If a hacker steals encrypted information from a bank, what is the requirement for notifying customers?

The correct choice reflects the understanding of data protection regulations and the inherent risks associated with encrypted information. If a hacker steals encrypted data, in many jurisdictions, there is typically no legal requirement to notify customers if the data remains encrypted and cannot be easily accessed or deciphered. This is based on the premise that encryption provides a layer of security that, if intact, mitigates the risk of identity theft or compromise of sensitive personal information.

Entities often have compliance obligations that specify conditions under which notification of data breaches is necessary. When data is encrypted, the understanding is that it is much more difficult for an unauthorized party to misuse that data. However, if the encryption is compromised or weak, the situation may differ, and an assessment of the encryption's strength may lead to different notification requirements.

This understanding significantly influences why regulations may exempt organizations from notifying customers in instances where encrypted data is involved, emphasizing the importance of robust encryption practices in protecting sensitive information.