A new image encoding and identification scheme is proposed for security verification by us-ing a CGH(computer generated hologram), random phase mask, and a correlation technique. The encrypted image, which is attached to the security product, is made by multiplying a QP- CGH(quadratic phase CGI) with a random phase function. The random phase function plays a key role when the encrypted image is decrypted. The encrypted image can be optically recovered by a 2-f imaging system and automatically verified for personal identification by a 4-f correlation system. Simulation results show the proposed method can be used for both the reconstruction of an original image and the recognition of an encrypted image.