This SCS-C02 practice question tests your understanding of data protection. 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's security policy requires that all data stored in Amazon S3 be encrypted using envelope encryption with a key hierarchy. The master key must be stored in a hardware security module (HSM) that is FIPS 140-2 Level 3 validated. Which solution should the company implement?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use AWS KMS with a custom key store backed by AWS CloudHSM.
Option C is correct because AWS KMS uses envelope encryption and supports custom key stores backed by CloudHSM, which is FIPS 140-2 Level 3 validated. Option A is wrong because KMS default key store uses FIPS 140-2 Level 2 validated HSMs. Option B is wrong because CloudHSM alone does not provide envelope encryption; you would need to implement it yourself. Option D is wrong because S3 does not have a built-in envelope encryption feature.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Use AWS KMS with a custom key store backed by AWS CloudHSM.
Why this is correct
Custom key store provides Level 3 HSMs and envelope encryption via KMS.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use AWS KMS with the default KMS key store.
Why it's wrong here
Default KMS key store uses Level 2 HSMs.
✗
Use Amazon S3 with SSE-S3 and enable default encryption.
Why it's wrong here
SSE-S3 uses envelope encryption but master key is managed by Amazon, not in customer HSM.
✗
Use AWS CloudHSM to generate a master key and implement envelope encryption in the application.
Why it's wrong here
CloudHSM provides Level 3 but requires custom implementation.
Common exam traps
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.
Detailed technical explanation
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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
Identify which SCS-C02 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.
Data Protection — This question tests Data Protection — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use AWS KMS with a custom key store backed by AWS CloudHSM. — Option C is correct because AWS KMS uses envelope encryption and supports custom key stores backed by CloudHSM, which is FIPS 140-2 Level 3 validated. Option A is wrong because KMS default key store uses FIPS 140-2 Level 2 validated HSMs. Option B is wrong because CloudHSM alone does not provide envelope encryption; you would need to implement it yourself. Option D is wrong because S3 does not have a built-in envelope encryption feature.
What should I do if I get this SCS-C02 question wrong?
Identify which SCS-C02 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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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This SCS-C02 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 SCS-C02 exam.
Question Discussion
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