hire other employees. In order to guard against the loss of valuable merchandise, Felicia wants to carefully screen applicants. With their permission, Felicia would like to run credit checks, administer polygraph tests, and scrutinize videos of interviews. She intends to read applicants' postings on social media, ask Question:s about drug addiction, and solicit character references. Felicia believes that if potential employees are serious about becoming part of a dynamic new business, they will readily agree to these requirements.
Felicia is also in favor of strict employee oversight. In addition to protecting the inventory, she wants to prevent mistakes during transactions, which will require video monitoring. She also wants to regularly check the company vehicle's GPS for locations visited by employees. She also believes that employees who use their own devices for work-related purposes should agree to a certain amount of supervision.
Given her high standards, Felicia is skeptical about the proposed location of the store. She has been told that many types of background checks are not allowed under California law. Her friend Celeste thinks these worries are unfounded, as long as applicants verbally agree to the checks and are offered access to the results. Nor does Celeste share Felicia's concern about state breach notification laws, which, she claims, would be costly to implement even on a minor scale. Celeste believes that even if the business grows a customer database of a few thousand, it's unlikely that a state agency would hassle an honest business if an accidental security incident were to occur.
In any case, Celeste feels that all they need is common sense - like remembering to tear up sensitive documents before throwing them in the recycling bin. Felicia hopes that she's right, and that all of her concerns will be put to rest next month when their new business consultant (who is also a privacy professional) arrives from North Carolina.
Regarding credit checks of potential employees, Celeste has a misconception regarding what?

A. Consent requirements.
B. Disclosure requirements.
C. Records retention policies
D. Employment-at-will rules.

Answer: A

NEW QUESTION # 118
Smith Memorial Healthcare (SMH) is a hospital network headquartered in New York and operating in 7 other states. SMH uses an electronic medical record to enter and track information about its patients. Recently, SMH suffered a data breach where a third-party hacker was able to gain access to the SMH internal network.
Because it is a HIPPA-covered entity, SMH made a notification to the Office of Civil Rights at the U.S.
Department of Health and Human Services about the breach.
Which statement accurately describes SMH's notification responsibilities?

A. If SMH makes credit monitoring available to individuals who inquire, it will not have to make a separate notification to individuals in the state of New York.
B. If SMH has more than 500 patients in the state of New York, it will need to make separate notifications to these patients.
C. If SMH must make a notification in any other state in which it operates, it must also make a notification to individuals in New York.
D. If SMH is compliant with HIPAA, it will not have to make a separate notification to individuals in the state of New York.

Answer: C

Explanation:
The correct answer is C. If SMH must make a notification in any other state in which it operates, it must also make a notification to individuals in New York. Under the Health Insurance Portability and Accountability Act (HIPAA), SMH is required to notify the Office of Civil Rights (OCR) and the affected individuals of a data breach involving unsecured protected health information (PHI) within 60 days of discovery1. However, HIPAA does not preempt state laws that provide greater protection to individuals or impose additional obligations on covered entities2. Therefore, SMH must also comply with the state breach notification laws of the states where it operates, including New York.
According to the New York State Information Security Breach and Notification Act, any person or business that owns or licenses computerized data that includes private information of a resident of New York must disclose any breach of the security of the system to such resident in the most expedient time possible and without unreasonable delay, unless the exposure of the private information was inadvertent and unlikely to result in misuse or financial harm3. Private information includes personal information (such as name, number, or other identifier) plus one or more of the following data elements: social security number; driver's license number or non-driver identification card number; account number, credit or debit card number, in combination with any required security code, access code, password or other information that would permit access to an individual's financial account; biometric information; or a user name or e-mail address in combination with a password or security question and answer that would permit access to an online account3.
Therefore, if SMH's data breach involved any of these data elements of New York residents, SMH must notify them of the breach, regardless of whether SMH is compliant with HIPAA, has more than 500 patients in New York, or offers credit monitoring services. SMH must also notify the New York Attorney General, the Department of State, and the Division of State Police within 10 days of notifying the affected individuals3. Additionally, SMH must notify the New York Department of Health if the breach involved electronic health records4.
References: https://www.pdpc.gov.sg/-/media/Files/PDPC/PDF-Files/Other-Guides/Guide-on-Managing-and- Notifying-Data-Breaches-under-the-PDPA-15-Mar-2021.pdf?la=en
https://www.pcpd.org.hk/english/resources_centre/publications/files/guidance_note_dbn_e.pdf

NEW QUESTION # 119
Which of the following types of information would an organization generally NOT be required to disclose to law enforcement?

A. Personal health information under the HIPAA Privacy Rule
B. Information about workspace injuries under OSHA requirements
C. Information about medication errors under the Food, Drug and Cosmetic Act
D. Money laundering information under the Bank Secrecy Act of 1970

Answer: A

Explanation:
The HIPAA Privacy Rule generally prohibits covered entities and business associates from disclosing protected health information (PHI) to law enforcement without the individual's authorization, unless one of the exceptions in 45 CFR ?164.512 applies. These exceptions include disclosures required by law, disclosures for law enforcement purposes, disclosures about victims of abuse, neglect or domestic violence, disclosures for health oversight activities, disclosures for judicial and administrative proceedings, disclosures for research purposes, disclosures to avert a serious threat to health or safety, disclosures for specialized government functions, disclosures for workers' compensation, and disclosures to coroners and medical examiners. None of these exceptions apply to the type of information in option D, which is personal health information that is not related to any of the above purposes. Therefore, an organization would generally not be required to disclose such information to law enforcement under the HIPAA Privacy Rule.

NEW QUESTION # 120
A covered entity suffers a ransomware attack that affects the personal health information (PHI) of more than 500 individuals. According to Federal law under HIPAA, which of the following would the covered entity NOT have to report the breach to?

A. The local media
B. Department of Health and Human Services
C. Medical providers
D. The affected individuals

Answer: C

NEW QUESTION # 121
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