Biometric authentication systems require a fast and accurate method of matching biometric data for identification purposes. This paper introduces a data reduction technique based on image processing to better embed biometric data in small images. For the most part, biometric data cannot be directly embedded in small images, because of limited embedding capacities and a large amount of data in biometric images. An image processing technique to extract features from biometric data, like fingerprints and retinal scans, has been developed and tested. This new technique developed to extract features is based on the Hough transform and has been tested on a large volume of real image data. The data reduction technique was applied to these images and the data reduced to size, which could be easily embedded in small pictures, like those on identity cards. Existing embedding algorithms were utilized.