Tokenization is can be described as the process of replacing sensitive data with a token – usually a sequence of letters and/or numbers. Since there is no key to decode the data, there is no need for encryption.
And because IT security is becoming more and more important, businesses are looking for more effective ways to protect their customer data. Along with encryption, tokenization is one of the most popular ways to improve database security – here is how.
Protection from security breaches
Since the data is not held on internal servers, it is protected from cyber-attacks. There is no way to tell what is behind the token – it could be a bank account, social security number, or a driver’s license number. Hackers would have a difficult time to decrypt the token and place a value on the data.
Recommended: Very Good Security offers tokenization solutions for protection against security breaches. The system uses the data and protects without being in actual contact with the data.
Security for healthcare organizations
Healthcare organizations usually store a lot of data on multiple devices running on different operating systems. They need to be compliant with HIPAA regulations and properly protect the patient files by tokenizing both nonpublic personal information and electronically protected health information. Using tokenization, even if there is a breach, there is no way for the hackers to decode the information.
Recommended: Thales is a cybersecurity company that offers healthcare data security tools. The system renders the information so that it is unusable for hackers who manage to break in and provides controls that protect from unauthorized access.
Secure online payments
Online shopping is on the rise and secure payment methods are becoming a priority for retailers. With tokenization, every part of the credit card information can be protected, including the number, name and address, and magnetic swipe data. Not even people inside the organization can see the payment details and because you are not storing anything, there is nothing to be stolen from hackers.
Recommended: TokenEx is a security company that provides solutions for payment tokenization that can be integrated with your system. It offers cloud-based data protection and works with ACH payments.
Compliance with governing standards
Each governing body has a different set of regulations and rules and tokenization can help you meet them. This way you can avoid punishment from the governing body for your industry even if you have a security breach.
Recommended: Geobridge is a security company that specializes in encryption and provides tokens in various formats, including custom options, and randomized tokens for higher security.
Increasing customer retention and trust
Increasing your customers’ trust means more revenue for your business. If you provide good security and protection for your customers, they will keep coming back and feel safe and comfortable with your services.
Recommended: First Data offers payment security thanks to the tokenization program with multiple layers of protection to keep data secured. They even offer a limited warranty against token numbers that have been compromised.
