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Data Masking vs. Data Encryption: Choosing the Right Approach for Your Business


It is critically important to protect your data. Luckily, there are a number of methods available to help you secure your most valuable resources. In this article, we focus on two of these techniques: data masking and data encryption. To determine which is the best fit for your business, we first need to review the mechanism each method uses before exploring the specific problems they are designed to solve.

What is Data Masking?

Data masking, also known as data obfuscation, is a security technique that overwrites the original data, modifying some or all of the information with “fake” information. For instance, replacing all but the last 4 digits of a credit card number with asterisks. Masked data is structurally similar to the original data, preserving the format to mimic the original information, while replacing all or a portion of the sensitive details. Oftentimes, it is utilized for PII (Personally Identifiable Information) or commercially sensitive data. Data masking is useful in situations such as software development or testing. It can also be used in a customer setting to obscure most of a piece of information, but leave just enough exposed to be able to confirm information with a customer, for instance. There are two types of data masking to think about: static data masking and dynamic data masking.

Types of Data Masking:

Static data masking

This is the more commonly used form of data masking. Sensitive data is permanently replaced in the database with data that looks similar and realistic, but is not at all related to the original. Static data masking techniques are frequently employed to anonymize sensitive information within backups of production databases or within simulated databases known as “dummy” databases for testing and development.

Dynamic data masking

This form of data masking takes a real-time approach. Data is stored in its original form in the database but may be masked for the viewer depending on the security level of the user. A bank will have your full bank account number stored in the database, but when displayed on a screen or a bank statement, only the last 4 digits are visible. Meanwhile, a banking representative may have authority to view the whole number. Dynamic data masking allows IT departments to secure data in real-time, with the original data never leaving the production database. This helps make it less susceptible to threats.

Applications of Data Masking

Data masking serves as a continuous data protection method throughout all stages, whether the data is at rest, in transit, or in use. It is particularly effective for data with a uniform format. Commonly utilized for credit and debit cards, bank accounts, social security numbers, medical records, and personal identification data, data masking offers no traceable connections to the original sensitive data, rendering it worthless to cybercriminals. It is not possible to reverse engineer the original value because the masked data is unrelated to the original sensitive information.

What is Data Encryption?

When discussing data protection, it is more than likely that data encryption will come up as it is a common form of protecting sensitive data. Data encryption transforms understandable plaintext into unreadable random characters, also referred to as ciphertext. The original data remains within the database and can be decrypted only with a key. Policies can be set to determine who is authorized to see or use the encrypted information, and who is blocked from access. This form of data security is great for unstructured or variable data at rest, or data that is being transferred between networks, though it is valuable with highly structured data as well. When storing data, data encryption will protect the original data if the files, database or backups are stolen. A cybercriminal cannot view the sensitive data without the encryption keys which are stored separately from the data.

Types of Encryption:

Symmetric encryption:

Symmetric encryption relies on using the same key to both encrypt and decrypt. The risk with this form of encryption is interception of the key by an unauthorized user. This form of encryption is typically faster and handles a large amount of data efficiently.

Asymmetric encryption:

This type of encryption employs a pair of keys – a public one and a private one that are interconnected. The private key is kept confidential by the data holders, whereas the public key is disseminated among permitted users. This form of encryption is utilized for smaller amounts of data and is more complex to implement. However, it is oftentimes considered more secure as even if one key is compromised the data remains safe.

For more information about keys and key management check out our article.

Use Cases for Encryption

Overall, data encryption is a very secure method of data protection that protects data from unauthorized access. While it is technically reversible, advanced encryption methods with strong encryption keys make it nearly impossible to decrypt by unauthorized users.This method is helpful in securing unstructured data that is either stored for longer periods of time or being transferred between networks. It’s also particularly useful for files, videos, and images.

Main Differences Between Data Masking & Data Encryption:

While both data masking and encryption conceal sensitive information and enable organizations to comply with various data privacy standards, the main difference is within their functionality. Data that has been masked is still functional for use in production and testing scenarios by development groups. It can be more difficult to work with data that’s been encrypted, for instance you cannot sort records by birthdate if that is encrypted. Furthermore, unlike encrypted data which can be decrypted using the right key, masked data is irreversible. Encryption, on the other hand, when properly secured with strong passwords and advanced techniques, is imperative when the original data must be accessible for business functions.

Things To Consider When Selecting Between Data Masking & Data Encryption:

Choosing between data masking and data encryption is not a choice between which one is universally better, but rather about selecting the technique which aligns with the specific needs of your business. Here are a few things to consider when making your decision:

Purpose of the data

Your business should consider whether the full original value is needed in order to perform a function. If it is not, then data masking may be suitable. The last 4 digits of a credit card number or a Social Security Number may be all the business needs, for instance, to confirm information with a customer. However, if the full original value is required, then data encryption is the appropriate and secure approach, as encrypted values can be accessed by those with authority to see the information, but are hidden from those that are not.

Sensitivity of your data

If you are handling data that is highly sensitive and requires the utmost protection then encryption is essential. Meanwhile, if you need to maintain data realism but do not need the entire contents of the information, then data masking may be a suitable solution.

Various regulations and compliance requirements

Compliance standards generally have industry specific requirements; encryption is often mandated by regulations for protecting personal data. Data masking helps organizations comply with standards that restrict the use of real data in non-production environments.

Cost & complexity of implementation

Data masking solutions differ significantly in complexity, often requiring less infrastructure, which can translate to more cost-effective implementation. Encryption solutions, on the other hand, may necessitate additional hardware and ongoing maintenance. However, NetLib Security’s Encryptionizer solution offers a cost-effective and straightforward approach to fulfilling your data-at-rest encryption requirements, transparently, with virtually no impact performance!

Best data encryption software from NetLib Security

Safeguarding your information is our utmost priority. We recognize the critical role your data plays in your daily operations and ensure its protection with economical solutions. Our advanced data encryption software secures access for your employees while minimizing vulnerabilities to cyber threats. Additionally, our technology can encrypt legacy system data seamlessly. Contact us today to discover more about SQL transparent data encryption and our comprehensive services designed to safeguard your business data and ensure compliance with standards such as PCI, FIPS 140-2, HIPAA, and other privacy regulations.

About NetLib Security

NetLib Security has spent the past 20+ years developing a powerful, patented solution that starts by setting up a formidable offense for every environment where your data resides: physical, virtual and cloud. Our platform simplifies the process while ensuring high levels of security.

Simplify your data security needs. Encryptionizer is easy to deploy. It is a cost-effective way to proactively and transparently protect your sensitive data that allows you to quickly and confidently meet your security requirements. With budget considerations in mind, we have designed an affordable data security platform that protects, manages, and defends your data, while responding to the ever changing compliance requirements.

Data breaches are expensive. Security does not have to be.

NetLib Security works with government agencies, healthcare organizations, small to large enterprises, financial services, credit card processors, distributors, and resellers to provide a flexible data security solution that meets their evolving needs. To learn more or request a free evaluation visit us at www.netlibsecurity.com.

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