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Hash-based PII Matching

Overview

Hash-based PII matching is a privacy-preserving technique used to compare personally identifiable information (PII) without exposing the raw data. In this approach, sensitive identifiers such as names, email addresses, phone numbers, or government IDs are transformed into cryptographic hashes. These hashes can then be matched across systems or databases to verify identity, detect duplicates, or link records while keeping the original PII concealed.
For banks, fintechs, healthcare providers, insurance companies, and regulators, hash-based matching enables secure data sharing and compliance with privacy regulations like GDPR, CCPA, and India’s DPDP Act. It reduces the risk of data breaches since hashed values cannot be easily reversed if proper hashing algorithms and salts are used. This method is increasingly applied in KYC/KYB verification, fraud detection, and consortium data collaborations, where accuracy and security must be balanced with privacy obligations.

FAQ

What is hash-based PII matching?

Using cryptographic hashing to match sensitive data without exposing raw values.

Why is it important?

It balances data sharing and fraud detection with privacy compliance.

Who uses it?

Banks, fintechs, and regulators managing large customer datasets.

What laws support its use?

GDPR and data protection frameworks requiring secure data handling.