- A
Transparent Data Encryption (TDE) with a customer-managed key stored in Azure Key Vault.
Why wrong: TDE encrypts the entire database at rest, but DBAs can still query the data because SQL Server automatically decrypts the data when read. The encryption key is available to the service.
- B
Dynamic Data Masking (DDM) for the credit card column.
Why wrong: DDM masks the column in query results based on user permissions, but the underlying data is still stored in plaintext. Users with permissions can unmask the data, and it does not protect against DBAs.
- C
Always Encrypted with a client-side encryption key stored in Azure Key Vault.
Correct. Always Encrypted encrypts the data on the client side, so the SQL Database never sees the plaintext. Only the client application with access to the encryption key can decrypt the data, preventing DBAs from viewing sensitive columns.
- D
Row-Level Security (RLS) to restrict DBA access to the credit card column.
Why wrong: RLS restricts row-level access based on user context but does not provide column-level encryption. DBAs can still see the plaintext in the column if they have the appropriate permissions.
Quick Answer
The answer is Always Encrypted with a client-side encryption key stored in Azure Key Vault. This technology is the correct choice because it encrypts sensitive data, such as credit card numbers, on the client side before the data ever reaches Azure SQL Database, and the encryption keys are never shared with the database engine. As a result, even database administrators (DBAs) with full server access cannot view the plaintext data, since decryption requires the client-side key stored in Azure Key Vault and a dedicated client library. On the Microsoft Azure Security Engineer Associate AZ-500 exam, this scenario tests your understanding of how to prevent a DBA from viewing sensitive data using Always Encrypted, a common trap is confusing it with Transparent Data Encryption (TDE), which only protects data at rest and allows server-side access. A helpful memory tip is to think “client-side encryption keeps keys from the DBA’s eyes,” reinforcing that the encryption happens before the data is stored, not after.
AZ-500 Secure compute, storage, and databases Practice Question
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. 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 uses Azure SQL Database to store customer data, including credit card numbers. The security policy requires that database administrators (DBAs) must not be able to view the credit card numbers in plaintext. The column containing the credit card numbers must be encrypted at rest and in transit, and only a specific application (using a dedicated client library) should be able to decrypt the data. Which technology should they implement?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Always Encrypted with a client-side encryption key stored in Azure Key Vault.
Always Encrypted ensures that sensitive data, such as credit card numbers, is encrypted on the client side before being sent to Azure SQL Database, and the encryption keys are never revealed to the database engine. This prevents DBAs or any server-side administrators from viewing the plaintext data, as decryption can only occur using the client-side encryption key stored in Azure Key Vault and accessed by the dedicated application library.
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.
- ✗
Transparent Data Encryption (TDE) with a customer-managed key stored in Azure Key Vault.
Why it's wrong here
TDE encrypts the entire database at rest, but DBAs can still query the data because SQL Server automatically decrypts the data when read. The encryption key is available to the service.
- ✗
Dynamic Data Masking (DDM) for the credit card column.
Why it's wrong here
DDM masks the column in query results based on user permissions, but the underlying data is still stored in plaintext. Users with permissions can unmask the data, and it does not protect against DBAs.
- ✓
Always Encrypted with a client-side encryption key stored in Azure Key Vault.
Why this is correct
Correct. Always Encrypted encrypts the data on the client side, so the SQL Database never sees the plaintext. Only the client application with access to the encryption key can decrypt the data, preventing DBAs from viewing sensitive columns.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Row-Level Security (RLS) to restrict DBA access to the credit card column.
Why it's wrong here
RLS restricts row-level access based on user context but does not provide column-level encryption. DBAs can still see the plaintext in the column if they have the appropriate permissions.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Dynamic Data Masking (DDM) with encryption, not realizing that DDM only masks output and does not protect the underlying plaintext from privileged users or direct database access.
Detailed technical explanation
How to think about this question
Always Encrypted uses two types of keys: a column encryption key (CEK) that encrypts the actual data, and a column master key (CMK) that encrypts the CEK. The CMK is stored in Azure Key Vault and never leaves the client; the database engine only stores the encrypted CEK, ensuring that even with full database access, the plaintext cannot be derived. In a real-world scenario, if a DBA tries to query the credit card column directly, they will see only ciphertext, while the application using the dedicated client library (e.g., .NET SqlClient with Column Encryption Setting=enabled) can transparently decrypt the data.
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.
TExam Day Tips
- 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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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FAQ
Questions learners often ask
What does this AZ-500 question test?
Secure compute, storage, and databases — This question tests Secure compute, storage, and databases — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Always Encrypted with a client-side encryption key stored in Azure Key Vault. — Always Encrypted ensures that sensitive data, such as credit card numbers, is encrypted on the client side before being sent to Azure SQL Database, and the encryption keys are never revealed to the database engine. This prevents DBAs or any server-side administrators from viewing the plaintext data, as decryption can only occur using the client-side encryption key stored in Azure Key Vault and accessed by the dedicated application library.
What should I do if I get this AZ-500 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
1 more ways this is tested on AZ-500
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your company uses Azure SQL Database to store customer data. You need to ensure that database administrators cannot access sensitive columns (e.g., credit card numbers) even during maintenance. What should you implement?
medium- A.Transparent Data Encryption
- B.Dynamic Data Masking
- C.Row-level security
- ✓ D.Always Encrypted
Why D: Always Encrypted ensures that sensitive data is encrypted at the client side and the database engine never sees the plaintext. Option C is correct. Option A is wrong because Dynamic Data Masking masks data but can be bypassed. Option B is wrong because Transparent Data Encryption encrypts at rest, not in use. Option D is wrong because row-level security controls access to rows, not columns.
Last reviewed: Jun 11, 2026
This AZ-500 practice question is part of Courseiva's free Microsoft 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 AZ-500 exam.
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