Pseudonymization

Answer:

First of all the pseudonymization “strength” depends on the data you want to protect, so it is a risk based approach - higher the risk to the data subject stronger the pseudonymization technique.

Article 29 Working party refers to the following pseudonimyzation techniques as being most popular:
· Encryption with secret key: in this case, the holder of the key can trivially re-identify each data subject through decryption of the dataset because the personal data are still contained in the dataset, albeit in an encrypted form. Assuming that a state-of-the-art encryption scheme was applied, decryption can only be possible with the knowledge of the k ey;
· Hash function: this corresponds to a function which returns a fixed size output from an input of any size (the input may be a single attribute or a set of attributes) and cannot be reversed; this means that the reversal risk seen with encryption no longer exists. However, if the range of input values the hash function are known they can be replayed through the hash function in order to derive the correct value for a particular record. For instance, if a dataset was pseudonymised by hashing the national identification number, then this can be derived simply by hashing all possible input values and comparing the result with those values in the dataset. Hash functions are usually designed to be relatively fast to compute, and are subject to brute force attacks. Pre-computed tables can also be created to allow for the bulk reversal of a large set of hash values. The use of a salted-hash function (where a random value, known as the “salt”, is added to the attribute being hashed) can reduce the likelihood of deriving the input value but nevertheless, calculating the original attribute value hidden behind the result of a salted hash function may still be feasible with reasonable means;
· Keyed-hash function with stored key: this corresponds to a particular hash function which uses a secret key as an additional input (this differs from a salted hash function as the salt is commonly not secret). A data controller can replay the function on the attribute using the secret key, but it is much more difficult for an attacker to replay the function without knowing the key as the number of possibilities to be tested is sufficiently large as to be impractical;
• Deterministic encryption or keyed-hash function with deletion of the key: this technique may be equated to selecting a random number as a pseudonym for each attribute in the database and then deleting the correspondence table. This solution allows diminishing the risk of linkability between the personal data in the dataset and those relating to the same individual in another dataset where a different pseudonym is used. Considering a state-of-the-art algorithm, it will be computationally hard for an attacker to decrypt or replay the function, as it would imply testing every possible key, given that the key is not available;
· Tokenization: this technique is typically applied in (even if it is not limited to) the financial sector to replace card ID numbers by values that have reduced usefulness for an attacker. It is derived from the previous ones being typically based on the application of one-way encryption mechanisms or the assignment, through an index function, of a sequence number or a randomly generated number that is not mathematically derived from the original data.

You can check out Article 29 Working Party opinion here : https://ec.europa.eu/justice/data-protection/article-29/documentation/opinion-recommendation/files/2014/wp216_en.pdf.