TABLE OF CONTENTS The first application of OVD technology as an anti-counterfeiting feature was the result of the adaptation of existing holographic technology to high volume manufacture by direct embossing onto foil and the application of that foil onto the security document by a hot stamping process. The security hologram was developed initially by the American Bank Note Company through its subsidiary, American Bank Note Holographies (ABNH) and was first adopted by MASTERCARD in 1982 in the form of a 2D/3D holographic foil image. Two years later VISA used a 3-D variation of the ABNH technology to protect its new credit card series (Pagan 1990). In both cases the use of the hologram resulted in a marked decrease in the rate of credit card counterfeiting and fraud.
In the years that followed many other variations of holographic foil images have appeared on various types of financial transaction cards. During the same period attempts were made to apply similar technology to paper substrates, including prototype banknote applications. It then became apparent that the hologram suffered from several serious problems, which reduced its effectiveness as a security feature when applied to these less robust substrates.
Some of these problems already existed in the case of the card applications. The key disadvantages included: (1) image blurring (and therefore reduced recognition) under extended light source illumination, (2) lack of image brightness, (3) very poor brightness and recognition after crumpling of the paper substrate and finally (4) lack of control...
