Data tokenization is a process of computer security which consists of replacing sensitive information — such as card numbers, addresses or personal data — with a unique and random identifier (Token). This token maintains the same format as the original data, but it has no functional value outside the system that generated itA. Unlike encryption, tokens They cannot be reversed mathematically, providing an additional layer of protection against attacks or breaches.

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How does data tokenization work?

1. A system receives sensitive data, such as a credit card number.
2. Instead of storing the original data, a Token unique alphanumeric.
3. This token is stored and used in operating systems, while the original data is securely stored in a central repository (often called Token vault).
4. Only authorized systems can reconnect a token with its real data, through highly controlled processes.

So, even if someone accessed the system and obtained the tokens, I wouldn't have useful access to real information, since there is no practical way to reverse them.

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Why is tokenization used?

• Protecting sensitive data: It prevents sensitive information from being exposed in the event of a cyberattack or internal breach.

• Reducing the risk of fraud: Tokens are not useful outside the system where they are generated, so they cannot be exploited by cybercriminals.

• Legal Compliance: Helps organizations comply with global privacy and security regulations

• Increased customer trust: Demonstrating that information is protected builds reputation and loyalty.

Applying tokenization in your company not only reinforces security, but also provides very important operational and legal advantages:

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Reducing security risks

By not storing real data, companies reduce significantly its attack surface. Even if unauthorized access occurs, tokens have no value on their own.

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Regulatory compliance and regulations

Tokenization makes it easier to comply with data protection standards such as:

• GDPR (European Union)
• CCPA (California)
• HIPAA (health in the U.S.)
• PCI DSS (card payments)

In addition, it demonstrates a proactive commitment to privacy, which can make a difference in tenders, audits and certification processes.