The process of obscuring sensitive data within a financial document is known as redaction. This involves permanently blocking out specific pieces of information, such as account numbers, personal addresses, or transaction details, to prevent unauthorized access or disclosure. For example, when submitting a bank statement as proof of residency, sensitive financial transactions might be concealed to protect personal financial information.
Redaction is vital for maintaining privacy and security in various legal, business, and personal contexts. It mitigates the risk of identity theft, fraud, and other malicious activities. Historically, redaction was performed manually with markers or cutting tools, a time-consuming and often imperfect process. Modern methods leverage digital tools for more efficient and reliable data concealment.