What is the difference between tokenization and encryption?

What is the difference between tokenization and encryption?

Tokenization replaces sensitive data with unique identifiers, while encryption transforms data into a secure format.

Can you give me an example of when to use tokenization?

Tokenization is often used in payment processing to protect credit card information during transactions.

And when should I use encryption instead?

Encryption is ideal for protecting data at rest or in transit, such as files stored on a server or emails.

Are there any security risks associated with either method?

Yes, both methods have risks; tokenization can expose tokens if not managed properly, while encryption can be compromised if keys are lost.