CFP CFP Cybersecurity & Data Privacy in Finance

Question 1

Which U.S. federal law primarily governs the privacy and security of consumer financial data held by financial institutions?

Accepted Answer

Gramm-Leach-Bliley Act (GLBA)

Answer

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to explain their data-sharing practices and protect sensitive consumer information.

Question 2

What type of attack involves cybercriminals intercepting communication between a fintech app and its server to steal credentials?

Accepted Answer

Man-in-the-middle (MITM) attack

Answer

A man-in-the-middle attack intercepts data in transit, making it critical for fintechs to use TLS/SSL encryption and certificate pinning.

Question 3

Which security framework is most widely adopted by U.S. financial institutions to manage cybersecurity risk?

Accepted Answer

NIST Cybersecurity Framework

Answer

The NIST Cybersecurity Framework (CSF) is the most widely adopted standard by U.S. financial institutions for identifying, protecting, detecting, responding to, and recovering from cyber threats.

Question 4

What does 'data minimization' mean in the context of fintech data privacy?

Accepted Answer

Collecting only the data necessary for the specified purpose

Answer

Data minimization is the principle of collecting and retaining only the personal data strictly necessary for a defined purpose, reducing exposure in case of a breach.

Question 5

Which payment card data security standard must fintech companies handling card transactions comply with?

Accepted Answer

PCI DSS

Answer

The Payment Card Industry Data Security Standard (PCI DSS) sets requirements for all entities that store, process, or transmit cardholder data.

(CFP) Certified Fintech Practitioner Practice Test

(CFP) Certified Fintech Practitioner Practice Test

CFP CFP Cybersecurity & Data Privacy in Finance