Certified Information Privacy Professional CIPPE · Free Practice Question Easy
Question 9
An online payment platform collects government identification cards as additional information from customers to prevent fraud. What legal basis is the bank likely to rely on to process the customer's data?
- A Legal Obligation
- B Consent
- C Legitimate Basis
- D Contractual Basis
Reveal correct answer
Correct answer: C
Explanation
A bank can rely on legitimate basis in ensuring that its customers will not misuse the service or obtain services without payment. At the same time, the customers and the public would want fraudulent activities to be detected.
Under the GDPR, the processing of personal data strictly necessary for the purposes of preventing fraud constitutes a legitimate interest of the data controller concerned. In addition, the processing of personal data for direct marketing purposes may be regarded as carried out for a legitimate interest.
Discussion
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