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An organization processes customer data from web and mobile applications. Data includes names, emails, phone numbers, and location history. Data arrives both as batch files (from SFTP daily) and streaming JSON events (from Kafka in real-time). To comply with data privacy policies, the following requirements must be met: * Personally Identifiable Information (PII) such as email, phone number, and IP address must be masked or anonymized before storage. * Both batch and streaming pipelines must apply consistent PII handling. * Masking logic must be auditable and reproducible. * The masked data must remain usable for downstream analytics. How should the data engineer design a compliant data pipeline on Databricks that supports both batch and streaming modes, applies data masking to PII, and maintains traceability for audits?
Correct Answer: D
Databricks recommends applying data masking or anonymization before persisting PII to ensure compliance with privacy regulations such as GDPR and HIPAA. In a Lakeflow Declarative Pipeline , developers can define custom Python or SQL-based masking functions to standardize PII handling across both batch and streaming inputs. This approach ensures that data entering the Delta Lake is already anonymized, guaranteeing consistent and auditable behavior. By applying masking during ingestion (in the Bronze layer), audit trails are preserved through pipeline event logs. While Unity Catalog column masks (option C) can enforce dynamic masking at query time, they do not prevent PII storage. Thus, option D aligns with the best practice of securing PII before storage , while still supporting reproducibility and analytics usability.