Certified Information Privacy Technologist (CIPT) — Question 284

Which of the following is an example of the privacy risks associated with the Internet of Things (loT)?

Answer options

• A. A group of hackers infiltrate a power grid and cause a major blackout.
• B. An insurance company raises a person's rates based on driving habits gathered from a connected car.
• C. A website stores a cookie on a user's hard drive so the website can recognize the user on subsequent visits.
• D. A water district fines an individual after a meter reading reveals excess water use during drought conditions.

Correct answer: B

Explanation

The correct answer is B because it illustrates how personal data from connected devices, like driving habits from a connected car, can be used to impact an individual's privacy and financial situation. The other options do not directly relate to the privacy risks of IoT; for example, A describes a security risk, C focuses on web tracking, and D pertains to regulatory compliance rather than privacy issues.