A method for encryption of a digital watermark by intelligent halftoning includes receiving image data that define at least a portion of a document to be printed in terms of at least three halftone images corresponding respectively to three printing colorants, each of the three halftone images comprising a plurality of halftone cells. The image data are modified by phase-shifting some of the halftone cells of at least one of the halftone images relative to the other halftone images to encode a watermark within the portion of the document such that the at least one phase-shifted halftone image includes a phase-shifted region and a non-phase-shifted region. The modified image data are used to print the portion of the document on a substrate that will fluoresce when subjected to UV illumination. The printed portion of the document includes a first printed pattern resulting from the phase-shifted region and a second printed pattern resulting from the non-phase-shifted region. The first and second patterns of the printed portion of the document appear substantially similar when the portion of the document is viewed in visible light, and appear dissimilar when the portion of the document is viewed in UV light such that the watermark encoded in the modified image data is perceptible when the portion of the document is viewed in UV light and is hidden when the portion of the document is viewed in visible light.