Quick Answer
The answer is excessive privileges and data exposure via S3 bucket. A permissive IAM policy that allows all actions on all resources violates the principle of least privilege, granting users far more access than needed, which directly enables privilege escalation by allowing an attacker to modify their own permissions or access unintended services. This same policy also leaves data stores like S3 buckets wide open, as any authenticated user can read, write, or delete sensitive objects, leading directly to data exposure. On the Certified Ethical Hacker CEH exam, this scenario tests your understanding of cloud attack vectors and misconfiguration risks, often appearing in questions about AWS IAM or identity-based threats. A common trap is focusing only on network-level attacks, but the core issue here is authorization logic, not encryption or firewalls. Remember the mnemonic “PED” for Permissive policies cause Excessive privileges and Data exposure—if the policy says “Allow * on *,” think S3 leaks and privilege creep.
This CEH practice question tests your understanding of advanced topics: wireless, cloud, iot, cryptography. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
An organization is using a cloud IAM policy that allows all actions on all resources. Which TWO security issues are MOST directly related to this configuration? (Choose two.)
Excessive privileges
Allowing all actions grants more permissions than necessary.
Vulnerable software libraries
Why wrong: Software libraries are unrelated to IAM policies.
Weak encryption algorithms
Why wrong: IAM policies do not control encryption algorithms.
Data exposure via S3 bucket
Overly permissive IAM can allow attackers to access and exfiltrate data.
Insecure MQTT configuration
Why wrong: MQTT is a separate IoT protocol issue.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Excessive privileges
A permissive IAM policy directly leads to excessive privileges and potential privilege escalation, as well as data exposure via unauthorized access.
Key principle: Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Excessive privileges
Why this is correct
Allowing all actions grants more permissions than necessary.
Related concept
Authentication checks who the user is.
Vulnerable software libraries
Why it's wrong here
Software libraries are unrelated to IAM policies.
Weak encryption algorithms
Why it's wrong here
IAM policies do not control encryption algorithms.
Data exposure via S3 bucket
Why this is correct
Overly permissive IAM can allow attackers to access and exfiltrate data.
Related concept
Authentication checks who the user is.
Insecure MQTT configuration
Why it's wrong here
MQTT is a separate IoT protocol issue.
Common exam traps
Logging in proves the user can authenticate. It does not automatically mean the user is allowed to enter privileged or configuration mode. Watch for AAA authorization, privilege level and command authorization details.
Detailed technical explanation
This kind of question is testing the difference between identity and permission. A user may successfully log in to a router because authentication is working, but still fail to enter configuration mode because authorization is missing, misconfigured or mapped to a lower privilege level.
Key takeaway
Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Real-world example
A junior network technician can log in to a core router but cannot reach the enable prompt or configuration mode. The AAA server is authenticating the login — but the authorisation policy only grants privilege level 1, not 15. Authentication (who you are) is working; authorisation (what you can do) is not.
What to study next
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related CEH questions on access control and AAA configuration.
Advanced Topics: Wireless, Cloud, IoT, Cryptography — study guide chapter
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FAQ
Advanced Topics: Wireless, Cloud, IoT, Cryptography — This question tests Advanced Topics: Wireless, Cloud, IoT, Cryptography — Authentication checks who the user is..
The correct answer is: Excessive privileges — A permissive IAM policy directly leads to excessive privileges and potential privilege escalation, as well as data exposure via unauthorized access.
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related CEH questions on access control and AAA configuration.
Authentication checks who the user is.
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Last reviewed: Jun 21, 2026
This CEH practice question is part of Courseiva's free EC-Council 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 CEH exam.
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