Consider the following statements regarding Tokenization. Tokenization is the process of replacing sensitive datawith a non-sensitive equivalent. Card-on-file tokenisation (CoFT)is a security measure for users opting for digital payments, replacing the practice of merchants storing card details with specially created tokens. Tokens are random strings of characters that have no meaningful value if breached.How many of the above statements is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?

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Consider the following statements regarding Tokenization.

Tokenization is the process of replacing sensitive datawith a non-sensitive equivalent.
Card-on-file tokenisation (CoFT)is a security measure for users opting for digital payments, replacing the practice of merchants storing card details with specially created tokens.
Tokens are random strings of characters that have no meaningful value if breached.

How many of the above statements is/are correct?

a)
Only one
b)
Only two
c)
All three
d)
None

Correct answer is option 'C'. Can you explain this answer?

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Consider the following statements regarding Tokenization. Tokenization...

The Reserve Bank of India (RBI) has expanded the scope of card-on-file tokenisation (CoFT) to include card issuing banks and institutions directly, moving beyond services provided through merchants.
CoFT is a security measure for users opting for digital payments, replacing the practice of merchants storing card details with specially created tokens.
Tokenization is the process of replacing sensitive data with a non-sensitive equivalent, called a token. Tokens are random strings of characters that have no meaningful value if breached. They serve as a reference to the original data, but cannot be used to guess those values.

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Consider the following statements regarding Tokenization. Tokenization...

Explanation:

The correct answer is option 'C' - all three statements are correct.

Statement 1: Tokenization is the process of replacing sensitive data with a non-sensitive equivalent.

Tokenization is a process that involves substituting sensitive data, such as credit card numbers or personal identification numbers (PINs), with a non-sensitive equivalent called a token. The token is a randomly generated string of characters that has no meaningful value if breached. This process helps to protect sensitive data from unauthorized access and reduces the risk of data breaches.

Statement 2: Card-on-file tokenization (CoFT) is a security measure for users opting for digital payments, replacing the practice of merchants storing card details with specially created tokens.

Card-on-file tokenization (CoFT) is a security measure used in digital payments. It replaces the practice of merchants storing card details with specially created tokens. When a user opts for digital payments and provides their card details, the merchant securely stores the card details in an encrypted format and generates a unique token for that card. This token is then used for future transactions instead of storing the actual card details. By using tokens, the merchant reduces the risk of storing sensitive information and minimizes the chances of the card details being compromised in case of a data breach.

Statement 3: Tokens are random strings of characters that have no meaningful value if breached.

Tokens are randomly generated strings of characters that have no meaningful value if breached. They are created using algorithms and cannot be reverse-engineered to obtain the original sensitive data. Even if a token is intercepted or accessed without authorization, it cannot be used to retrieve the original sensitive data. Tokens are unique to each user or transaction and are used as a reference to retrieve the associated sensitive data from a secure storage system.

Therefore, all three statements are correct. Tokenization is used to replace sensitive data with non-sensitive tokens, card-on-file tokenization is a security measure for digital payments, and tokens are random strings of characters with no meaningful value if breached.

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Consider the following statements regarding Tokenization. Tokenization is the process of replacing sensitive datawith a non-sensitive equivalent. Card-on-file tokenisation (CoFT)is a security measure for users opting for digital payments, replacing the practice of merchants storing card details with specially created tokens. Tokens are random strings of characters that have no meaningful value if breached.How many of the above statements is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?

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