From the prospect of the printing forgery prevention technology, this paper systematically analyzed the principles of digital watermark in printing forgery prevention technology, based on this, it proposed wavelet transforming printing forgery prevention algorithm based on chaotic characteristics, in this paper, by using digital watermark image scrambling technology based on chaotic mapping to encrypt the wavelet transforming coefficient, then choose the different K value in chaotic mapping and the size of the scrambling image to combine the the cryptography technology and the wavelet transforming technology for resisting the various printing forgery attack effectively. In the end, the author made a detailed design about the wavelet transform printing forgery prevention system which based on chaotic characteristics and put it into fact by VC++, then validated the algorithm by experimental result, then compared it to the traditional watermark algorithm from the aspect of the image compression and anti attack ability to prove the stability and robustness of the algorithm this paper proposed.