Abstract: A system and method for logically masking data by implementing masking algorithms is provided. The method includes receiving one or more inputs from user regarding type of data masking to be implemented depending on type of data entry. Data entries include alphabetical data, data comprising unique codes, data comprising dates and numerical data. Based on inputs received, the data entries are classified and appropriate masking algorithms are executed. For masking numerical data entries, the data entries are first grouped using clustering algorithms and are then shuffled using shuffling algorithms. For low level of data masking selected by a user, numerical data entries are shuffled within groups and for high level of data masking selected by a user, numerical data entries are shuffled across groups.