The central failure in the scenario is that a lost smartphone remained capable of accessing sensitive data, which means the organization lacked an effective lost device response control. In CEH-aligned mobile security guidance, one of the most important protections for lost or stolen devices is the ability to remotely secure the endpoint by locking it and wiping corporate data. This is typically implemented through Mobile Device Management tools and enterprise mobility controls. Registering devices with a remote locate and wipe facility ensures the security team can immediately take action once a device is reported missing, reducing the window in which an attacker can use stored sessions, cached credentials, saved tokens, or application access to reach protected resources such as patient records.

Option C is the best answer because it addresses both key needs implied by the incident: location capability to aid recovery and remote wipe to eliminate data exposure if recovery is uncertain. In healthcare environments, where protected health information is highly sensitive, CEH documentation emphasizes compensating controls that protect confidentiality when physical control of the device is lost. Remote wipe supports incident containment by preventing further access and limiting data disclosure.

Option B only provides tracking and does not guarantee data protection if the device cannot be recovered quickly. Option A helps protect data in transit on untrusted networks, but it does not solve the risk of a stolen device already authenticated to internal systems. Option D can help overall hygiene, but antivirus and DLP do not reliably stop misuse of a legitimately authenticated, lost device. Remote locate and wipe is the most direct mitigation for this exact gap.