What is a major misconception about encrypted data in regard to PCI DSS assessments?

A major misconception about encrypted data in the context of PCI DSS assessments is that encrypted data can be completely excluded from assessments. This belief stems from the assumption that once data is encrypted, it is no longer subject to the same scrutiny and security requirements as unencrypted data. However, this is not true.

In reality, while encryption is a significant security measure that helps protect sensitive data, it does not eliminate the necessity for a thorough assessment. Organizations must still implement and maintain appropriate security controls for encrypted data, including ensuring that encryption keys are managed properly and that access to the encrypted data is restricted. Moreover, the overall security posture of the entity still needs to be evaluated in the context of how encrypted data is handled, stored, and transmitted.

The other options address distinct aspects of data security and do not reflect the misconception concerning the exclusion of encrypted data from assessments. For example, encrypted data must still be stored securely and additional security measures beyond encryption are often necessary to protect sensitive information fully.