Security of the secret information has been a challenge when the large amount of data is exchanged on the internet. A secure transfer of information can be very much achieved by steganography and Cryptography. Steganography is a tool for hiding information inside an image. Cryptography is a tool which provides encryption techniques for secure communication. In the traditional steganograhy techniques principle was either to replace a special part of the frequency components of the carrier image, or to replace all the least significant bits of a multi-valued image with the secret information. Our new steganography uses an image as the carrier data, and we embed secret information in the bit-planes of the carrier. This technique makes use of the characteristics of the human vision system whereby a human cannot perceive any shape information in a very complicated binary pattern. We can replace all of the ―noise-like‖ regions in the bit-planes of the carrier image with secret data without deteriorating the image quality.
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