What can be a challenge with tokenization in a business setting?

In a business setting, tokenization can indeed introduce challenges related to the complexity of vendor management. Tokenization involves substituting sensitive data with non-sensitive tokens that can be easily mapped back to the original data through a secure method. This process often requires the involvement of third-party vendors who specialize in tokenization services.

As businesses rely on external vendors for managing tokenization processes, they must navigate various complexities such as ensuring compliance with data protection regulations, managing service level agreements, and maintaining consistent communication. Additionally, the dependency on these vendors can make it difficult for businesses to control their data security practices, manage risks, and address issues promptly. This can lead to an increased administrative burden and potential delays in the response to security incidents or changing business needs.

Therefore, while tokenization provides significant security improvements, the added layer of vendor interaction can complicate an organization’s ability to manage its data protection effectively.