It is acceptable for merchants to store Sensitive Authentication Data after authorization as long as it is strongly encrypted. True or False?

The correct response to the question is that it is false for merchants to store Sensitive Authentication Data after authorization, even if it is strongly encrypted. According to the Payment Card Industry Data Security Standard (PCI DSS), Sensitive Authentication Data, which includes information like magnetic stripe data, card verification codes, and PIN numbers, must not be stored after authorization has occurred, regardless of whether the data is encrypted.

This regulation is in place to protect cardholder information from potential breaches and misuse. Storing this data poses significant security risks, as even encrypted data can be compromised if the encryption keys are exposed or if vulnerabilities in the encryption methods are exploited.

Understanding the rationale behind this rule is critical for maintaining compliance with PCI DSS and ensuring the security of payment card transactions. Compliance helps protect both the merchants and their customers from fraud and data breaches.