A watermarking method involves mostly invisible artifacts and is sensitive to any modification of the picture at the level of precision rendered by the compressed version of the image. The image is compressed according to a known compression standard, such as the JPEG standard, and with a fixed quality setting. Using the JPEG standard, the original image is cut into blocks to which the Discrete Cosine Transform (DCT) is applied and the DCT coefficients quantized. The watermark according to the invention is applied to the quantized DCT coefficients. This is done using an encryption function, such as a secret key/public key algorithm. The JPEG compression is then completed using a lossless compression scheme, such as Huffman coding, to produce the compressed and watermarked image. Authentication of the compressed and watermarked image begins with a lossless decompression scheme to obtain the set of quantized DCT coefficients. The coefficients are authenticated, and the DCT output of each block is dequantized. If necessary, an inverse DCT is applied to each block to output the decompressed watermarked image.