*** ABSTRACT 9660255 Sabri This Small Business Innovation Research Phase I project involves research on development and application of optical data acquisition system, I/O devices, optical data analysis and recognition, derived from basic concepts in optical physics in innovative ways to problems in security, credit cards, identification cards, protection of computer chips, etc. Specifically, an optical security system embodying phase-encoding will be conceptualized as encryption means in conjunction with biometric measurements, with the general objective of production of an automatic tamper-proof security system, which cannot be defeated by application of the rapidly advancing computers, charged coupled device (CCD) technology, image processing hardware and software, printers, scanners, and copiers, which can provide real-time validation and security verification of individuals, and which can be extended to verification of objects, documents, etc. In Phase I, various concepts will be developed with emphasis on the use of retinal scanning. A trade study will be performed to select a feasible concept for future implementation. The concept will be rapidly prototyped for a proof-of-concept experiment, for feasibility evaluation of the proposed concept, and for providing a preliminary design and demonstration plan for Phase II, which will involve development, building, and testing of a brass-board model of the optical security system. The commercial market is desperately in need of a simple, inexpensive scheme to stem the $2 billion fraud rampant in this sector. In addition, there are ample military uses in entry into secure or sensitive areas, and the verification of parts, such as computer chips purchased by the government. It is very likely that phase-encoded encryption schemes could solve both these problems. ***