Season 2: Episode #15 | Understanding Data Masking and Its Role in Data Privacy

🔐 In an era of data breaches and tightening privacy laws, data masking is no longer optional—it’s essential. In this episode, Vadym and Kyrylo break down what data masking really is, how it works, and why every modern business needs it to safeguard sensitive information while keeping analytics and operations running smoothly.

🔍 What you’ll learn in this episode:
1️⃣ The different types of data masking—from static to dynamic and beyond.
2️⃣ Techniques like substitution, redaction, tokenization, and when to use each.
3️⃣ How to apply dynamic masking in BigQuery using policy tags and access controls.

➡️ Start making secure, data-driven decisions with OWOX BI

Podcast listing

Vadym:
Hey everyone, and welcome back to The Data Crunch Podcast! I’m Vadym, Growth Marketing Manager at OWOX.

Today, we’re diving into a topic that’s become mission-critical for any company handling sensitive data – data masking.

Think of it like handing someone a document with the most confidential parts blacked out – you still share valuable info, but nothing sensitive gets exposed. Now take that idea and apply it to digital records, analytics, cloud infrastructure, and customer support tools. That’s where data masking becomes essential.

And here to unpack this topic with me is Kyrylo, our Product Manager at OWOX. Hey Kyrylo, glad to have you back!

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Kyrylo:
Hey Vadym, good to be back! This is such a powerful topic – because honestly, a lot of companies are sitting on a goldmine of data but struggling with how to protect it properly. Masking is one of those under-the-radar solutions that deserves way more attention.

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Vadym:
Totally agree. And before we dive into the different types and techniques, just a quick reminder to all our listeners:

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Alright, Kyrylo – let’s start at the top. What is data masking, and why should companies care?

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Kyrylo:
Great starting point. At its core, data masking is a way to protect sensitive information by replacing it with fake – but realistic-looking data.

You can still run tests, reports, or even use it in analytics – but if someone unauthorized gets their hands on it, they won’t see the real customer names, credit card numbers, or personal info. It’s like having a working copy of your data, without the risk.

And the reason it’s so important is simple: regulations are tightening, threats are increasing, and data volumes are exploding.

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Vadym:
Right. So it's not just about keeping things private – it's about compliance, security, and trust, all rolled into one.

Now, what are some of the key reasons businesses implement data masking today?

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Kyrylo:
There are several.

First, you’ve got unauthorized access prevention – think phishing attacks, insider threats, or accidental data leaks.

Then there’s compliance – GDPR, HIPAA, PCI DSS – all of these require you to protect sensitive data, even in test environments or backups.

You also have critical system integrations, where third-party vendors need access to some data but not all of it.

Plus, masking helps with data sanitization – especially when you’re decommissioning old systems or migrating to the cloud.

And finally, it just simplifies security management. Instead of managing encryption across a dozen systems, you can apply centralized masking policies that control what’s visible to whom.

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Vadym:
That’s a solid list. Let’s talk about the different types of data masking, because it’s not just one-size-fits-all, right?

Kyrylo:
Exactly. There are several types, and they each serve a different purpose.

• Static masking happens once – it’s like creating a permanently sanitized copy for testing or sharing.
• Dynamic masking kicks in at query time – it’s role-based and real-time, great for customer service or finance apps.
• Deterministic masking ensures the same input always gives the same output – perfect for maintaining data relationships.
• On-the-fly masking applies rules as data moves between systems – ideal for CI/CD pipelines.
• And statistical obfuscation – that one keeps the statistical properties of your data but hides the actual values.

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Vadym:
Wow, okay. That’s a whole toolkit. But what about the techniques behind these types? How do companies actually go about masking data?

Kyrylo:
There are quite a few. Let me rapid-fire some of the most popular ones:

• Scrambling – Just jumbles up characters. Simple, but not very secure.
• Substitution – Replaces real data with fake, realistic alternatives.
• Shuffling – Mixes data within the same column – like swapping last names across users.
• Date aging – Moves dates forward or backward to maintain timeline integrity.
• Variance – Slightly tweaks numbers – great for salaries or prices.
• Nullifying – Replaces sensitive data with nulls – useful but makes the data less usable.
• Tokenization – Swaps data for placeholder tokens stored elsewhere.
• Redaction – Think of it as the digital version of blacking out lines on a paper.
• And of course, encryption, which is more secure but requires key management.

Each one has trade-offs between security, usability, and complexity.

Vadym:
Love that breakdown – it really shows how nuanced this stuff is.

Let’s shift to something more hands-on. A lot of our listeners work in BigQuery. How can they implement dynamic data masking there?

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Kyrylo:
Great question. BigQuery makes this pretty manageable with policy tags and data policies.

1. First, you set up a taxonomy and create policy tags for different sensitivity levels.
2. Then, you map masking rules to those tags – like who can see what.
3. Next, you assign those tags to specific columns in your BigQuery tables.
4. After that, you give users roles – like "Masked Reader" – so they only see what they’re allowed to see.

And by keeping this at the policy level, you avoid over-permissioning and keep everything tightly controlled.

Vadym:
Let’s talk use cases now. Where does data masking really shine?

Kyrylo:
It’s used across every major industry.

• In finance, it hides customer account details while still letting support teams help clients.
• In healthcare, it masks patient info for HIPAA compliance during research.
• In retail, it protects loyalty programs and purchase histories.
• Telecom companies use it to secure call logs and billing data.
• Even governments rely on it to protect citizen records and tax files.

It’s also a lifesaver in test environments, where using real data can be risky. Masked data keeps it realistic – without the exposure.

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Vadym:
And of course, like any good solution, masking has its challenges too. What are the biggest ones?

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Kyrylo:
Definitely.

1. Preserving data integrity – If masking breaks relationships, your reports won’t work.
2. Semantic consistency – IDs and formats need to stay valid, or you’ll get errors.
3. Integration – Masking tools have to fit into your workflow or they’ll just collect dust.

The solution? Use tools that are flexible, standards-compliant, and easy to manage. And always test your masking rules to make sure the data is still usable.

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Vadym:
So it’s not just about slapping on some privacy settings – it’s a whole strategy, right?

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Kyrylo:
Exactly. You’ve got to:

• Discover and catalog your sensitive data
• Analyze how it’s used
• Tailor your masking strategy to each dataset
• Continuously test and refine

It’s a process – but when done right, it unlocks secure collaboration, compliant analytics, and peace of mind.

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Vadym:

I love it. Thanks for breaking that down so clearly – this really shows how data masking isn’t just a technical fix; it’s a business enabler. It’s honestly exciting to see how far these tools have come.

And for those of you working with BigQuery or Google Cloud, don’t forget – our OWOX Reports Extension for Google Sheets helps you turn raw data into real insights, securely and easily. You can build reports, apply transformations, and visualize trends without touching SQL. Whether you're in marketing, finance, or ops, it’s built to help teams move fast and stay compliant. 

Start for free at owox.com and check out how we’re simplifying secure data reporting.

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Kyrylo:
Absolutely. If you’re serious about protecting sensitive data while still making it usable, data masking has to be part of your toolkit. And with the right tools and strategy, it’s easier than ever to get started.

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Vadym:
Alright, that wraps it up for this episode of The Data Crunch Podcast. Thanks for listening, and we’ll see you next Thursday – same time, same place. Stay secure, stay curious, and keep crunching that data.