Pseudonymization vs Anonymization: Key Differences, Benefits, & Examples
What is Pseudonymization?
Pseudonymization is a process that replaces identifying information with a pseudonym, a random value (alphabetical, numerical, or alpha-numerical) that does not reveal the subject’s identity. While pseudonymized data cannot be used to identify a person without additional information, it is still considered PII under GDPR regulations.
Benefits of data pseudonymization
Enhanced Data Privacy
Regulatory Compliance
Secure Data Sharing
Improved Data Analytics
Business Continuity
What is Anonymization?
Anonymization is a process that removes all identifying information from data, making it impossible to identify the data subject. Unlike pseudonymization, anonymized data cannot be used for any purpose that requires identifying information. Once anonymized, data is no longer considered PII and is exempt from GDPR.
Common Methods of Anonymization
Data Aggregation
Generalization
Data Masking/Redaction
Adding Noise
Data Swapping
Differential Privacy
GDPR Requirements for Pseudonymization & Anonymization
Anonymization and pseudonymization are both essential data protection strategies under GDPR that can assist companies in safeguarding personal data, wherever possible. Nevertheless, they are not a panacea.
Pseudonymization is a recognized de-identification technique that has received increased attention since the implementation of GDPR, where it’s recognized as a mechanism for both security and data protection by design.
How Tokenization Helps in Pseudonymization & Anonymization
Tokenization involves replacing sensitive data with randomly generated tokens not derived from the original data but linked to it securely. Tokens can be used to reference the original data without revealing sensitive information and are oftentimes secured in a Vault to safeguard the data further, enhancing data masking vs anonymization.
How Protecto’s Intelligent Tokenization Can Help Safeguard Your PII Data
• Enhanced Data Security: Protects against data breaches and un