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Open a new picture with background white and colors set to 16 million. Set foreground color to any as we will be getting rid of it later anyways. Draw a word using any font and any size. The bigger the better. Used here was Impact with size set to 72. Antialias needs to be checked.
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With text still selected, from the top line menu click "Selections" then "Modify" then "Feather". Set "Feather" to 2. (This is will give it a little border when we're done.) Click OK.
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With the text still selected, from the top line menu click "Image" then "Special Filters" then "Add Noise". Set noise to "random" and %100.
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From the top line menu click "Colors" then "Grey Scale". From the top line menu click "Colors" then "Increase Color Depth" then "16 Million Colors"
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Change the background color to white. With the text still selected, from the top line menu click "Image" then "Special Effects" then "Hot Wax Coating"
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