Confidential! Navigating the Complex World of Security Printing

According to Joe Rouhana, vice president and general manager of Xerox’s software business group, check printing, packaging, and I.D. cards are common applications in this space.

“We’re seeing new opportunities in areas like high-value packages and prescription drugs,” he said, noting that the security printing market is growing in “multiple directions as companies work to ramp up brand protection efforts, especially in specific industries like pharma packaging, tobacco, and alcohol labels, due to governmental controls and anti-counterfeiting measures that need to be taken.”

Lior Krasnovsky, HP Americas category manager, labels and packaging workflow, sees growing demand for anti-counterfeit technologies a well, in markets such as health and beauty, high-end wine and liqueurs, food and supplements, natural pharmaceuticals, auto parts, and even chemicals.

“Security printing has made substantial progress in adding geo location as an inherent part of the security package, in adding the end user as a part of the verification cycle, and in dramatic improvement in ease of implementation,” he said. “Many tools allow customers to validate that the product they are purchasing is not only genuine – it is also not diverted. Having the consumer use their smartphone to validate that the serial number was not duplicated, is in the right location, and in some cases even to identify that the package is not a copy – is a capability that only a few years ago would have been considered imaginary.”

Going Digital

Mike Herold, director of inkjet solutions, commercial & industrial printing business group for Ricoh, advises PSPs looking to enter the security printing market to invest in a fully-digital solution for production that is “end-to-end” in scope. “This includes complete data management and control at the front of the process – and maintaining that control all the way through to delivery,” he said.

Rouhana recommends that PSPs “do their research” to uncover what type of security elements are required for the markets they are pursuing. “There are many types of security printing – watermarks, magnetic ink, holograms, and optically variable color changing inks, to name a few – all of which have varied levels of difficulty and cost,” he said. “Our Specialty Imaging Effects continue to be expanded. We have added algorithms to improve security marks and have added images as well as text. Additionally, we have expanded to include support on inkjet devices as well as laser. Printed electronics also present new opportunities for increasing security in printed collateral.”

On-site physical security is also essential, says Krosnovsky. “Being able to secure documents, inks, printed goods, and reading devices is important. You need to take into account that such requirements may come up from the brand – or from the security technology provider.”

Which is why success in the security printing market often requires an operational shift for PSPs – away from the printing technology itself and toward data management.

“PSPs in this space have an opportunity to benefit from their core competencies of managing complex, personal, confidential information,” said Herold. “As data security continues to be top of mind for consumers and businesses, companies that can prove their core competencies in this area will excel.”

Getting ISO Certified

At the highest ends of the market, in segments such as financial printing, PSPs are increasingly seeking International Organization for Standardization (ISO) certifications.

“ISO 27001 is a security certification for third party vendors,” said Chris Concannon, president of Network Financial Printing. “The banks need to know that the documents they send you are secured, and that there is a system in place on a yearly basis that allows you to be audited by ISO.”

According to Network Financial Printing’s Jack Concannon, getting ISO certified takes time, diligence, and technological investments.

“ISO/IEC 27001 requires management to systematically examine the organization’s information security risks, taking into account the threats, vulnerabilities, and impacts,” he said. “Organizations must also design and implement a coherent and comprehensive suite of information security controls and other forms of risk treatment, such as risk avoidance or risk transfer, to address those risks that are deemed unacceptable.”

Plus, he adds, they must adopt an overarching management process to ensure that information security controls meet ISO standards on an ongoing basis.

The Future Is Bright

While client and regulatory demands in this market can be deep and complex, the outlook for security printing is positive.

“The most optimistic industry consultants see the transaction market growing at about 10 percent between now and 2022,” said Herold. “For the future, PSPs need to focus on two important things: demonstrating through results and industry certifications that they have the ability to manage personal data; and being able to bridge traditional transaction output to communications that will fully inform the end recipient in new, creative and valuable ways.”