ISC Data Protection · Updated November 2026

Tokenization, Encryption, Masking: Are They Protecting Data the Same Way?

All three can protect sensitive data, but they do it in fundamentally different ways.

Encryption

Uses a cryptographic algorithm and key to transform plaintext into ciphertext that authorized users can decrypt.

Replaces sensitive information with a substitute token, with any mapping to the original value kept separately and securely.

Obscures or replaces data so users or systems see a modified version, commonly in testing or limited-access displays.

A card number can be encrypted, replaced with a token, or displayed as masked digits. Those are not the same control.

Encryption transforms data cryptographically. Tokenization substitutes a reference. Masking hides or alters displayed data.

Not necessarily.

No.

Yes.