Quick Answer
The correct answer is that users can create new IAM users and programmatic access keys, which directly enables privilege escalation. This risk arises because combining iam:CreateUser and iam:CreateAccessKey allows any authenticated user to generate a new IAM identity with full control over its own credentials, effectively bypassing existing permission boundaries and gaining unauthorized access to resources. On the AWS Certified Security Specialty SCS-C02 exam, this scenario tests your understanding of IAM’s delegation model and the principle of least privilege—a common trap is assuming these actions only affect logging or encryption, but they specifically create new identities with programmatic access. A memory tip: think of it as “identity creation equals credential creation,” meaning any policy allowing both actions is a backdoor for escalation.
This SCS-C02 practice question tests your understanding of identity and access management. 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 security engineer discovers that an IAM policy allows 'iam:CreateUser' and 'iam:CreateAccessKey' for all users in the account. Which risk does this pose?
Users can create new IAM users and programmatic access keys
This allows creation of new users and keys, which can be used for unauthorized access.
Users can disable CloudTrail logging
Why wrong: The policy does not allow CloudTrail actions.
Users can decrypt data in S3
Why wrong: The policy does not allow KMS or S3 actions.
Users can modify VPC security groups
Why wrong: The policy does not allow EC2 actions.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Users can create new IAM users and programmatic access keys
Option C is correct because creating access keys allows programmatic access, and creating users allows creation of new identities. Option A is incorrect because it does not directly affect logging. Option B is incorrect because it does not directly affect encryption. Option D is incorrect because it does not directly affect network traffic.
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.
Users can create new IAM users and programmatic access keys
Why this is correct
This allows creation of new users and keys, which can be used for unauthorized access.
Related concept
Read the scenario before looking for a memorised answer.
Users can disable CloudTrail logging
Why it's wrong here
The policy does not allow CloudTrail actions.
Users can decrypt data in S3
Why it's wrong here
The policy does not allow KMS or S3 actions.
Users can modify VPC security groups
Why it's wrong here
The policy does not allow EC2 actions.
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 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.
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FAQ
Identity and Access Management — This question tests Identity and Access Management — Read the scenario before looking for a memorised answer..
The correct answer is: Users can create new IAM users and programmatic access keys — Option C is correct because creating access keys allows programmatic access, and creating users allows creation of new identities. Option A is incorrect because it does not directly affect logging. Option B is incorrect because it does not directly affect encryption. Option D is incorrect because it does not directly affect network traffic.
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.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 20, 2026
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.
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