Data Anonymization: Definition, Importance, Pros & Cons, Techniques & Use Cases

Data anonymization is a technique used to protect private or sensitive information by erasing or encrypting identifiers that connect individuals to their data. It plays a crucial role in safeguarding confidential information and ensuring compliance with legal and regulatory requirements governing the collection and use of personal information. Key techniques include data masking, pseudonymization, generalization, data swapping, data perturbation, and synthetic data creation. While data anonymization enables companies to analyze and share data without exposing individuals to risk, it also has limitations such as reduced value and insight from the data, potential for re-identification, and challenges in obtaining consent.