When CAPTCHA was first used, it was effective because bots weren't as prevalent as they are today. Now that character/image recognition has improved dramatically, the word verification check for humans is less effective. And recent efforts have been to increase the distortion the images to nearly impossible to read even for humans.
In this case, there are two "words" but the first is unrecognizable and the second isn't even a word (that I know of). Yesterday, I encountered:
This is better since it's an actual phrase that many people would distinguish easily. But a few issues I can see with this is easy image detection and cursive is unfortunately becoming something of the past. I also saw this yesterday:
The "Security PHRASE" is more of an answer and the instructions should be updated to match that. So this is more of a context security function instead of content which for the time being is more secure. But the problem with this is assuming that everyone understands all the options in the selection. Also, the correct answer was "differential calculus" but this doesn't apply to everyone. In the past, I've seen some human verification tools use of color which affects me (and many others) personally. While security is important, the user-experience is just as important and should not cause any obstacles for any user.