Tokens are digital representations of sensitive data, used for security and encryption. Tokens can be used to replace sensitive information, like payment card numbers, with equivalents that have no exploitable value if they are intercepted. They are also used to generate one-time passwords (OTPs) or cryptographic codes to verify a login or transaction. They help institutions reduce the risk of information being misused, even if communication channels are compromised.
Use case/ examples for tokens
Multi-factor authentication: Generating one-time passwords through hardware or software tokens as part of multi-factor authentication processes, adding a verification layer on top of passwords.
Secure transaction processing: Replacing payment credentials with tokens during digital transactions, in order to protect cardholder data from exposure during processing and storage.
Session management: Using cryptographic tokens to manage user sessions securely, ensuring that session identifiers cannot be compromised by attackers.
