What is the main purpose of tokenization in data security?

The primary purpose of tokenization in data security is to secure sensitive data by replacing it with non-sensitive tokens that can be used in its stead. This process allows organizations to maintain the usability of their data while significantly reducing the risk associated with storing and processing sensitive information. By substituting sensitive data elements with unique identifiers or tokens, which have no exploitable value if breached, organizations can protect sensitive information from unauthorized access.

Tokenization enables compliance with data protection regulations and standards by minimizing the amount of sensitive data that needs to be handled, stored, or transmitted within systems. When organizations utilize tokenization, it helps mitigate risks of data breaches, as the actual sensitive data is stored securely in a separate location, which is often protected by stringent access controls.

In contrast, creating copies of sensitive data does not enhance security and can increase exposure to risks. Encrypting data for storage is a different process focused on rendering data unreadable without the appropriate decryption keys, and monitoring access to sensitive data relates more to oversight and auditing rather than the direct protection mechanism provided by tokenization.