What technique replaces original information with asterisks or Xs to conceal data?

Masking is the technique that replaces original information with characters such as asterisks or Xs to conceal sensitive data. This is often used in environments where sensitive information needs to be protected, yet still needs to be present in a form that can be used for processing or analysis. For example, in a database or application display, showing a phone number as "XXX-XXX-1234" allows users to understand the data format without exposing the full, sensitive number.

Masking is particularly important in cloud security because it protects personal and private data from unauthorized access or exposure while allowing certain functionalities to continue without disruption. This technique ensures compliance with data privacy regulations by limiting access to sensitive information, thus minimizing the risk of data breaches or leaks.

In the context of the other options, while mitigation refers to strategies aimed at reducing risk, layered defenses describe a security posture that involves multiple security measures, and multifactor authentication is a method for verifying identity. None of these directly relate to the technique of concealing data, which is why masking is the most appropriate answer.