Tokenization
From Encyclopedia of Cybersecurity
Tokenization
Tokenization is a process of replacing sensitive data with non-sensitive equivalents called tokens. These tokens can be used in place of the actual sensitive data in transactions, reducing the risk of exposure and making the data less valuable to attackers.
How Tokenization Works
- Data Collection: When sensitive data, such as credit card information or personal identifiers, is collected, it is immediately replaced with a token.
- Token Assignment: The token is assigned to the original data and stored securely in a tokenization system or database.
- Token Usage: The token is used in transactions or data processing instead of the actual sensitive data.
- Token Decryption: When the original data is needed, the token is decrypted back into the original data using a secure process.
Benefits of Tokenization
- Security: Tokenization reduces the risk of data breaches by replacing sensitive data with tokens that are meaningless if intercepted.
- Compliance: Tokenization helps organizations comply with data protection regulations, such as the Payment Card Industry Data Security Standard (PCI DSS).
- Reduced Liability: Since tokens cannot be used to retrieve sensitive data, organizations are less liable for data breaches involving tokenized data.
- Convenience: Tokenization allows organizations to use tokens in place of sensitive data without changing their existing systems and processes.
Use Cases
- Payment Processing: Tokenization is commonly used in payment processing to protect credit card information during transactions.
- Personal Identifiers: Tokenization can be used to protect personal identifiers, such as social security numbers or addresses, in databases.
- Healthcare Data: Tokenization can be used to protect sensitive healthcare data, such as patient records, in compliance with regulations like HIPAA.
Conclusion
Tokenization is a powerful tool for protecting sensitive data and reducing the risk of data breaches. By replacing sensitive data with tokens, organizations can enhance their security posture and comply with data protection regulations.
