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To create a signature overlay on an image in Photoshop CS4 or later versions, start by making a copy of the original layer with Ctrl + J. Hide the original layer by clicking the eyeball icon. Use the rectangular marquee tool to draw around the signature area and go to Image > Crop. Press Ctrl + T to deselect the marching ants. With the copy layer selected in the layers panel, press Ctrl and click the Create a new layer button. Press D to set color sliders to black, then use the paint bucket tool to fill the under layer with black. Select the background eraser tool from the left-hand toolbar to thoroughly remove the background.