Under FACTA, what measure is required to protect Social Security numbers?

• A. Encryption of all data at rest only
• B. Restrict access only to executives
• C. Safeguards to minimize exposure and secure handling of Social Security numbers
• D. No special measures required

Answer: (C)

Safeguards to minimize exposure and secure handling of Social Security numbers are required under FACTA. The act calls for a layered protection approach—administrative, technical, and physical controls—so only individuals with a legitimate need can access SSNs, the data is protected when stored and transmitted, and records containing SSNs are disposed of properly. This broad, proactive stance goes beyond a single measure like encrypting data at rest or restricting access to a small group, and it certainly isn’t a no-measures-required scenario. The aim is to reduce the risk of identity theft by limiting opportunities for unauthorized exposure of this highly sensitive information.