What process involves replacing sensitive data with unique identification symbols?

Tokenization is the process of replacing sensitive data with unique identification symbols, known as tokens, which retain essential information about the data without compromising its security. In tokenization, the actual sensitive information, such as credit card numbers or personal identification details, is replaced with a token that has no intrinsic value. This ensures that even if the token is exposed, it cannot be used to retrieve the original sensitive data without a secure mapping back to the original values.

This method enhances data security by minimizing the amount of sensitive data that needs to be stored and protects it during transactions or processing. Tokenization is especially beneficial in environments that require compliance with data protection regulations, as it reduces the risk of data breaches and unauthorized access to sensitive information.

In contrast to other options, such as encryption—which transforms data into an unreadable format using keys—tokenization allows for a non-sensitive substitute during transactions, which simplifies many aspects of data management while ensuring security against data leaks.