Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Multiple Choice

Which term is the process of converting data into a coded format?

Encryption is the process of converting data into a coded format to protect its confidentiality. By applying an algorithm and a key, readable information becomes scrambled so it can only be read again by someone who has the correct key. This is essential for keeping data secure in transit or at rest, such as when sending emails, browsing the web, or storing files. The other terms describe different things: a pig butchering scam is a social engineering fraud to extract money or information; ransomware is malware that locks or encrypts files and demands payment to restore access; financial activity compromise refers to unauthorized access to financial accounts or transactions. They aren’t about encoding data, so encryption is the right concept here.

Encryption is the process of converting data into a coded format to protect its confidentiality. By applying an algorithm and a key, readable information becomes scrambled so it can only be read again by someone who has the correct key. This is essential for keeping data secure in transit or at rest, such as when sending emails, browsing the web, or storing files.

The other terms describe different things: a pig butchering scam is a social engineering fraud to extract money or information; ransomware is malware that locks or encrypts files and demands payment to restore access; financial activity compromise refers to unauthorized access to financial accounts or transactions. They aren’t about encoding data, so encryption is the right concept here.