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    Question

    A company's employee used company data to log into

    client accounts without authorization and altered their account settings. The company suffered data breach reputation damage. Under the IT Act, which statements are correct? Statement 1: The employee's action violates Section 66 (unauthorized access). Statement 2: The company can claim civil remedy under Section 43 for damages. Statement 3: The company's failure to implement Section 43A data protection standards is a separate offense. Statement 4: The employee can claim exemption because they were authorized to access the company's systems. Which statements are correct?
    A Statements 1, 2, and 3 only Correct Answer Incorrect Answer
    B Statements 1 and 2 only Correct Answer Incorrect Answer
    C Statements 2 and 4 only Correct Answer Incorrect Answer
    D Statements 1, 2, and 4 only Correct Answer Incorrect Answer
    E All statements are correct Correct Answer Incorrect Answer

    Solution

    Unauthorized access to client accounts violates Section 66—Statement 1 is correct. Civil remedies are available under Section 43—Statement 2 is correct. Company's failure to implement data protection is a separate offense under Section 43A—Statement 3 is correct. Statement 4 is incorrect—authorization for company systems doesn't extend to client accounts. Statements 1, 2, and 3 are correct.

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