Feature Articles
Caught in the light
As authentication devices, holograms have been in
use for nearly a quarter of a century. The earlier forms of these
security devices have come under pressure recently as counterfeit
targets in their own right. How worried should we be that holograms
are now under attack and what is the industry doing to ensure that
confidence is not lost in such a resourceful anti-copy technology?
Our Non-Executive Director, Jeremy Plimmer, talks
to Ian Lancaster of Reconnaissance International and explores the
opportunities and threats in this important security sector of the
product and image security market.
Document and product security systems depend on
holograms for protection from counterfeit and forgery attack. The
security hologram is possibly the most versatile of security devices
as it can provide such a variety of functions. As an anti-copy
technology it protects against photocopies and scanning attacks. As
a forgery protection device holograms can be invaluable in providing
protection against alteration and tampering.
“Up until recently, security
holograms have faced no major threats from replication attacks and
even now these threats are more perceived, rather than actual”. Says
Ian Lancaster. “But they raise the question of who is examining the
hologram, and how. A copy hologram may be good enough to pass a
cursory glance by a member of the public, but is probably
recognisable as a copy by a trained examiner. And what is the
function of the hologram – or any authentication device? Is it to
prevent fakes being made, or to reveal them? I believe it can only
be the latter – it’s easier to make an accurate copy of a branded
product (or even a banknote!) than it is to make an accurate copy of
a hologram, so an examiner can often detect the fake hologram more
easily than they can detect the fake product1”.
It’s an interesting fact though that every banknote ever made has
been counterfeited at one time or another. The quality of the
authentic notes though, provides a satisfactory measure from which
it is possible to identify copies.
“I have seen lots of poor attempts to copy
authentication holograms in the past and a few good ones.” Ian
comments. “That said though, I have never seen any copies that are
good enough to pass muster when they are viewed through a magnifying
glass or compared with a reference hologram.” He continues.
It should also be recognised that the ubiquitous
use of holograms must inevitably lead to more attempts to replicate
the devices. Since people seem to remember the negative parts of
news stories more easily than they can recall the positive parts of
the report it follows that the ‘counterfeit hologram’ story
registers rather than the fact that the counterfeit has been
discovered indicating that it was possible to tell the difference
and the hologram had therefore functioned in a satisfactory manner.
The industry has reacted to counterfeiting
threats by creating more complex holograms using sophisticated
proprietary processes that are not widely available and the success
of these developments can now be seen on a wide array of banknotes
worldwide. Always conservative in the adoption of new technology,
the banknote industry waited for two decades for the devices to
develop into a sufficiently secure form before they were adopted for
currency protection.
“The paradox now is that many authentication
holograms have grown so complex it’s difficult to train members of
the public in the skills necessary to recognise all the holograms
they come across in daily life”. Ian comments. “Security holograms
are ideal second level security devices and can offer highly
effective protection at the commercial interface where trained staff
meet the pubic.” he adds. This happens at bank counters and through
security inspection audits of branded goods at retailers and within
the supply chain.
Design is seen
as an important component of securing holograms
Design is an important part of the solution in
deterring illegal replication and holograms that contain a variety
of contrasting security features are more effective at discouraging
attacks than those that depend on a single element.
The most secure designs include several
components such as 2D/3D holographic mechanisms combined with
stereograms and fine line kinetic (moving) images. It takes a high
degree of skill to master designs that include all of these security
features and also explains why the industry is now creating more
reflection (classical) holography that requires traditional lasers,
lenses and optics to combine portraits and 3D models in security
work.
It is an established fact that the public are
able to recognise and remember faces more easily than abstract
designs and this practice is well illustrated in the use and
application of watermarks in security documents and banknotes. “The
move towards classical holography for security applications reflects
the talent required to make a high quality model. This is in itself
a highly skilled and demanding job since it combines the dexterity
of sculpture with the physics of holography”. Says Ian. We can
therefore expect to see more of these techniques in future, where
primary checks involving easily recognisable icons are an important
function of the authentication system.
There is however an important dilemma here, and
it involves the skills required to ensure that the industry
continues to grow in future years. Ian identifies what he sees as a
significant issue. “I am personally concerned for the next
generation of holographers. There are too few places to learn
creative holography these days and this has been caused by the fact
that the industry is moving into its second generation. That
flourish of excitement and enthusiasm when the process was new in
the eighties has diminished. Too many courses have closed and even
though the subject is taught in physics and art classes I see
evidence of a skill shortage in future unless the industry makes a
concerted effort to encourage and attract more interest in the
techniques of creating holograms”. He says.
This criticism is being fielded by members of the
IHMA, (International Hologram Manufacturers Association) who are now
discussing apprenticeship schemes aimed at encouraging youngsters to
train in a career in holography. In the field of holographic art the
Royal College of Art that has produced many talented individuals
specialising in decorative and display holography, but has been
disappointed by emigration of skills into other sectors. Similar
patterns have been observed in the USA too with MIT post-graduate
courses in holography being removed from the curriculum.
“It’s vitally important that we support the
industry with a comprehensive training scheme so that we can
continue to inject growth into this market sector”. Ian concluded.
The market for security holograms continues to
grow – Ian estimates it at US $1.3 billion annually, but is
currently involved in surveying the industry for the upcoming
publication - HoloPack•HoloPrint (4th Survey of the
market for holograms - to be published by Reconnaissance
International early in 2007). So it’s in the interests of the
industry to ensure that such growth is not stunted by lack of talent
in production teams.
After all is said and done the brand has to be
its own statement of authenticity – if that cannot be trusted then
branding is a worthless function and products of the future will
only be sold in their generic, unbranded form.
Holograms are key strategic
assets in the structure of all authentication programs
With so many holograms now being used in brand
and document protection, the public may not be able to easily
recognise every security hologram they come into contact with,
however such devices do offer an assurance that brand owners are
taking a duty of care to protect buyers from dangerous fakes and in
this respect the public have a right to expect that every precaution
is being taken to ensure the brand is protected from piracy attacks.
After all is said and done the brand has to be its own statement of
authenticity – if that cannot be trusted then branding is a
worthless function and products of the future will only be sold in
their generic, unbranded form.
When it comes to authenticating holograms at an
expert level it is more practical to train inspection personnel in
border control, brand protection and banking teams with specific
knowledge about the features of those holograms that they will need
to verify on a daily basis. Reference guides are an important part
of this process so that comparisons can be made that reveal when
counterfeits are about to enter the system.
Whichever way you look at it, security holograms
still cannot be copied well enough to evade detection - if the
correct procedures are followed. As Abraham Lincoln liked to point
out, ‘you may be able to fool some of the people, at one time or
another, but you cannot fool everyone’.
In that respect holograms have a long and secure
future as authentication devices that are resilient enough to adapt
to any forthcoming attack.
Jeremy Plimmer
Next Stage of the Journey
Whilst the European
Union (EU) Parliament has endorsed the use of facial biometrics for
passports and the Council of the EU has mandated the use of both
facial and finger biometrics for passports, many challenges exist on
the road to implementation. These include:
· creating methods for verifying the identify of
existing passport holders;
·
finding ways to ensure the integrity of the document
at each stage in the production process;
· managing and maintaining the integrity of databases,
and
· introducing reliable enrolment and production
processes across the participating countries.
- END -
We are now entering an age where the rules of commerce are being
turned on their head. The traditional methods of business called
upon a model where vertically integrated functions fed products
through to customers and where brand owners actually manufactured
what they marketed.
This approach is fast taking a back seat as brand owners look to
strip cost from the manufacturing process and outsource the
responsibility for production to others who produce product on their
behalf.
Responsibility for protecting stocks of finished and raw materials
from theft is now the concern of the sub-contractor. So is the
responsibility for safety, employment liabilities such as sick pay
and maternity leave and employers contributions to pension schemes.
Brand Owners who have re-structured to take advantage of these
economies have exchanged one set of risks though for another. They
now face the threats of over production and piracy from
sub-contracting firms who have direct access to designs and
developments that they can use to benefit themselves rather than the
original intellectual property owner.
In traditional businesses one only had to walk around the ‘shop
floor’ to take stock of how work was proceeding. Now Brand Owners
sit at the rim of supply chains that stretch right across the globe.
Such supply chains may bring economies of a kind but they open a
whole new ‘can of worms’ when it comes to managing the risk
involved. Brand Owners now need (more than ever) to assure their
customers that the goods they buy are authentic otherwise the value
of their brands face dilution and so do their profits.
Welcome to a
world where real time information management is one of the most
important functions of any business - with the emphasis on ‘real
time’ meaning ‘genuine’ as well as timely.
Jeremy Plimmer
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Holography
companies face an uncertain future
The emergence
of competing technologies; the different and often conflicting
pressures being exerted by the different branches of holography; the
rapid spread of design, origination and production technologies –
all these are introducing turbulence into the market. Holography has
been at the centre of authentication technology for many years but
now there are signs of substantial change:
The
credibility of holograms is under attack
-
Increasing
instances of counterfeit holograms and effective simulations
have reduced the confidence in the technology that existed in
its early days.
-
Major end
users, potential end users and most recently the FDA Product
Surety initiative have stated publicly that they have
reservations on the effectiveness of holography for product
security.
-
The
proliferation of different designs and a lack of effective
consumer communication may have led to “image blindness” amongst
many of those at whom authentication is targeted. Holograms may
be sometimes be accepted by virtue of their generic physical
properties, rather than the specific design that they carry.
-
Improvements in analysis and replication technology, and
criminal motivation in compromising product security, have
reduced the “half life” – the time taken to effectively
compromise holographic security devices.
The industry
has failed to counter these concerns
-
In the
face of increasing threats to credibility, the industry response
has been fragmented. In some instances, major questions on
credibility, and details of replication techniques, have come
from within the industry itself.
-
This
weakness has been thrown into relief by the powerful and
co-ordinated approach taken by the RFID lobby in the last twelve
months. Although not an obvious replacement, the RFID lobby has
been promoting capabilities that would encroach on holographic
security devices.
The growth of
the industry has led to development of significant sub sectors with
very different, and often conflicting, agendas and business models:
-
High
security – requiring the highest levels of device and supply
chain security.
-
Brand and
Product Security – requiring solid security and addressing
multiple authentication audiences
-
Packaging
– requiring high volume, lowest possible cost.
-
Tools –
which operate to a very different industrial business model
-
Production
capacity, and increased availability and affordability of
previously restricted techniques – e.g. pattern demetallising –
places further pressures on the integrity of security supply
chains.
-
Pressures
are being exerted by directly competing visible technologies
(e.g. nanotechnology), as well as a range of potential
substitute security technologies from Taggants to RFID.
-
Industry
profitability is patchy. Although a handful of businesses make
acceptable returns, most holographic businesses have a varied
record. This constrains innovation and investment, and places
greater pressure to increase volumes from existing capacity –
which can conflict with the need for secure and restricted
supply in areas that can impact the integrity of products sold
for security related uses.
Offering just a product will no longer be enough
Until
recently, the strength and credibility of holograms was such that
they provided effective security as a “stand alone” device. With the
pressures noted above, this can no longer be taken for granted:
Expertise in
the problem, not just the technology will be needed
-
As the
recognised threats from counterfeiting, diversion and tampering
continue to grow, they are being increased by legislative loads
and litigation threats. Providers must be able to demonstrate
both ability and willingness to embrace the issues in
partnership with the client on a holistic basis, not just on
technology alone.
-
Increasing
ingenuity by criminals requires an equally creative response by
those affected, and their suppliers. The ability to provide
creative input, and market intelligence to inform the problem,
will increasingly be required.
Holography
will have to demonstrate its benefits
-
Holography
remains an excellent authentication technology, but users will
increasingly need to understand, and providers demonstrate,
where in the supply it is a more effective technology than
competing ones.
-
Authentication devices are frequently bought on price, and
technologies competing with holography can argue that they are
greater value – slightly less functionality, but at a
significantly lower cost. This argument will only be effectively
countered by demonstrating convincing business models showing
buyers the ROI of a holographic security device investment.
Technology
partnerships will increase
-
We are
already seeing an increasing number of technology partnerships
providing solutions. We think this will increase and move to
genuine supplier alliances, rather than a tendency to
incorporate one technology within another (e.g. biological
taggants within a hologram). Each technology will probably
address a specific threat in the supply chain, relying on others
to address the areas where it is less effective.
-
Increasingly symbiotic relationships are likely to develop.
Better market
definition is needed
-
Within
Brand and Product security, a range of descriptions and
definitions abound – “Brand Protection”, “Product
Authentication” “Brand Security” etc. There is significant
overlap, and they are used by many people on an interchangeable
basis. In our view, this is both wrong, and misleading.
Successful
businesses will be those that embrace these changes, not reject them
In order to
adapt to the emerging market, hologram suppliers will need to
significantly change their approach. DMW Partners has been formed in
order to help both Brand Owners and their key technology suppliers
profit from this:
In the
short term:
o
Hologram suppliers need to identify those points in the entire
supply chain, where it has the most appropriate, and cost effective
role.
o
This needs to be defined, tested and proved. Cost of mitigation and
financial returns can be assessed, and appropriate pricing
determined. Equally, those areas where optical security is not the
best answer can be identified, partners sought, and a comprehensive
package proposed to the client.
o
Product Security is an ongoing process. Attempts must be expected
to compromise any measures taken. Suppliers will need to participate
fully in this process – probably to drive it – which means that
systems for measurement need to be determined, monitored, and
strategies agreed for technology upgrades
-
Reframe
the client relationship
o
Move the discussion from away from seller/buyer to “whole business”
and allow proper dialogue, in order to:
Ø
Share ideas
Ø
Better understand each other’s issues
Ø
Identify benefits and opportunities beyond product authentication
Ø
Establish a service, as well as a product, relationship
o
Take a wider viewpoint, avoid restrictive defence of the current
situation, introduce additional ideas and concepts, and include
other partners where opportunities arise.
o
Base proposition on values rather than costs
o
Set the objective as problem solution, not just technology
performance
o
Align thinking and training more closely to clients’ brand
objectives
o
Adopt a leadership position in regard to incorporation of other
technologies.
In the medium
term:
-
Reshape
the business to most profitable areas:
o
Strategy
o
Better targeted and informed product development
o
“Whole business engagement” – not just sales
o
Effective alliances to create unique offerings
o
Relationships based on trust and mutual interest – not price.
o
Services
The risks are
too great to ignore
-
With a
rapidly expanding hologram supply base and client trends on
product outsourcing, only those suppliers recognised as being
“at the top of their game” will thrive.
-
Rapidly
changing markets and product risks make regular assessment based
on intelligence, decisive action and continuous development
essential to success.
-
Increased
capacity and competition will create an unforgiving market. It
is likely that only the best suppliers to the most profitable
brands will make consistent profits.
Richard
Merrick - DMW Partners
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Biometrigram® targets digital
counterfeiters
A new ‘biometric hologram’ that defies digital
counterfeits and can be produced in seconds is set to revolutionise
the way that brands are protected and security ID cards created.
New Biometric Hologram Plugs the Digital Hole in Secure ID
Ver-tec’s technology combines analogue recording with digital data
to defeat the counterfeiters
Ver-tec Security Systems have been quick to recognise the threats
and vulnerabilities in a booming digital age. They have developed a
patented production systems and machine reader verification
hardware, creating an integrated system for the security document
market.
A potential application for the future could be high value
personalised tickets for major international events such as the
Olympics or the World Cup. Biometric information and an individual
ticket reference could be incorporated into the ticket and checked
against a register of members or police records database, providing
additional security.
Other applications include track and trace brand protection and
packaging solutions.
- END -
Controversy
continues to stalk the e.passport project in the USA with the State
Department and Government Printing Office announcing their
intentions to award production prototype contracts to four suppliers
of RFID-enabled passports.
These documents
would follow the traditional design and construction of the Machine
Readable Passport (MRP) standard fixed by ICAO, with the further
introduction of a Radio Frequency accessed data storage chip that
contains all the eye readable data carried on the bearer page plus
additional biometric details which could include fingerprints and a
digitally stored photograph.
The proposals
have enraged ACLU – the American Civil Liberties Union who accuse
the Government of providing a tracking device that interferes with
the holders privacy. The ACLU fear that because the ICAO standard
specifically precludes encryption, - the US (says the ACLU)
apparently blocked efforts to impose encryption as it felt that this
process would act as a barrier to adoption by poorer States, - it
will be easy for anyone carrying the right reader to extract data in
a covert manner from a holders e.passport.
Those who have
bothered to read the ICAO specification for such chips would note
that 13.56MHz is the chosen frequency and the read range of these
chips would be no more than10cm (4inches). Since the reading field
deteriorates rapidly as a passport moves away from the reader it
would require a very ‘up front and personal’ approach to extract
data surreptitiously.
Quite what
someone would be able to do with this data remains a mystery to me
other than they may gain access to my date of birth or my place of
birth. Both these can be viewed when the passport is open anyway.
Better ‘read than dead’ continues to be my philosophy here anyway.
Privacy experts
are suggesting that offending passports are carried in a metal
wrapper to ensure that details are not unintentionally leaked to
unauthorised readers. Never let the facts get in the way of a good
protest seems to be the message here.
Frank Moss,
Deputy Assistant Secretary of Passport Services for the State
Department’s Bureau of Consular Affairs made a statement that
indicated that the ‘skimming of data’ issue would be addressed as
part of the forthcoming tests. These would include durability
testing to ensure that the e.passports stood up to all the wear and
tear challenges that a modern passport has to face in its ten-year
life.
The chips in
Smart Cards have the protection of a polycarbonate carrier, but the
world moved away from hard bound passports over a decade ago. The
flexible covers and highly mechanised manufacturing methods involved
in passport manufacture today will require a highly robust inlay to
ensure optimum performance over the life of an e.passport.
One can only hope
that these challenges will be addressed effectively in the short
time available before deployment later this year. If not then, the
privacy lobby will have little to worry about.
Jeremy Plimmer
- END -
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