The answer is Microsoft Purview Data Loss Prevention (DLP). This is the correct choice because DLP policies are designed to detect sensitive information, such as credit card numbers, and automatically apply protective actions like encryption when an email containing that data is sent. On the SC-900 exam, this question tests your understanding of how DLP enforces data governance by scanning content in transit and triggering remediation, rather than relying on manual user labeling. A common trap is confusing DLP with sensitivity labels, but remember: sensitivity labels define the classification (e.g., "Highly Confidential"), while DLP is the engine that detects the credit card numbers and enforces the encryption action automatically. Retention labels and eDiscovery serve entirely different purposes—retention for lifecycle management and eDiscovery for search and export. For a quick memory tip: think of DLP as the "automatic enforcer" that sees the credit card data and locks the email with encryption, while labels just tag the file.
SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
This SC-900 practice question tests your understanding of describe the capabilities of microsoft compliance solutions. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 compliance officer wants to automatically classify emails containing credit card numbers as 'Highly Confidential' and apply encryption. Which Microsoft Purview feature should be used?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Microsoft Purview Data Loss Prevention (DLP)
Microsoft Purview Data Loss Prevention (DLP) policies can detect sensitive information like credit card numbers and automatically apply actions such as encryption. Option A is wrong because Sensitivity labels are manually applied or auto-classified via DLP, but DLP itself triggers the action. Option B is wrong because retention labels are for retention, not encryption. Option D is wrong because eDiscovery is for search and export.
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.
✗
Microsoft Purview Sensitivity Labels
Why it's wrong here
Sensitivity labels can apply encryption, but they need to be auto-classified by DLP policies or other mechanisms.
✗
Microsoft Purview Retention Labels
Why it's wrong here
Retention labels are for retention and disposition, not encryption.
✗
Microsoft Purview eDiscovery
Why it's wrong here
eDiscovery is for finding and exporting content, not for real-time protection.
✓
Microsoft Purview Data Loss Prevention (DLP)
Why this is correct
DLP policies can detect credit card numbers and automatically apply encryption and other actions.
Related concept
Read the scenario before looking for a memorised answer.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
Identify which SC-900 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.
Describe the capabilities of Microsoft compliance solutions — This question tests Describe the capabilities of Microsoft compliance solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Microsoft Purview Data Loss Prevention (DLP) — Microsoft Purview Data Loss Prevention (DLP) policies can detect sensitive information like credit card numbers and automatically apply actions such as encryption. Option A is wrong because Sensitivity labels are manually applied or auto-classified via DLP, but DLP itself triggers the action. Option B is wrong because retention labels are for retention, not encryption. Option D is wrong because eDiscovery is for search and export.
What should I do if I get this SC-900 question wrong?
Identify which SC-900 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.
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 →
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. A company wants to automatically detect emails in Exchange Online that contain credit card numbers and apply encryption to those emails before they are sent. Which Microsoft Purview solution should the administrator configure?
medium
A.Information Protection (sensitivity labels)
✓ B.Data Loss Prevention (DLP)
C.Data Lifecycle Management
D.eDiscovery
Why B: Data Loss Prevention (DLP) in Microsoft Purview is specifically designed to detect sensitive information such as credit card numbers in emails and automatically apply protective actions like encryption. DLP policies can scan Exchange Online messages in transit and enforce rules to encrypt the email before it is sent, which directly meets the requirement.
Last reviewed: Jun 21, 2026
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