What does Data Masking accomplish in terms of sensitive information?

What does Data Masking accomplish in terms of sensitive information?

• A. It permanently deletes sensitive data
• B. It encrypts all customer information
• C. It replaces sensitive values with placeholders
• D. It compiles data for reporting purposes

Answer: (C)

Data masking effectively replaces sensitive values within a database with placeholders or non-sensitive equivalents. This technique ensures that while the structure of the data is maintained for analysis or development purposes, the actual sensitive information—such as personally identifiable information or financial data—remains protected. This approach is particularly useful in environments where data needs to be shared with external parties, such as during software testing or training, while still ensuring compliance with data protection regulations and standards. By substituting real data with fictional or scrambled data, organizations can mitigate the risk of data breaches while allowing for functionality.

Data masking effectively replaces sensitive values within a database with placeholders or non-sensitive equivalents. This technique ensures that while the structure of the data is maintained for analysis or development purposes, the actual sensitive information—such as personally identifiable information or financial data—remains protected. This approach is particularly useful in environments where data needs to be shared with external parties, such as during software testing or training, while still ensuring compliance with data protection regulations and standards. By substituting real data with fictional or scrambled data, organizations can mitigate the risk of data breaches while allowing for functionality.