What is "tokenization"

n. 1 The act or process of tokenize. 2 Something tokenized.

Tokenization, when applied to data security, is the process of substituting a sensitive data element with a non-sensitive equivalent, referred to as a token, that has no extrinsic or exploitable meaning or value. The token is a reference (i.e. identifier) that maps back to the sensitive data through a tokenization system. The mapping from original data to a token uses methods which render tokens infeasible to reverse in the absence of the tokenization system, for example using tokens created from random numbers. The tokenization system must be secured and validated using security best practices applicable to sensitive data protection, secure storage, audit, authentication and authorization. The tokenization system provides data processing applications with the authority and interfaces to request tokens, or detokenize back to sensitive data.

The security and risk reduction benefits of tokenization require that the tokenization system is logically isolated and segmented from data processing systems and applications that previously processed or stored sensitive data replaced by tokens. Only the tokenization system can tokenize data to create tokens, or detokenize back to redeem sensitive data under strict security controls. The token generation method must be proven to have the property that there is no feasible means through direct attack, cryptanalysis, side channel analysis, token mapping table exposure or brute force techniques to reverse tokens back to live data.

When tokens replace live data in systems, the result is minimized exposure of sensitive data to those applications, stores, people and processes, reducing risk of compromise or accidental exposure and unauthorized access to sensitive data. Applications can operate using tokens instead of live data, with the exception of a small number of trusted applications explicitly permitted to detokenize when strictly necessary for an approved business purpose. Tokenization systems may be operated in-house within a secure isolated segment of the data center, or as a service from a secure service provider.

Tokenization may be used to safeguard sensitive data involving, for example, bank accounts, financial statements, medical records, criminal records, driver's licenses, loan applications, stock trades, voter registrations, and other types of personally identifiable information (PII). Tokenization is often used in credit card processing. The PCI Council defines tokenization as "a process by which the primary account number (PAN) is replaced with a surrogate value called a token. De-tokenization is the reverse process of redeeming a token for its associated PAN value. The security of an individual token relies predominantly on the infeasibility of determining the original PAN knowing only the surrogate value". The choice of tokenization as an alternative to other techniques such as encryption will depend on varying regulatory requirements, interpretation, and acceptance by respective auditing or assessment entities. This is in addition to any technical, architectural or operational constraint that tokenization imposes in practical use.

In lexical analysis, tokenization is the process of breaking a stream of text up into words, phrases, symbols, or other meaningful elements called tokens. The list of tokens becomes input for further processing such as parsing or text mining. Tokenization is useful both in linguistics (where it is a form of text segmentation), and in computer science, where it forms part of lexical analysis.

Tokenization may refer to:

• Tokenization (lexical analysis) in language processing
• Tokenization (data security) in the field of data security
• Word segmentation
• Tokenism of minorities.