Know All about Tokenization And Data Security

How would it be if in the game of chess, you are asked to move your real physical self around the board instead of a game piece? Can you imagine travelling in a subway paying in cash instead of using a subway token? You would never dream about walking all around carrying all of the money with you. People prefer carrying pointers or “tokens” that have reference to your money like credit cards, debit cards, checks etc. While our money remains safely stored in the secure bank vaults unless we give somebody the permission to use it. Tokens work exactly in the same way.

In today’s world, the concept of a token usually refers to the act of transforming something simple and convenient for something that is cumbersome and complicated. In the world of payments, tokens have traditionally been used to enhance information security. A payment gateway firm Shift4 first introduced the term “tokenization” in the late 2005. It was a better way to protect Payment Card Information (PCI) data. Firms very recently extended the scope to include other types of business data such as health care and government related issues.

Tokenization is a system where you substitute the real payment card data with a proxy set of identifying information. This is done so that merchants do not have to handle the sensitive and regulated data and also to prevent it from being insecure and more exposed than necessary. Bank accounts, medical records, criminal records, and various other types of personally identifiable information can be safeguarded with the help of this. It is the means of protecting sensitive cardholder PII in order to comply with industry standards and government regulations.

Tokenization vs encryption

It is better than encryption. This is because of the simplicity of this method over encryption. It does not require complex key management unlike encryption. But its major advantage lies somewhere else. In this, the original file does not contain any sort of sensitive data so it cannot be decrypted for the sensitive data is simply not present there. Many companies have already recognized this strategy as a better way to protect the sensitive data. And also it is being offered by the firms that include HP, IBM, mcafee, PGP, Dell, and Symantec. This system has no doubt shown better performance over the years. It has better storage requirements and better transparency than many other security methods.

End to end encryption, better known as data field encryption, is a means of continuously protecting the confidentiality and integrity of transmitted data by encrypting it at the origin then decrypting it at its destination. The encrypted data travels securely through public networks and other such vulnerable channels to its recipient where it is decrypted. VPN or the virtual private network uses end to end encryption.

Which approach best fits into an organizations security architecture?

Pros of tokenization

It is much more preferable for smaller companies. It is easier to establish and maintain than encryption. The data is not stored or sent in its original form. This approach of tokenization has become very popular as it is an ideal way to increase security of credit card and e-commerce transactions while minimizing the cost and complexity of industrial regulations and standards especially the Payment Card Data Security Standard (PCI).

Point To Point Encryption And Data Security

Encryption is the transformation of information into a form better known as a cipher text which is not easily understood by the unauthorized people. And the process of converting this encrypted data back into its earlier form is known as decryption. This is done so that it can be understood.

The use of encryption and decryption was prevalent for ages. To decipher the information of an encrypted signal easily you need the correct decryption key. This key serves as an algorithm that would undo the work of the encryption algorithm. A computer can be utilized in an attempt to decipher the cipher. The encryption algorithm being more complicated, it becomes even more difficult to eavesdrop on the communication without having any access to the key.

The design of POINT TO POINT ENCRYPTION (p2p encryption) is such that it can minimize the scope of PCI DSS and safeguard the cardholder details all throughout the procedure of the process of payment. Point to point encryption, also known as E2E encryption safeguards the information as soon as it is gathered from the swipe of a credit card unless the settlement of payment is complete.

End to end encryption provides proper protection and security for payment of electronic data. It minimizes the PCI DSS scope compliance. It protects card holder data from the swipe throughout processing till settlement. It reduces the risk of data being compromised. It reduces the liability for non compliance. It easily integrates with the existing infrastructure and even across different locations. This is no doubt an effective solution that includes features like high performance encryption and also advanced key handling. This solution has certain capabilities. These indulge in encryption key handling, format preserving encryption (FPE), secure hardware based encryption and powerful tools for encryption.

The solution for key handling permits change in configuration. It is driven by policy. It indulges in an automatic system for key handling which helps in safe encryption of data and decrypting the same by the authorized parties. The encrypted card holder data is maintained in similar format as the one in which information is stored currently on a card for payment.fpe enables attachment to the restricted space and also the format boundations of the payment systems. Thus, they minimize the changes in applications and hence make the solution really easy and easy to adopt. Safe and responsive computerized device based encryption and key handling mechanisms have been formulated to fulfill and surpass PCI’s p2pe hardware encryption standard. Our management system is not that difficult to operate. It provides a configuration that is centralized, robust reports and management of events.

POINT TO POINT ENCRYPTION solution provider has different responsibilities. There has to be validated encryption and decryption devices. A safe and secure device management and encryption and decryption operations is required. The various applications available and keys must be managed in a secure way. Monitoring of controls should be maintained in a proper way. There is a high chance of its availability for uninterrupted service.

The Challenge Of Point To Point Encryption

Are data security breaches making you restless? Point to point encryption is one of the most popular methods of thwarting credit card fraud. Credit card fraud costs the payment industry billions per year. Magnetic stripe card technology is still widely prevalent in the United States today. These methods cannot prevent fraud using lost or stolen cards. But, they prevent criminals from accessing the card data at the point of sale. Protecting data at the point of capture can have the greatest impact in terms of reducing the security breaches.

Addressing fraud

P2PE has proved to be the most logical route to address fraud. No doubt, they help meet the merchants’ security needs. Point to point encryption, better known as p2pe is sometimes referred to as e2ee.It encrypts card data from the entry point of a merchant’s point of sale device to a point of secure decryption outside the merchant’s environment. It transmits the data to a payment processor. The sole purpose of P2PE and E2EE is to address the risk of unauthorized and illegal interception associated with the card holder data in motion during the time of transmission from the POs terminal to the payment processor.

Protection of sensitive information

Encryption which is a means of concealing sensitive information has been utilized in various civilizations over the centuries. Credit card holders, merchants, processors, acquiring banks always tend to protect sensitive information and hence reduce credit card fraud combination of education programs, compliance mandates and hardened systems can work together in this direction to provide the best protection possible.

Encryption of the credit card data is a viable tool which would render the data useless in the event where fraudsters gain access to the information. Point to point encryption is the ideal state in which the credit card numbers and all the other sensitive information is encrypted right from the point of entry (card swipe) to the other end (the issuing bank).

Public key infrastructure

Encryption at the software level can be achieved using a public key infrastructure (PKI). But it does not provide the same level of encryption accomplished by the hardware in compliance with TRSM. It provides a tough layer of security for the payment applications. When there is no encryption available in the merchant’s card swipe wedge attached to a POS device, the software solution comes in handy. It provides the necessary added protection provided that a public key scheme is deployed. The major advantage of this solution is that the encryption occurs at a software level and thus there is no need to upgrade the physical hardware as long as the POS device is payment card industry (PCI) compliant.

Tamper Resistant Security Module

Encryption of the customers’ card data at the hardware level is done within a Tamper Resistant Security Module (TRSM), better known as Secure Reading and Exchange of Data module (SRED) within the POS device near the magnetic stripe read head. It provides a safe environment within the ATM or Payment Device. It is one of the most effective tools in card fraud management.

Should one encryption method be adopted over another? Point to point encryption solution provider has various responsibilities. Encryption and decryption devices should be validated. There has to be secure device management, encryption and decryption operations. The management of cryptographic keys and applications must be safe. There should be appropriate monitoring of controls.

Know All about Tokenization And Data Security

How would it be if in the game of chess, you are asked to move your real physical self around the board instead of a game piece? Can you imagine travelling in a subway paying in cash instead of using a subway token? You would never dream about walking all around carrying all of the money with you. People prefer carrying pointers or “tokens” that have reference to your money like credit cards, debit cards, checks etc. While our money remains safely stored in the secure bank vaults unless we give somebody the permission to use it. Tokens work exactly in the same way.

In today’s world, the concept of a token usually refers to the act of transforming something simple and convenient for something that is cumbersome and complicated. In the world of payments, tokens have traditionally been used to enhance information security. A payment gateway firm Shift4 first introduced the term “tokenization” in the late 2005. It was a better way to protect Payment Card Information (PCI) data. Firms very recently extended the scope to include other types of business data such as health care and government related issues.

Tokenization is a system where you substitute the real payment card data with a proxy set of identifying information. This is done so that merchants do not have to handle the sensitive and regulated data and also to prevent it from being insecure and more exposed than necessary. Bank accounts, medical records, criminal records, and various other types of personally identifiable information can be safeguarded with the help of this. It is the means of protecting sensitive cardholder PII in order to comply with industry standards and government regulations.

Tokenization vs encryption

It is better than encryption. This is because of the simplicity of this method over encryption. It does not require complex key management unlike encryption. But its major advantage lies somewhere else. In this, the original file does not contain any sort of sensitive data so it cannot be decrypted for the sensitive data is simply not present there. Many companies have already recognized this strategy as a better way to protect the sensitive data. And also it is being offered by the firms that include HP, IBM, mcafee, PGP, Dell, and Symantec. This system has no doubt shown better performance over the years. It has better storage requirements and better transparency than many other security methods.

End to end encryption, better known as data field encryption, is a means of continuously protecting the confidentiality and integrity of transmitted data by encrypting it at the origin then decrypting it at its destination. The encrypted data travels securely through public networks and other such vulnerable channels to its recipient where it is decrypted. VPN or the virtual private network uses end to end encryption.

Which approach best fits into an organizations security architecture?

Pros of tokenization

It is much more preferable for smaller companies. It is easier to establish and maintain than encryption. The data is not stored or sent in its original form. This approach of tokenization has become very popular as it is an ideal way to increase security of credit card and e-commerce transactions while minimizing the cost and complexity of industrial regulations and standards especially the Payment Card Data Security Standard (PCI).