Encryption if you have any experience with data security, youre likely already familiar with encryption. An endtoend connection may indirectly links system 1 the point of payment card acceptance to system 2 the point of payment processing but with multiple systems in between and this increases hacker opportunity. Tokenization and encryption are often mentioned together as means to secure information when its being transmitted on the internet or stored at rest. Jan 08, 2019 a note about using encryption to secure sensitive data at the field level within ibm i applications.
Depending on the use case, an organization may use encryption, tokenization, or a. When the data is in a transmission state or in rest mode, both these two. Tokenize sensitive data with solutions from these vendors. That way, they have emv to prevent counterfeit card. As well as ensuring unsecured payment data never enters your organizations systems and safeguarding against cybersecurity threats, tokenization helps with pci compliance and reduces the scope of pcidss audits, saving cost and time. What is the difference between encryption and tokenization. Point to point encryption p2pe encrypts data from point a, when a card is swiped or dipped in a terminal, until it reaches point b, the. It is often used to prevent credit card fraud and ultimately to prevent hackers from reaching our sensitive credit card information or more and in. Basically, tokenization adds an extra level of security to sensitive credit card data.
Townsend security despite an orgnizations best efforts, their data will get out. This is an important distinction from encryption because changes in data length and type can render information unreadable in intermediate systems such as databases. With all the excitement about applepay, big systemic problems are starting to surface on the retailer side. Data encryption is the most common method of keeping sensitive information secure, and thousands of businesses around the globe use encryption to protect credit card data chd or pci, personally identifiable information pii, financial account numbers, and more. Pointtopoint encryption p2pe solutions thales esecurity. Data encryption is the most common method of keeping sensitive information secure, and thousands of businesses around the globe use encryption to protect credit card data chd or pci, personally identifiable information. Tokenization and encryption can be used simultaneously, which means that you dont have to choose between one or the other. Before leaving one computer or card reader and embarking on a trip across a network, card data is obscured using a coding system that replaces each number, letter or space for a different one using a sophisticated encryption algorithm. What is tokenization vs encryption benefits uses cases. Tokenization is a nonmathematical approach that replaces sensitive data with nonsensitive substitutes without altering the type or length of data. With this in mind, im still baffled as to why the 2011 tokenization guidance document proceeded to rename encryption and hashing as valid forms of tokens. It is often used to prevent credit card fraud and ultimately to prevent hackers from reaching our sensitive credit card information or more and in this tokenization guide, you will learn more details about tokenization and the difference between tokenization and encryption.
Point to point encryption p2pe, a type of encryption technology, protects sensitive card data in transit until it reaches a safe decryption environment. In addition to helping to meet your organizations own data security policies, they can both help satisfy regulatory requirements such as those under pci dss, hipaahitech, glba, itar, and the eu gdpr. The only way to access the sensitive information is to unlock it with a key or password. Tokenization is a hot topic right now as industry players look at developing an interoperable global standard. Tokenization to substitute payment information with onetime ids.
Products and services from thales esecurity can not only help you implement measures to become pci dss compliant effectively and efficiently, but they can also play an essential role in a point to point encryption p2pe strategy to reduce the scope and therefore the cost of compliance. Tokenization and p2pe are very different however, and solve two very different purposes within a merchant environment. The use of strong encryption keys makes it impossible, from a practical point of view, to guess the key and recover the data. Tokenization vs encryption tokenex make pci compliance. Nov 07, 2014 with all the excitement about applepay, big systemic problems are starting to surface on the retailer side. Tokenization and encryption are two ways to secure information when. If hackers do somehow manage to get their hands on a token, they wont be able to do anything since its meaningless by itself. Find more information about different ways to protect information in the lesson titled tokenization vs. What is the difference between pointtopoint encryption and. A note about using encryption to secure sensitive data at the field level within ibm i applications. In most instances, encryption is used to secure the real data in the vault. Tokenization, by design, doesnt rely on any algorithms or encryption keys.
Tokenization is often confused with pointtopoint encryption p2pe, as both solutions involve oncesensitive data being converted into nonsensitive data that is useless to hackers. Simply stated, both encryption and tokenization would have not prevented the breaches that occurred at these merchants, but would have stopped the monetization of the card data. Encryption and tokenization are both regularly used today to protect data stored in cloud services or applications. Conference to share changes in the industry and discuss new product features. Encryption is reversible called decrypting whereas tokenization is not. Before leaving one computer or card reader and embarking on a trip across a. The purpose of tokenization is to swap out sensitive datatypically payment card or bank account numberswith a randomized number in the same. What is the difference between pointtopoint encryption and endto. Tokenization vs encryption explains how they differ from one another in. On the other hand, pointtopoint encryption, or p2pe, is a subset of e2ee.
This unique nature of tokenization makes it one of the best practices to implement as part of your payment security efforts. Tokenization is substitutionbased, and encryption is mathematically based. Software solutions contain encryption, application, decryption and key management. Tokenization vs encryption tokenex make pci compliance easier. Tokenization and encryption are two ways for securing information both while being transmitted and while at rest. Encryption protects data by obscuring it with the use of an approved encryption algorithm such as aes and a secret key. With p2pe, data is encrypted on a card swipe terminal or pin entry. These tools are cheap, and combined with a simple software program can be easily utilized. Tokenization also has other benefits, particularly when combined with pcivalidated pointtopoint encryption. In the event of a breach, encrypted data is useless to a hacker without the key.
Why tokenization is better than point to point encryption. A lot has been written recently about securing data in the. Data encryption is the most common method of keeping sensitive information secure. With e2e encryption a company encrypts the data at the entry point the point of sale pos, the ecommerce payment software and the call center.
Tokenization is a superbuzzy payments word at the moment, especially because of the increased attention on mobile payments apps like apple pay. When the data is in a transmission state or in rest mode, both these two technologies are capable of keeping information secure on the internet. With this in mind, im still baffled as to why the 2011 tokenization guidance document proceeded to rename. Payment solutions that offer similar encryption but do not meet the p2pe standard are referred to as end to end encryption e2ee solutions. Experts weigh in pros and cons of the emerging technologies eyed to improve data security linda mcglasson october 19, 2009. Comparison of terminology of pointtopoint versus endtoend encryption. Multiple endpoints need to tokenize and detokenize, so they need a single point of control that owns the token database. Unlike encryption, tokenization uses a databasetoken vault, where the relationship between the sensitive value and the token is stored. This is an important distinction from encryption because.
I format preserving encryption security of different protection methods i modern data tokenization i aes cbc encryption standard i basic data tokenization high low security level 11 12. Tokenization vs encryption software business growth. A solution is a complete set of hardware, software, gateway, decryption, device. An exit point exists called fieldproc, which when utilized, makes it possible in most cases. A lot has been written recently about securing data in the cloud, and the merits of the two methodologies are constantly being debated. Therefore, tokenization and encryption are used in the internet world to secure information on the web. Tokenization adds an extra layer of security to sensitive data. Using builtin encryption capabilities of operating systems or third party. Encryption prevents unauthorized users from reading and modifying that file without the key.
What is tokenization vs encryption benefits uses cases explained. In contrast to tokenization, encryption disguises sensitive card data by turning it into unreadable code. A lot has been written recently about securing data. A file is encrypted when it will be needed in the future. Apr 14, 2020 for databasebacked tokenization, the reason is obvious. Apr 09, 2018 the only way to access the sensitive information is to unlock it with a key or password. Products and services from thales esecurity can not only help you implement measures to become pci dss compliant effectively and efficiently, but.
Founded in 2009, tokenex is a software organization based in the united states that offers a piece of software called cloudbased tokenization. May 08, 20 understanding the differences between tokenization and encryption is easier said than done, but knowing which technology to use can make a big difference when it comes to security and compliance. Tokenization vs encryption although the internet has been beneficial in the way and manner data and classified document are being transmitted, the risk posed by cybercriminals in intercepting such data cannot be overemphasized. Pointtopoint encryption p2pe is a standard established by the pci security standards. It is often used to prevent credit card fraud and ultimately to prevent hackers from reaching our sensitive credit card information. Tokenization may 23, 2017 lauren richard whether your business is in retail, healthcare, education, or ecommerce, its essential to maintain compliance with payment card. When a card is used through a p2pe solution, the numbers are immediately encrypted at the first point of interaction. Apr 04, 2018 for example, merchants who accept emv payments should also have point to point encryption p2pe and tokenization solutions. Once encrypted, the original value can only be recovered if you have the secret key. If integrated with a point to point encryption validated provider, the software provider is. That database also needs care and feeding, as well as hopefully some sort of realtime replication, to avoid lost tokens should a hardware failure occur. Apr 10, 2018 therefore, tokenization and encryption are used in the internet world to secure information on the web. Encryption prevents unauthorized users from reading and modifying that file.
Tokenization may 23, 2017 lauren richard whether your business is in retail, healthcare, education, or ecommerce, its essential to maintain compliance with payment card industry data security standards pcidss and protect sensitive credit card information from data breaches. For example, merchants who accept emv payments should also have pointtopoint encryption p2pe and tokenization solutions. That way, they have emv to prevent counterfeit card fraud, p2pe to encrypt data at the terminal, and tokenization to replace the data stored after the transaction. Tokenization transforming card data into a surrogate value. The other version is pointtopoint encryption, in which the data is decrypted at each stop in the payments cycle merchant to processor, processor to issuer, issuer to merchant. Point to point encryption p2pe encrypts data from point a, when a card is swiped or dipped in a terminal, until it reaches point b, the providers secure decryption environment. Point to point encryption p2pe is a standard established by the pci security standards council. Both are generally strong, meaning that it is difficult to retrieve the original information from the result. For databasebacked tokenization, the reason is obvious. Tokenization vs encryption vs masking linkedin slideshare. Pointto point encryption, also known as p2pe, is a payments.
Cloudbased tokenization features training via documentation, live online, and in person sessions. Understanding the differences between tokenization and encryption is easier said than done, but knowing which technology to use can make a big difference when it comes to security and. Tokenization is the process of turning sensitive data into nonsensitive data called tokens that can be used in a database or internal system without bringing it into scope. But they are not the same thing and are not interchangeable. Over the last few months, the pci knowledge base has been doing research on the impact of pci compliance on fraud and fraud management for the merchant risk council. Hardware encryption encryption in hardware from the point of interaction either dip, swipe, tap or keyed. An exit point exists called fieldproc, which when utilized, makes it possible in most cases to encrypt field data without needing to make code changes to those applications, saving a lot of time and expense. Depending on the use case, an organization may use encryption, tokenization, or a combination of both to secure different types of data and meet different regularly requirements. Social security numbers, passport numbers, and drivers license numbers as unique identifiers. The relationship between pci, encryption and tokenization.
1328 142 351 1200 1378 1282 419 1380 428 1348 766 1461 521 163 1305 1294 1236 1294 367 128 666 1308 530 467 321 844 165 1030