What are the Benefits of Tokenization for Data Security?
After Apple released their new Apple Pay for secure mobile and online payments, tokenization has become a hot topic in data security. Tokenization was designed to prevent hackers from stealing customer’s data. The new technology replaces real data with a token or fake data that has no use to a hacker.
Tokenization will de-identify any critical or sensitive data that is defined by HIPAA, NIST and PCI DSS. Therefore, tokenization replaces social security numbers, PII, PHI, addresses, names, and credit card number. Token security has the same appearance of the data it replaces. Companies need to modify their existing system to use tokens for processing their data. This year the CSIS report states that last year data breaches affected 100 million people and cost companies $400 billion.
As more organizations turn to big data the sophistication, risk and cost of data breaches increases. Each year the laws governing data security are reformed and debated globally. Therefore, more organizations are implementing tokenization as a means of protecting their data. Unfortunately, not all tokenization is equal. The modern vaultless tokenization offers the most security for organization that need to protect their sensitive data and customer’s information.
What Are The Five Characteristics Of Tokenization?
1. Data Protection
Tokenization replaces sensitive data with information that has no value to a thief and protects your organization data. Today, data encryption isn’t safe for enterprises. After a security breach the cybercriminal can use brute force to find your encryption key and unlock your data. Therefore, when your organization uses tokenization it safeguards your organization against financial liabilities, protect sensitive data and your customer’s data if your system is compromised.
2. Analytical Value
Tokenization preserves the original length and data type. However, tokenization can’t de-identify numbers and small characters and they remain exposed. But, tokenization remains consistent with the data patters matching and analysis. Therefore, this protects your data and your organization can continue to process your daily work loads. The small amount of data that is exposed isn’t sufficient for a hacker to breach your systems. Vaultless tokenization provides continuous data protection.
3. Cloud Storage
In the past few years, many organizations have started to store large amount of data with cloud services to reduce operational costs. However, some organizations want to take advantage of the lower cost of data storage, but are fearful of the security implications. However, when an organization uses tokenization before the data leaves their business they have a legal and secure pathway to store their data off-site.
4. Data Value
Today, enterprises have tripled the size of their data storage and continue to store, process, and capture increasing amounts of data each year. Enterprises now take advantage of the Big Data technology to find insight and value from the data they collect. However, customer’s privacy choices and regulatory requirements for using this data are a company’s first priority. Therefore, businesses need to know what regulatory requirements apply to PII and PHI data. Today, NIST, HIPAA and PCI DSS use tokenization to protect customer’s data. Tokenization allows organizations to comply with regulatory requirements and benefit financially from data sharing.
5. Protecting Data
After the data breaches to major banks and businesses, we will see new regulations demanding organization to implement stronger security measures. In the near future companies will be required to de-identify the data they store. Therefore, tokenization will safeguard your data privacy and protect your company from data breaches. Safe Harbour Vaultless, PCI DSS, and HIPAA tokenization allows enterprises to de-identify the data they store and implement stronger data security measures. Therefore, tokenization will protect your organization's data when using cloud storage and also apply to the strict regulatory mandates for protecting customer’s data.