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SimplyCPA
Glossary/Tokenization

What is Tokenization?

In short

Tokenization replaces sensitive data, such as a card number, with a random token that has no value if stolen. The link between token and original value is kept in a secure token vault.

Key takeaways

  • Unlike encryption, a token can't be reversed mathematically, only looked up in the vault.
  • It shrinks the number of systems that hold sensitive data, reducing compliance scope for card data.
  • Masking, by contrast, hides part of the data on display, such as all but the last four digits.

Where it's tested

ISC: Privacy & Regulatory Frameworks — study notes, a five-minute revision sheet and practice questions.

Practise: 3 questions

Question 1 of 3 · 0 answered

Which framework is specifically designed for the governance and management of enterprise IT?

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