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A financial services company must comply with PCI DSS requirements that mandate the use of a dedicated hardware security module (HSM) to store encryption keys used to protect cardholder data. The company plans to use server-side encryption in Amazon S3 and needs to ensure that the encryption keys are stored in a dedicated HSM under the company's sole control. Which AWS service should the company use to meet this requirement?

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A financial services company must comply with PCI DSS requirements that mandate the use of a dedicated hardware security module (HSM) to store encryption keys used to protect cardholder data. The company plans to use server-side encryption in Amazon S3 and needs to ensure that the encryption keys are stored in a dedicated HSM under the company's sole control. Which AWS service should the company use to meet this requirement?

Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Distractor review

AWS KMS with automatic key rotation

AWS KMS uses shared, multi-tenant HSMs managed by AWS, not a dedicated HSM under the customer's sole control. Automatic key rotation does not address the requirement for a dedicated HSM.

B

Distractor review

AWS Certificate Manager (ACM)

ACM is used for provisioning, managing, and deploying SSL/TLS certificates for use with AWS services. It does not provide dedicated HSM storage for encryption keys used in S3 server-side encryption.

C

Best answer

AWS CloudHSM

CloudHSM provides a dedicated HSM appliance that runs in the customer's VPC. The customer has exclusive control over the HSM and the keys it contains, meeting the PCI DSS requirement for a dedicated HSM under sole control.

D

Distractor review

AWS Secrets Manager

Secrets Manager is designed for securely storing and managing secrets such as database credentials and API keys. It does not provide dedicated HSM hardware for encryption key storage used with S3.

Common exam trap

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Technical deep dive

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Related practice questions

Related CLF-C02 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

Question 1

A developer needs to launch a test server for a new application prototype. The developer logs into the AWS Management Console, selects an Amazon EC2 instance type, configures the security group, and starts the instance. The instance is running within two minutes, and the developer did not need to submit a formal request to the company's IT procurement team or wait for approval from a cloud administrator. Which essential characteristic of cloud computing does this scenario best demonstrate?

Question 2

A solutions architect is planning a new web application on AWS. The workload will include 3 Amazon EC2 instances (t3.medium) running 24/7, an Application Load Balancer, and an Amazon RDS for MySQL db.t3.small database. The architect needs to estimate the monthly cost for the first year, considering different purchasing options (On-Demand, 1-year All Upfront Reserved Instance, and Compute Savings Plan). Which AWS tool should the architect use to create this estimate?

Question 3

A company's development team frequently needs temporary test environments. A developer can log into the AWS Management Console, select an Amazon EC2 instance type, configure storage, and launch the instance within minutes without any interaction with the IT infrastructure team. This capability is an example of which essential characteristic of cloud computing?

Question 4

A company's finance team needs to analyze AWS spending in detail. They require a report that includes hourly cost data for each AWS service, each individual resource (e.g., a specific EC2 instance), and any cost allocation tags applied. The team plans to export this data to an Amazon S3 bucket and then import it into a custom business intelligence (BI) analytics dashboard. Which AWS tool should the finance team use to generate this level of detailed cost data?

Question 5

A company uses AWS for its development environment. The finance team wants to set a monthly budget of $10,000. They want to receive an email notification when the actual costs reach 80% of the budget ($8,000) and again when costs exceed the budget. The team needs a managed AWS service that can automatically send these alerts without requiring custom code or third-party tools. Which AWS service should the team use?

Question 6

A company uses AWS Organizations to manage multiple accounts. The security team needs to enforce a policy that restricts SSH access (port 22) from the internet (0.0.0.0/0) in all VPCs across all accounts. The team wants to centrally define the allowed rules and automatically apply them to newly created VPCs and security groups, while also automatically remediating any existing non-compliant security groups. Which AWS service should the team use?

FAQ

Questions learners often ask

What does this CLF-C02 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: AWS CloudHSM — AWS CloudHSM provides a dedicated hardware security module appliance that runs in the customer's own VPC, giving the customer sole control over the encryption keys. AWS KMS also uses HSMs, but they are shared among multiple customers and are managed by AWS. AWS Certificate Manager manages SSL/TLS certificates, not encryption keys for S3. AWS Secrets Manager manages secrets like database credentials, not HSM-based key storage for S3 encryption.

What should I do if I get this CLF-C02 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

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