Tokenization vs. Encryption vs. Aliasing - How to Truly Minimize Compliance Risk #Article

Tokenization vs. Encryption vs. Aliasing - How to Truly Minimize Compliance Risk #Article

Modern technology firms are recognizing the risks that come with using confidential information in its raw form in the light of data protection. Finding a way to capture and use the original data without placing it at risk remains a problem, and organisations need to funnel a great deal of their efforts into The protection that removes confidential data from their customers.
After so many well publicized data breaches entering media headlines in recent years, including a major data breach by Capital One in 2019, security by confidential customer data and minimizing the access to data leakage has been more critical than ever.

Content Table 

Sensitive details and increasing data breach threat

 Figuring Out How to Secure Sensitive Information 

Tokenization vs Encryption: 

What's the Difference?

Happily, a range of creative innovations have made it easy to reduce the vulnerability of data loss-as well as meeting the criteria of compliance with the Payment Card Industry Data Security Standard (DSS).

From encryption and tokenisation through next-generation approaches such as aliasing, digital-age companies have a range of choices when it comes through protecting sensitive user information and using it safely.

Encryption and tokenization are two of those techniques that are most common.

Although both perform important roles in numerous corporate organisations, they each have their own particular drawbacks-and many companies do not even know what fresh and creative solutions are open for them at present.

Protected information and the increasing possibility of leaks of privacy

The hard-to-face fact is that every year, billions of personal records are revealed.

For starters, only in the first half of 2019, there were over 3,800 publicly reported data disclosure incidents that exposed an incredible 4.1 billion documents, according to the 2019 MidYear QuickView Data Breach Survey.

As we begin to uncover data breach patterns, it is clear that large-scale data leaks represent the lion's share of total information security breaches. The same study cites that a mere eight data disclosure cases revealed 3.2 billion of the 4.1 billion leaked documents.

Massive data leaks are increasingly becoming a common phenomenon-with reports popping up daily detailing hacking scandals in large companies that have infected millions.

North American customers shocked by rumors of a cybersecurity debacle in the summer of 2019. The widely publicized 2019 Capital One data hack led to 100 million Americans and 6 million Canadians being subjected to personal data–including hundreds of thousands of Social Security numbers and bank account information.

Likewise, we heard of a whopping $700 million payout in July 2019 that was the result of the Equifax data leak. Today, years after the accident, the 147 million people that this tragedy affected are now having a bite of the cookie.

It just feels like a matter of time before the next resolution of the multi-million-dollar data leak is revealed, and another customer data-handling company will have its foot publicly put to the flames.

Fortunately, a variety of creative solutions to data management have made it easy to capture and preserve sensitive data securely-thus significantly reducing the likelihood of data breaches.

Figuring Out How to Secure Sensitive Information Even though an company doesn't encrypt credit card payments or other types of sensitive data,
every modern enterprise has to spend enough in its cybersecurity protection.

Yet for businesses that capture, store or transmit personal information from account codes to social security numbers, such as cardholder data such as Primary Account Numbers (PANs) or other forms of Personally Identifiable Information (PII), the value of airtight data management schemes is considerably greater.


Besides making consumers feel comfortable buying their goods, firms do have to follow different regulatory standards to ensure compliance with one or more legal mechanisms such as SOC 2, HIPAA and Quadro.

Given the devastating impact that a technology mishap would have for a organization of any scale, along with the numerous regulatory mechanisms that it will conform to, contemporary companies are making considerable investments in data protection programmes.

Companies need to insure that they are safeguarding the confidential data of their customers, from creating their own IT protection departments or recruiting a third party cybersecurity provider.

Companies need to insure that they are safeguarding the confidential data of their customers, from creating their own IT protection departments or recruiting a third party cybersecurity provider.
And, when we're talking about how companies secure sensitive data these days, we generally discuss either tokenization or encryption. Almost any global organisation, as part of its IT security strategies, now depends on tokenization and/or encryption to some extent.

Yet. is the best, and how different are they?

Tokenisation and Encryption: What is the Difference?

Encryption vs. tokenization-the disparity and the equivalent.

The reality is that all of these data management strategies have particular capabilities for similar usage cases, and both are extremely useful for all forms of companies.

Encryption seals confidential data behind a sophisticated mathematical algorithm, by using a common encryption key, this encrypted form is only "unlockable" And at the end point the coding is "solved," the confidential data is exposed in their true format.


In the other hand, tokenization is a means of restricting the handling of sensitive data in plain text by using "tokens" to replace the original data. Such keys are not reversible, and can not be solved unlike cryptography. These nonsensitive tokens must be exposed using the right tokenization method-making tokenization more suitable to organized records, such as credit card numbers, than encryption.

For both tokenization and encryption, however, the original, proprietary data still remains to various degrees on a business ' servers. For example, for tokenisation, there are two stages at which the raw confidential data is at risk: the data vault and the initial capture point.

This ensures the device elements still remain where the initial critical data flows-keeping these devices still within the framework of PCI DSS specifications.

But what if businesses are already able to use confidential data just as they are today, but do not possess it at some point?

Through totally excluding the confidential data from the infrastructure of a organization, those networks will be out of the reach of PCI DSS enforcement.

This is where aliases from the data come into the picture.

Descoping Entirely with VGS Data

 Aliasing While helpful with data protection, both encryption and tokenization hold in the hands of original, confidential data. Through aliasing, this same data can be processed, stored and transmitted exactly as though it were in its original form, but without owning it in the first place.

Through partnering with a third-party data management provider who performs data aliasing, you can take advantage of confidential data while maintaining the systems secure-withdrawing certain systems completely from the realm of PCI DSS compliance.

As a trustworthy data custodian, VGS serves companies who optimize their data management tools 100 per cent of data collection and vaulting. Through using VGS' Zero Data strategy, businesses totally exclude their applications from the domain of PCI DSS enforcement–removing all enforcement threats and reducing the chances of data leakage entirely.

Using its revolutionary Zero Data aliasing tool, VGS takes care of all compilation, storing and distribution of sensitive data on behalf of your company, so that your systems are absolutely excluded from enforcement requirements.

In fact, as businesses adopt VGS technologies to manage their confidential data, they immediately inherit the best-in-class protection stance of VGS, which helps them to easily monitor their certifications such as PCI, SOC2 and others.

With data protection as one thing less to think about, companies are encouraged to devote their time and money on what really matters: their core businesses continue to expand.



                      This article was originally published in Very GoodSecurity.


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