Quick Answer
The answer is AWS CloudHSM. This is the correct choice because PCI DSS requires encryption at rest using a dedicated hardware security module (HSM) that meets FIPS 140-2 Level 3 validation, and CloudHSM provides a single-tenant, tamper-resistant HSM appliance under your exclusive control, ensuring the encryption keys for credit card data are never shared or accessible to AWS. On the AWS Certified SAP on AWS Specialty PAS-C01 exam, this question tests your understanding of compliance boundaries: KMS is FIPS 140-2 Level 2 overall and often a trap for those who overlook the stricter Level 3 requirement for PCI DSS, while S3 SSE and Secrets Manager handle storage or secret rotation, not dedicated key management. A common memory tip is to associate “PCI” with “Physical Control”—CloudHSM gives you physical ownership of the HSM, unlike KMS’s shared infrastructure.
This PAS-C01 practice question tests your understanding of migration. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company is migrating a critical application to AWS and needs to ensure compliance with PCI DSS. The application handles credit card numbers. Which AWS service should be used to encrypt the data at rest?
Amazon S3 server-side encryption
Why wrong: S3 SSE is for object storage, not for application-level encryption.
AWS Key Management Service (KMS)
Why wrong: KMS is FIPS 140-2 Level 2, not sufficient for some PCI requirements.
AWS CloudHSM
CloudHSM provides dedicated hardware security modules meeting PCI DSS requirements.
AWS Secrets Manager
Why wrong: Secrets Manager manages secrets, not encryption keys.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
AWS CloudHSM
Option A is correct because AWS CloudHSM provides dedicated HSM for PCI DSS. Option B is incorrect because KMS is not FIPS 140-2 Level 3. Option C is incorrect because S3 SSE is not for database encryption. Option D is incorrect because Secrets Manager manages secrets, not encryption keys.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Amazon S3 server-side encryption
Why it's wrong here
S3 SSE is for object storage, not for application-level encryption.
AWS Key Management Service (KMS)
Why it's wrong here
KMS is FIPS 140-2 Level 2, not sufficient for some PCI requirements.
AWS CloudHSM
Why this is correct
CloudHSM provides dedicated hardware security modules meeting PCI DSS requirements.
Related concept
Read the scenario before looking for a memorised answer.
AWS Secrets Manager
Why it's wrong here
Secrets Manager manages secrets, not encryption keys.
Common exam traps
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.
Detailed technical explanation
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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Identify which PAS-C01 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Migration — This question tests Migration — Read the scenario before looking for a memorised answer..
The correct answer is: AWS CloudHSM — Option A is correct because AWS CloudHSM provides dedicated HSM for PCI DSS. Option B is incorrect because KMS is not FIPS 140-2 Level 3. Option C is incorrect because S3 SSE is not for database encryption. Option D is incorrect because Secrets Manager manages secrets, not encryption keys.
Identify which PAS-C01 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 20, 2026
This PAS-C01 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PAS-C01 exam.
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