Which technique involves replacing sensitive data with non-sensitive tokens?

• A. Data masking
• B. Encryption
• C. Tokenization
• D. Steganography

Answer: (C)

Tokenization replaces sensitive data with non-sensitive tokens. The real data is stored securely in a token vault, and what’s used in its place is a token that has no meaning on its own. When the original value is needed, the system looks up the token in the vault to retrieve it. This keeps the actual data out of everyday systems, reducing exposure and PCI scope, while allowing applications to operate with a usable placeholder.

Data masking obfuscates data to prevent disclosure but often isn’t reversible or intended for retrieval of the exact original value, making it different from tokenization. Encryption converts data into ciphertext that can be decrypted with a key to recover the original value, which is a reversible process tied to key management. Steganography hides messages inside other media to conceal the existence of the data, which isn’t about substituting values for processing.