Which of the following is a limitation of tokenization?

Tokenization is a security method that replaces sensitive data with unique identification symbols (tokens) that retain all the essential information about the data without compromising its security. While tokenization does enhance data privacy and security by effectively decoupling sensitive information from its use, it has specific limitations.

The choice indicating that tokenization may not protect data in transit is correct because, while tokenization secures data at rest (stored data), the tokens themselves can still be subject to interception or exposure when data is being transmitted over networks. For instance, if tokens are not properly secured during transmission—such as through encryption or secure transfer protocols—malicious actors can potentially intercept these tokens and exploit them. Therefore, the protection offered by tokenization does not extend to scenarios where data is moving across networks unless additional security measures are implemented.

The other options describe aspects that either do not align with the limitations of tokenization or misinterpret its functionality. For example, saying it can store unlimited data does not accurately reflect the nature of tokenization as it merely replaces sensitive information rather than expanding storage capabilities. The assertion that it slows down system performance is not a fundamental characteristic of tokenization, as the impact on performance can vary based on implementation and system architecture. Finally, the idea that