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Tokenization is a process used in data security that transforms valuable data into a random assortment of characters known as a token. In a data breach, these tokens have no value to cybercriminals. Businesses can access this information after it is transformed into a token through a tokenization system. These systems can also detokenize data, so it is once again accessible. However, specific authorizations are required to do so, which ensures the data remains safe.

What Small and Midsize Businesses Need to Know About Tokenization

SMBs that frequently work with sensitive data prefer tokenization. Businesses with access to documents like driver’s licenses, social security numbers, financial statements, or medical records must protect this information from data and security breaches. Tokenization offers SMBs a simple and effective method for ensuring that sensitive information remains secure.

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