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CIPP-US Certified Information Privacy Professional/United States (CIPP/US) Questions and Answers

Questions 4

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?

Options:

A.

If SMH is compliant with HIPAA, 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 makes credit monitoring available to individuals who inquire, it will not have to make a separatenotification to individuals in the state of New York.

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Questions 5

Privacy Is Hiring Inc., a CA-based company, is an online specialty recruiting firm focusing on placing privacy professionals in roles at major companies. Job candidates create online profiles

outlining their experience and credentials, and can pay $19.99/month via credit card to have their profiles promoted to potential employers. Privacy Is Hiring Inc. keeps all customer data at rest encrypted on its servers.

Under what circumstances would Privacy Is Hiring Inc., need to notify affected individuals in the event of a data breach?

Options:

A.

If law enforcement has completed its investigation and has authorized Privacy Is Hiring Inc. to provide the notification to clients and applicable regulators.

B.

If the job candidates’ credit card information and the encryption keys were among the information taken.

C.

If Privacy Is Hiring Inc., reasonably believes that job candidates will be harmed by the data breach.

D.

If the personal information stolen included the individuals’ names and credit card pin numbers.

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Questions 6

Which of the following became the first state to pass a law specifically regulating the practices of data brokers?

Options:

A.

Washington.

B.

California.

C.

New York.

D.

Vermont.

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Questions 7

SCENARIO

Please use the following to answer the next QUESTION:

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer’s data handling practices.

The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-basedretailer of failing to respond to her withdrawal of consent and request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: “Please act immediately by identifying all personal data received from our company.”

This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup’s rapid market penetration.

As the Company’s data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

Upon review, the data privacy leader discovers that the Company’s documented data inventory is obsolete. What is the data privacy leader’s next best source of information to aid the investigation?

Options:

A.

Reports on recent purchase histories

B.

Database schemas held by the retailer

C.

Lists of all customers, sorted by country

D.

Interviews with key marketing personnel

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Questions 8

What is an exception to the Electronic Communications Privacy Act of 1986 ban on interception of wire, oral and electronic communications?

Options:

A.

Where one of the parties has given consent

B.

Where state law permits such interception

C.

If an organization intercepts an employee’s purely personal call

D.

Only if all parties have given consent

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Questions 9

What is the main purpose of the Global Privacy Enforcement Network?

Options:

A.

To promote universal cooperation among privacy authorities

B.

To investigate allegations of privacy violations internationally

C.

To protect the interests of privacy consumer groups worldwide

D.

To arbitrate disputes between countries over jurisdiction for privacy laws

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Questions 10

All of the following common law torts are relevant to employee privacy under US law EXCEPT?

Options:

A.

Infliction of emotional distress.

B.

Intrusion upon seclusion.

C.

Defamation

D.

Conversion.

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Questions 11

What do the Civil Rights Act, Pregnancy Discrimination Act, Americans with Disabilities Act, Age Discrimination Act, and Equal Pay Act all have in common?

Options:

A.

They require employers not to discriminate against certain classes when employees use personal information

B.

They require that employers provide reasonable accommodations to certain classes of employees

C.

They afford certain classes of employees’ privacy protection by limiting inquiries concerning their personal information

D.

They permit employers to use or disclose personal information specifically about employees who are members of certain classes

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Questions 12

Which of the following best describes private-sector workplace monitoring in the United States?

Options:

A.

Employers have broad authority to monitor their employees

B.

U.S. federal law restricts monitoring only to industries for which it is necessary

C.

Judgments in private lawsuits have severely limited the monitoring of employees

D.

Most employees are protected from workplace monitoring by the U.S. Constitution

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Questions 13

Under the Fair Credit Reporting Act (FCRA), what must a person who is denied employment based upon his credit history receive?

Options:

A.

A prompt notification from the employer.

B.

An opportunity to reapply with the employer.

C.

Information from several consumer reporting agencies (CRAs).

D.

A list of rights from the Consumer Financial Protection Bureau (CFPB).

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Questions 14

SuperMart is a large Nevada-based business that has recently determined it sells what constitutes “covered information” under Nevada’s privacy law, Senate Bill 260. Which of the following privacy compliance steps would best help SuperMart comply with the law?

Options:

A.

Providing a mechanism for consumers to opt out of sales.

B.

Implementing internal protocols for handling access and deletion requests.

C.

Preparing a notice of financial incentive for any loyalty programs offered to its customers.

D.

Reviewing its vendor contracts to ensure that the vendors are subject to service provider restrictions.

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Questions 15

According to the FTC Report of 2012, what is the main goal of Privacy by Design?

Options:

A.

Obtaining consumer consent when collecting sensitive data for certain purposes

B.

Establishing a system of self-regulatory codes for mobile-related services

C.

Incorporating privacy protections throughout the development process

D.

Implementing a system of standardization for privacy notices

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Questions 16

What important action should a health care provider take if the she wants to qualify for funds under the Health Information Technology for Economic and Clinical Health Act (HITECH)?

Options:

A.

Make electronic health records (EHRs) part of regular care

B.

Bill the majority of patients electronically for their health care

C.

Send health information and appointment reminders to patients electronically

D.

Keep electronic updates about the Health Insurance Portability and Accountability Act

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Questions 17

Which was NOT one of the five priority areas listed by the Federal Trade Commission in its 2012 report, “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers”?

Options:

A.

International data transfers

B.

Large platform providers

C.

Promoting enforceable self-regulatory codes

D.

Do Not Track

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Questions 18

Which statement is FALSE regarding the provisions of the Employee Polygraph Protection Act of 1988 (EPPA)?

Options:

A.

The EPPA requires that employers post essential information about the Act in a conspicuous location.

B.

The EPPA includes an exception that allows polygraph tests in professions in which employee honesty is necessary for public safety.

C.

Employers are prohibited from administering psychological testing based on personality traits such as honesty, preferences or habits.

D.

Employers involved in the manufacture of controlled substances may terminate employees based on polygraph results if other evidence exists.

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Questions 19

Which authority supervises and enforces laws regarding advertising to children via the Internet?

Options:

A.

The Office for Civil Rights

B.

The Federal Trade Commission

C.

The Federal Communications Commission

D.

The Department of Homeland Security

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Questions 20

The Family Educational Rights and Privacy Act (FERPA) requires schools to do all of the following EXCEPT?

Options:

A.

Verify the identity of students who make requests for access to their records.

B.

Provide students with access to their records within a specified amount of time.

C.

Respond to all reasonable student requests regarding explanation of their records.

D.

Obtain student authorization before releasing directory information in their records.

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Questions 21

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.

Which principle of the Consumer Privacy Bill of Rights, if adopted, would best reform the company’s privacy program?

Options:

A.

Consumers have a right to exercise control over how companies use their personal data.

B.

Consumers have a right to reasonable limits on the personal data that a company retains.

C.

Consumers have a right to easily accessible information about privacy and security practices.

D.

Consumers have a right to correct personal data in a manner that is appropriate to the sensitivity.

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Questions 22

Which federal act does NOT contain provisions for preempting stricter state laws?

Options:

A.

The CAN-SPAM Act

B.

The Children’s Online Privacy Protection Act (COPPA)

C.

The Fair and Accurate Credit Transactions Act (FACTA)

D.

The Telemarketing Consumer Protection and Fraud Prevention Act

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Questions 23

SCENARIO

Please use the following to answer the next QUESTION:

Matt went into his son’s bedroom one evening and found him stretched out on his bed typing on his laptop. “Doing your network?” Matt asked hopefully.

“No,” the boy said. “I’m filling out a survey.”

Matt looked over his son’s shoulder at his computer screen. “What kind of survey?” “It’s asking Questions about my opinions.”

“Let me see,” Matt said, and began reading the list of Questions that his son had already answered. “It’s asking your opinions about the government and citizenship. That’s a little odd. You’re only ten.”

Matt wondered how the web link to the survey had ended up in his son’s email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.

To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer Questions about his favorite games and toys.

Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son’s inbox, and he decided it was time to report the incident to the proper authorities.

How does Matt come to the decision to report the marketer’s activities?

Options:

A.

The marketer failed to make an adequate attempt to provide Matt with information

B.

The marketer did not provide evidence that the prize books were appropriate for children

C.

The marketer seems to have distributed his son’s information without Matt’s permission

D.

The marketer failed to identify himself and indicate the purpose of the messages

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Questions 24

SCENARIO

Please use the following to answer the next QUESTION:

Matt went into his son’s bedroom one evening and found him stretched out on his bed typing on his laptop. “Doing your network?” Matt asked hopefully.

“No,” the boy said. “I’m filling out a survey.”

Matt looked over his son’s shoulder at his computer screen. “What kind of survey?” “It’s asking Questions about my opinions.”

“Let me see,” Matt said, and began reading the list of Questions that his son had already answered. “It’s asking your opinions about the government and citizenship. That’s a little odd. You’re only ten.”

Matt wondered how the web link to the survey had ended up in his son’s email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids who took the survey were automatically registered in a contest to win the first book in a series about famous leaders.

To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer Questions about his favorite games and toys.

Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son’s inbox, and he decided it was time to report the incident to the proper authorities.

Based on the incident, the FTC’s enforcement actions against the marketer would most likely include what violation?

Options:

A.

Intruding upon the privacy of a family with young children.

B.

Collecting information from a child under the age of thirteen.

C.

Failing to notify of a breach of children’s private information.

D.

Disregarding the privacy policy of the children’s marketing industry.

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Questions 25

Global Manufacturing Co’s Human Resources department recently purchased a new software tool. This tool helps evaluate future candidates for executive roles by scanning emails to see what those candidates say and what is said about them. This provides the HR department with an automated “360 review” that lets them know how the candidate thinks and operates, what their peers and direct reports say about them, and how well they interact with each other.

What is the most important step for the Human Resources Department to take when implementing this new software?

Options:

A.

Making sure that the software does not unintentionally discriminate against protected groups.

B.

Ensuring that the software contains a privacy notice explaining that employees have no right to privacy as long as they are running this software on organization systems to scan email systems.

C.

Confirming that employees have read and signed the employee handbook where they have been advised that they have no right to privacy as long as they are using the organization’s systems, regardless of the protected group or laws enforced by EEOC.

D.

Providing notice to employees that their emails will be scanned by the software and creating automated profiles.

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Questions 26

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.

Based on the problems with the company’s privacy security that Roberta identifies, what is the most likely cause of the breach?

Options:

A.

Mishandling of information caused by lack of access controls.

B.

Unintended disclosure of information shared with a third party.

C.

Fraud involving credit card theft at point-of-service terminals.

D.

Lost company property such as a computer or flash drive.

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Questions 27

SCENARIO

Please use the following to answer the next QUESTION

Noah is trying to get a new job involving the management of money. He has a poor personal credit rating, but he has made better financial decisions in the past two years.

One potential employer, Arnie’s Emporium, recently called to tell Noah he did not get a position. As part of the application process, Noah signed a consent form allowing the employer to request his credit report from a consumer reporting agency (CRA). Noah thinks that the report hurt his chances, but believes that he may not ever know whether it was his credit that cost him the job. However, Noah is somewhat relieved that he was not offered this particular position. He noticed that the store where he interviewed was extremely disorganized. He imagines that his credit report could still

be sitting in the office, unsecured.

Two days ago, Noah got another interview for a position at Sam’s Market. The interviewer told Noah that his credit report would be a factor in the hiring decision. Noah was surprised because he had not seen anything on paper about this when he applied.

Regardless, the effect of Noah’s credit on his employability troubles him, especially since he has tried so hard to improve it. Noah made his worst financial decisions fifteen years ago, and they led to bankruptcy. These were decisions he made as a young man, and most of his debt at the time consisted of student loans, credit card debt, and a few unpaid bills – all of which Noah is still working to pay off. He often laments that decisions he made fifteen years ago are still affecting him today.

In addition, Noah feels that an experience investing with a large bank may have contributed to his financial troubles. In 2007, in an effort to earn money to help pay off his debt, Noah talked to a customer service representative at a large investment company who urged him to purchase stocks. Without understanding the risks, Noah agreed. Unfortunately, Noah lost a great deal of money.

After losing the money, Noah was a customer of another financial institution that suffered a large security breach. Noah was one of millions of customers whose personal information was compromised. He wonders if he may have been a victim of identity theft and whether this may have negatively affected his credit.

Noah hopes that he will soon be able to put these challenges behind him, build excellent credit, and find the perfect job.

Consumers today are most likely protected from situations like the one Noah had buying stock because of which federal action or legislation?

Options:

A.

The rules under the Fair Debt Collection Practices Act.

B.

The creation of the Consumer Financial Protection Bureau.

C.

Federal Trade Commission investigations into “unfair and deceptive” acts or practices.

D.

Investigations of “abusive” acts and practices under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

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Questions 28

The CFO of a pharmaceutical company is duped by a phishing email and discloses many of the company’s employee personnel files to an online predator. The files include employee contact information, job applications, performance reviews, discipline records, and job descriptions.

Which of the following state laws would be an affected employee’s best recourse against the employer?

Options:

A.

The state social security number confidentiality statute.

B.

The state personnel record review statute.

C.

The state data destruction statute.

D.

The state UDAP statute.

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Questions 29

All of the following are tasks in the “Discover” phase of building an information management program EXCEPT?

Options:

A.

Facilitating participation across departments and levels

B.

Developing a process for review and update of privacy policies

C.

Deciding how aggressive to be in the use of personal information

D.

Understanding the laws that regulate a company’s collection of information

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Questions 30

Which of the following is NOT a principle found in the APEC Privacy Framework?

Options:

A.

Integrity of Personal Information.

B.

Access and Correction.

C.

Preventing Harm.

D.

Privacy by Design.

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Questions 31

Which of the following is an example of federal preemption?

Options:

A.

The Payment Card Industry’s (PCI) ability to self-regulate and enforce data security standards for payment card data.

B.

The U.S. Federal Trade Commission’s (FTC) ability to enforce against unfair and deceptive trade practices across sectors and industries.

C.

The California Consumer Privacy Act (CCPA) regulating businesses that have no physical brick-and-mortal presence in California, but which do business there.

D.

The U.S. Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act prohibiting states from passing laws that impose greater obligations on senders of email marketing.

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Questions 32

Which venture would be subject to the requirements of Section 5 of the Federal Trade Commission Act?

Options:

A.

A local nonprofit charity’s fundraiser

B.

An online merchant’s free shipping offer

C.

A national bank’s no-fee checking promotion

D.

A city bus system’s frequent rider program

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Questions 33

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?

Options:

A.

Implemented a comprehensive policy for accessing customer information.

B.

Honored the promise of its privacy policy to acquire information by using an opt-in method.

C.

Looked for any persistent threats to security that could compromise the company’s network.

D.

Communicated requests for changes to users’ preferences across the organization and with third parties.

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Questions 34

SCENARIO

Please use the following to answer the next QUESTION:

Larry has become increasingly dissatisfied with his telemarketing position at SunriseLynx, and particularly with his supervisor, Evan. Just last week, he overheard Evan mocking the state’s Do Not Call list, as well as the people on it. “If they were really serious about not being bothered,” Evan said, “They’d be on the national DNC list. That’s the only one we’re required to follow. At SunriseLynx, we call until they ask us not to.”

Bizarrely, Evan requires telemarketers to keep records of recipients who ask them to call “another time.” This, to Larry, is a clear indication that they don’t want to be called at all. Evan doesn’t see it that way.

Larry believes that Evan’s arrogance also affects the way he treats employees. The U.S. Constitution protects American workers, and Larry believes that the rights of those at SunriseLynx are violated regularly. At first Evan seemed friendly, even connecting with employees on social media. However, following Evan’s political posts, it became clear to Larry that employees with similar affiliations were the only ones offered promotions.

Further, Larry occasionally has packages containing personal-use items mailed to work. Several times, these have come to him already opened, even though this name was clearly marked. Larry thinks the opening of personal mail is common at SunriseLynx, and that Fourth Amendment rights are being trampled under Evan’s leadership.

Larry has also been dismayed to overhear discussions about his coworker, Sadie. Telemarketing calls are regularly recorded for quality assurance, and although Sadie is always professional during business, her personal conversations sometimes contain sexual comments. This too is something Larry has heard Evan laughing about. When he mentioned this to a coworker, his concern was met with a shrug. It was the coworker’s belief that employees agreed to be monitored when they signed on. Although personal devices are left alone, phone calls, emails and browsing histories are all subject to surveillance. In fact, Larry knows of one case in which an employee was fired after an undercover investigation by an outside firm turned up evidence of misconduct. Although the employee may have stolen from the company, Evan could have simply contacted the authorities when he first suspected something amiss.

Larry wants to take action, but is uncertain how to proceed.

In regard to telemarketing practices, Evan the supervisor has a misconception regarding?

Options:

A.

The conditions under which recipients can opt out

B.

The wishes of recipients who request callbacks

C.

The right to monitor calls for quality assurance

D.

The relationship of state law to federal law

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Questions 35

U.S. federal laws protect individuals from employment discrimination based on all of the following EXCEPT?

Options:

A.

Age.

B.

Pregnancy.

C.

Marital status.

D.

Genetic information.

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Questions 36

SCENARIO

Please use the following to answer the next QUESTION:

You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo’s business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth’s security measures.

A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals – ones that exposed the PHI of public figures including celebrities and politicians.

During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.

A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual’s ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient’s attorney has submitted a discovery request for the ePHI exposed in the breach.

Which of the following would be HealthCo’s best response to the attorney’s discovery request?

Options:

A.

Reject the request because the HIPAA privacy rule only permits disclosure for payment, treatment or healthcare operations

B.

Respond with a request for satisfactory assurances such as a qualified protective order

C.

Turn over all of the compromised patient records to the plaintiff’s attorney

D.

Respond with a redacted document only relative to the plaintiff

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Questions 37

Federal laws establish which of the following requirements for collecting personal information of minors under the age of 13?

Options:

A.

Implied consent from a minor’s parent or guardian, or affirmative consent from the minor.

B.

Affirmative consent from a minor’s parent or guardian before collecting the minor’s personal information online.

C.

Implied consent from a minor’s parent or guardian before collecting a minor’s personal information online, such as when they permit the minor to use the internet.

D.

Affirmative consent of a parent or guardian before collecting personal information of a minor offline (e.g., in person), which also satisfies any requirements for online consent.

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Questions 38

SCENARIO

Please use the following to answer the next QUESTION:

You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo’s business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security

measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth’s security measures.

A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals – ones that exposed the PHI of public figures including celebrities and politicians.

During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.

A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual’s ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient’s attorney has submitted a discovery request for the ePHI exposed in the breach.

What is the most significant reason that the U.S. Department of Health and Human Services (HHS) might impose a penalty on HealthCo?

Options:

A.

Because HealthCo did not require CloudHealth to implement appropriate physical and administrative measures to safeguard the ePHI

B.

Because HealthCo did not conduct due diligence to verify or monitor CloudHealth’s security measures

C.

Because HIPAA requires the imposition of a fine if a data breach of this magnitude has occurred

D.

Because CloudHealth violated its contract with HealthCo by not encrypting the ePHI

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Questions 39

SCENARIO

Please use the following to answer the next QUESTION

Matt went into his son’s bedroom one evening and found him stretched out on his bed typing on his laptop. “Doing your homework?” Matt asked hopefully.

“No,” the boy said. “I’m filling out a survey.”

Matt looked over his son’s shoulder at his computer screen. “What kind of survey?” “It’s asking QUESTION NO:s about my opinions.”

“Let me see,” Matt said, and began reading the list of QUESTION NO:s that his son had already answered. “It’s asking your opinions about the government and citizenship. That’s a little odd. You’re only ten.”

Matt wondered how the web link to the survey had ended up in his son’s email inbox. Thinking the message might have been sent to his son by mistake he opened it and read it. It had come from an entity called the Leadership Project, and the content and the graphics indicated that it was intended for children. As Matt read further he learned that kids whotook the survey were automatically registered in a contest to win the first book in a series about famous leaders.

To Matt, this clearly seemed like a marketing ploy to solicit goods and services to children. He asked his son if he had been prompted to give information about himself in order to take the survey. His son told him he had been asked to give his name, address, telephone number, and date of birth, and to answer QUESTION NO:s about his favorite games and toys.

Matt was concerned. He doubted if it was legal for the marketer to collect information from his son in the way that it was. Then he noticed several other commercial emails from marketers advertising products for children in his son’s inbox, and he decided it was time to report the incident to the proper authorities.

Depending on where Matt lives, the marketer could be prosecuted for violating which of the following?

Options:

A.

Investigative Consumer Reporting Agencies Act.

B.

Unfair and Deceptive Acts and Practices laws.

C.

Consumer Bill of Rights.

D.

Red Flag Rules.

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Questions 40

SCENARIO

Please use the following to answer the next QUESTION:

Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer’s privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.

Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.

After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer’s personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.

Janice understood Cheryl’s concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company’s day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.

Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.

What is the best reason for Cheryl to follow Janice’s suggestion about classifying customer data?

Options:

A.

It will help employees stay better organized

B.

It will help the company meet a federal mandate

C.

It will increase the security of customers’ personal information (PI)

D.

It will prevent the company from collecting too much personal information (PI)

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Questions 41

What does the Massachusetts Personal Information Security Regulation require as it relates to encryption of personal information?

Options:

A.

The encryption of all personal information of Massachusetts residents when all equipment is located in Massachusetts.

B.

The encryption of all personal information stored in Massachusetts-based companies when all equipment is located in Massachusetts.

C.

The encryption of personal information stored in Massachusetts-based companies when stored on portable devices.

D.

The encryption of all personal information of Massachusetts residents when stored on portable devices.

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Questions 42

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?

Options:

A.

Department of Health and Human Services

B.

The affected individuals

C.

The local media

D.

Medical providers

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Questions 43

Which federal law or regulation preempts state law?

Options:

A.

Health Insurance Portability and Accountability Act

B.

Controlling the Assault of Non-Solicited Pornography and Marketing Act

C.

Telemarketing Sales Rule

D.

Electronic Communications Privacy Act of 1986

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Questions 44

A law enforcement subpoenas the ACME telecommunications company for access to text message records of a person suspected of planning a terrorist attack. The company had previously encrypted its text message records so that only the suspect could access this data.

What law did ACME violate by designing the service to prevent access to the information by a law enforcement agency?

Options:

A.

SCA

B.

ECPA

C.

CALEA

D.

USA Freedom Act

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Questions 45

What practice does the USA FREEDOM Act NOT authorize?

Options:

A.

Emergency exceptions that allows the government to target roamers

B.

An increase in the maximum penalty for material support to terrorism

C.

An extension of the expiration for roving wiretaps

D.

The bulk collection of telephone data and internet metadata

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Questions 46

Which of the following is commonly required for an entity to be subject to breach notification requirements under most state laws?

Options:

A.

The entity must conduct business in the state

B.

The entity must have employees in the state

C.

The entity must be registered in the state

D.

The entity must be an information broker

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Questions 47

If an organization maintains data classified as high sensitivity in the same system as data classified as low sensitivity, which of the following is the most likely outcome?

Options:

A.

The organization will still be in compliance with most sector-specific privacy and security laws.

B.

The impact of an organizational data breach will be more severe than if the data had been segregated.

C.

Temporary employees will be able to find the data necessary to fulfill their responsibilities.

D.

The organization will be able to address legal discovery requests efficiently without producing more information than necessary.

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Questions 48

In 2012, the White House and the FTC both issued reports advocating a new approach to privacy enforcement that can best be described as what?

Options:

A.

Harm-based.

B.

Self-regulatory.

C.

Comprehensive.

D.

Notice and choice.

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Questions 49

A student has left high school and is attending a public postsecondary institution. Under what condition may a school legally disclose educational records to the parents of the student without consent?

Options:

A.

If the student has not yet turned 18 years of age

B.

If the student is in danger of academic suspension

C.

If the student is still a dependent for tax purposes

D.

If the student has applied to transfer to another institution

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Questions 50

An organization self-certified under Privacy Shield must, upon request by an individual, do what?

Options:

A.

Suspend the use of all personal information collected by the organization to fulfill its original purpose.

B.

Provide the identities of third parties with whom the organization shares personal information.

C.

Provide the identities of third and fourth parties that may potentially receive personal information.

D.

Identify all personal information disclosed during a criminal investigation.

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Exam Code: CIPP-US
Exam Name: Certified Information Privacy Professional/United States (CIPP/US)
Last Update: Dec 2, 2024
Questions: 194
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