Which statement about using production data for testing and development is correct?

Using production data, especially live Primary Account Numbers (PANs), in testing and development environments poses significant security risks and is against best practices outlined by the PCI Data Security Standards. The correct assertion emphasizes that live PANs must not be used for testing or development.

In production environments, live PANs are sensitive information that must be protected to prevent data breaches and unauthorized access. When testing or developing applications, using real cardholder data compromises the confidentiality and integrity of the information. Instead, it is highly recommended to use anonymized or tokenized data, which maintains the structure and format of the data without exposing actual sensitive information.

This approach helps organizations minimize the risk of introducing security vulnerabilities and ensures compliance with PCI DSS, which strictly prohibits the use of production data in non-production environments. This preventive measure highlights the commitment to maintaining the security of cardholder information throughout all phases of system development and testing.