Tokenization is the buzzword that retailers all over the world are talking about. The reason why is retailers are starting to learn that when you tokenize Payment Card Information (PCI), your PCI compliance/scope are significantly reduced saving you to the hundreds of thousands of dollars in reduced audit costs and other related compliance fees. But, before we get ahead of ourselves diving down the rabbit hole of tokenization, the elephant in the room is NFP’s store PCI and lots of it. Why? Your risk goes through the roof in the event of a data breach. Housing toxic PCI is a ticking time bomb and you are never prepared when you do get breached. With tokenization, you can’t steal what’s not there.
Tokenization & Fraud Authentication Need Each Other
Tokenization removes that toxic PCI from your environment at the earliest point of transaction passing off a token to you and vaulting the PCI in a secure cloud environment. True tokenization also works in conjunction with 3rd party fraud providers to lower your current fraud risk points. Layering your security solution maximizes your data security, while minimizing and even eliminating risk points. It is time to look at your data security strategy with a different perspective. A perspective where a layered data security solution allows you more freedom and flexibility with payment acceptance than you ever thought possible; a chance to rest easy at night knowing that your customer’s data won’t be exposed. Layered data security needs both tokenization and fraud authentication to be able to defend against the most cunning fraud schemes and data breaches the world has ever witnessed.
Would Tokenization Have Stopped the Target Breach?
Yes and No. The Target hack was so ingenious, because they penetrated the network through the HVAC network, so tokenization would not have prevented that breach. However, if Target had tokenized their data, then the cyber thieves would have no sensitive data to steal. Hackers continue to change the way they steal data, so fraud prevention at the point of transaction significantly reduces chargebacks, card not present fraud, and any other number of mind numbing headaches that come with getting hacked.
Why Tokenization works
Tokenization works like a proxy in the payment cycle and immediately removes the PCI, while working in conjunction with fraud providers, marketing analytics, or any other 3rd party vendors and all of these processes are negligible to the human eye, while falling into PCI latency guidelines. You get access to all of the customer data you desire, while protecting each and every one of your customer’s sensitive data sets. Tokenization is not a new technology, but retailers, banks, credit card companies, and anyone else who stores toxic data are flocking to implement tokenization solutions, because it works.