What is Tokenization?
Tokenization is the process of replacing sensitive data, such as credit card numbers or personal information, with unique identifiers called tokens.
These tokens hold no sensitive data themselves and can only be mapped back to the original information through a secure system. This method is widely used to enhance data security and reduce the risk of breaches.
How It Works
The original data (e.g., a credit card number) is submitted.
A secure system replaces the data by generating a token.
The original data is stored safely in a token vault, and the token is used for transactions or processing.
Only authorized systems can reverse the token to its original form when required.
Why It Matters
Data Security: Tokenization reduces the risk of exposing sensitive customer data. It Helps to meet standards like PCI DSS (for payment data) and GDPR (for personal data). Secure systems like these foster trust and confidence among users. Tokenization also minimizes the scope of security audits by protecting sensitive information effectively.
