Introduction
Data breaches and cyber attacks have become increasingly common in recent years. As more personal and sensitive data is stored digitally, companies must find new ways to protect that information. Security tokenization has emerged as an innovative approach that can help mitigate risks associated with storing and transmitting sensitive data.
What is Tokenization?
Tokenization is the process of replacing sensitive data like credit card numbers, social security numbers, and healthcare records with non-sensitive “tokens” or surrogate values. The token has no extrinsic meaning and contains no directly identifiable information about the data subject.
How Tokenization Works
The tokenization process follows three basic steps:
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The sensitive data is intercepted when entered into a system.
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A token is generated to take the place of the sensitive data using encryption algorithms. This token is a reference to the actual data which is stored securely on a separate tokenization server.
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The system stores and processes the token instead of the real data. When needed, the token can be un-tokenized to reveal the original sensitive data.
The token essentially acts as a stand-in, removing the sensitive data from systems that don’t need access to it. Only a centralized tokenization server can map the token back to the real data through decryption.
Benefits of Tokenization
Tokenization offers several advantages over traditional data security methods:
Reduced Scope for Compliance
- Since tokens have no meaning or value if breached, tokenization reduces the risk surface area. Systems storing tokens are not subject to compliance standards like systems storing real sensitive data.
Improved Operational Efficiency
- Tokenization allows new systems and applications to be quickly deployed without lengthy changes to comply with data security regulations.
Minimized System Integration Complexity
- Tokens can be passed to other systems and partners more freely than sensitive data, enabling easier integration.
Encryption Alternative
- Tokenization provides an option if encryption is not optimal, like systems where data must be visible in clear text.
Data Accuracy and Integrity
- Unlike encryption, tokenization preserves the exact format of the original data. The token can be substituted back without loss of accuracy.
Use Cases for Tokenization
Tokenization provides flexible protection across many different data security needs:
Payment Card Data Security
- Tokenizing payment card numbers de-values the data and minimizes risk in the event of a breach during transactions.
Securing Healthcare Records
- Healthcare organizations can tokenize patient social security numbers, insurance details, and treatment records to limit unauthorized access.
API and Web Services Security
- API data streams containing sensitive information can have those fields tokenized before transfer to protect external apps and services.
Cloud Storage Privacy
- Before storing data in the cloud, tokenization provides an extra layer of security and privacy.
Implementing a Tokenization Strategy
Here are key considerations when implementing tokenization:
- Choose between in-house tokenization using APIs and libraries or working with a tokenization service provider.
- Determine the correct token format – numeric, alphanumeric, or format preserving.
- Use multiple token domains to prevent different data types from having intersecting tokens.
- Have a centralized token mapping repository for tokenization and de-tokenization.
- Create a key management system for encryption keys used in token generation.
- Rotate and expire old tokens to reduce their value over time if compromised.
Conclusion
As data security remains a top concern, forward-thinking companies should consider adopting a tokenization strategy. Tokenizing sensitive data can help minimize risks associated with data breaches while enabling more flexible integration and operations. With the right implementation approach, tokenization provides a powerful new data protection tool.
