Tokenization

What is tokenization?

Tokenization is a security procedure in which sensitive data is replaced by tokens. A token is a placeholder that has no meaning outside a specific system and therefore offers no benefit to attackers in the event of data loss or theft. This method is often used to protect credit card data, account information or personal data.

Advantages and applications

Tokenization reduces the risk of data misuse, as tokens do not contain any sensitive information. It is primarily used in payment transactions, e-commerce systems and cloud applications. Companies benefit from better compliance and reduced data security management effort, as sensitive information is not stored directly.