In this work we develop a new encryption system for encoded image in phase using the fractional Hartley transform (FrHT), truncation operations and random phase masks (RPMs). We introduce a simplification of the FrHT with the purpose of computing this transform in an efficient and fast way. The security of the encryption system is increased by using nonlinear operations, such as the phase encoding and the truncation operations. The image to encrypt (original image) is encoded in phase and the truncation operations applied in the encryption-decryption system are the amplitude and phase truncations. The encrypted image is protected by six keys, which are the two fractional orders of the FrHTs, the two RPMs and the two pseudorandom code images generated by the amplitude and phase truncation operations. All these keys have to be correct for a proper recovery of the original image in the decryption system. We present digital results that confirm our approach.