An identification device adapted to be attached to a tool comprising a holder formed as a curved stratum having a C-shaped cross-section, the stratum having at least one opening thereon, and the internal surface of the holder being micro-etched; an identification tag placed within the holder; and hardening material for fixing the identification tag within the holder.The identification device is created from a holder, shaped as a curved stratum having a C-shaped cross-section and at least one opening thereon, micro-etching the internal surface of the holder; and fixing an identification tag within the holder by a hardening material. Fixing the tag within the holder may comprise placing the holder within a container; filling the holder to about half the height with a hardening material; placing the identification tag within the holder; filling the holder with the hardening material; and hardening the hardening material.