Final answer:
An Intrusion Detection System (IDS) cannot block or drop malicious traffic as it works in a passive monitoring mode, unlike an Intrusion Prevention System (IPS) which can actively intercept and prevent threats.
Step-by-step explanation:
The statement that an intrusion detection system (IDS) works inline and has the ability to drop malicious traffic is False. An IDS is primarily a monitoring system that detects suspicious activities and raises alerts. It operates in a passive mode, analyzing copies of network traffic. The system you're referring to, which works inline and can actively prevent or block malicious traffic, is called an intrusion prevention system (IPS).
An IDS is designed to monitor network traffic and alert administrators of potential attacks. It is the job of the security team to investigate these alerts and take action if necessary. Unlike an IDS, an IPS is placed directly in the path of the network traffic and has the capability to allow, block, or drop packets based on predefined security rules, functioning as a control mechanism in network security.