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Data masking techniques for development environments include tokenization (replacing sensitive data with random tokens), encryption (AES-256 for structured data), and pseudonymization (replacing names with aliases). Format-preserving masking retains data structure (e.g., masking credit card numbers while keeping length/type). Dynamic masking generates fake data on-the-fly, while static masking creates permanent masked datasets. Tools like HashiCorp Vault or Oracle Data Masking automate these processes for compliance (e.g., GDPR).

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