Tokenization

Tokenization is a security process where a sensitive data element, such as a credit card number or personal identifier, is replaced with a non-sensitive equivalent, known as a token. This token acts as a stand-in for the original data and can be safely used within databases or internal systems without exposing the actual sensitive information. The original data is stored securely in a separate location, often within a tokenization vault, and can only be retrieved or re-associated with its token through a secure process. This method significantly reduces the risk of data breaches by ensuring that sensitive information is not stored or transmitted in its original form, thus maintaining data privacy and compliance with regulatory requirements.