Which statement about encryption is accurate?

Prepare for the Coach CFE Exam. Study using flashcards and multiple-choice questions, each with hints and explanations. Get ready for your assessment!

Multiple Choice

Which statement about encryption is accurate?

Explanation:
Encryption protects information by making it unreadable without the proper key, helping keep data confidential both when it’s stored and when it’s transmitted. The statement that encryption should be used to protect all personal information stored by the company or sent to third parties best captures this goal, because personal data needs protection across all storage and sharing scenarios, not just in one narrow context. It isn’t optional, it isn’t limited to wireless networks, and it shouldn’t be restricted to customer data alone; applying encryption broadly reduces risk if systems are breached or data is intercepted and supports compliance with privacy and security requirements.

Encryption protects information by making it unreadable without the proper key, helping keep data confidential both when it’s stored and when it’s transmitted. The statement that encryption should be used to protect all personal information stored by the company or sent to third parties best captures this goal, because personal data needs protection across all storage and sharing scenarios, not just in one narrow context. It isn’t optional, it isn’t limited to wireless networks, and it shouldn’t be restricted to customer data alone; applying encryption broadly reduces risk if systems are breached or data is intercepted and supports compliance with privacy and security requirements.

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