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How can Company A ensure end-to-end encryption for transferring sensitive data directly to Company B?

  1. Use a secure FTP server for the transfer.

  2. Establish a VPN between the two companies.

  3. Install an SSL tunneling service on the financial system.

  4. Enable encryption settings in the API documentation.

The correct answer is: Install an SSL tunneling service on the financial system.

To ensure end-to-end encryption when transferring sensitive data directly to another company, it is crucial to secure the entire communication channel between the two parties. Installing an SSL tunneling service on the financial system establishes an encrypted tunnel for data to be transmitted securely over potentially insecure networks. SSL (Secure Sockets Layer) provides a robust protocol that encrypts the data being transferred, ensuring that it remains confidential and cannot be intercepted or tampered with during transit. This approach ensures that the sensitive data is protected from eavesdropping and man-in-the-middle attacks while it travels from Company A to Company B. The SSL tunneling not only encrypts the data but also authenticates the communicating parties, further enhancing security during the transfer process. In contrast, using a secure FTP server primarily secures the transfer process through file transfer protocols but may not provide the same level of comprehensive communication encryption that SSL tunneling offers. Establishing a VPN, while effective for secure communication, may not specifically address the end-to-end encryption needs if not properly configured. Enabling encryption settings in the API documentation could secure data transmitted through APIs but does not guarantee that the entire communication path is encrypted without additional protocols or measures in place.