Abstract: Recent years have witnessed the rapid development of
the Internet and telecommunication techniques. Information security
is becoming more and more important. Applications such as covert
communication, copyright protection, etc, stimulate the research of
information hiding techniques. Traditionally, encryption is used to
realize the communication security. However, important information
is not protected once decoded. Steganography is the art and science
of communicating in a way which hides the existence of the communication.
Important information is firstly hidden in a host data, such
as digital image, video or audio, etc, and then transmitted secretly
to the receiver.In this paper a data hiding model with high security
features combining both cryptography using finite state sequential
machine and image based steganography technique for communicating
information more securely between two locations is proposed.
The authors incorporated the idea of secret key for authentication
at both ends in order to achieve high level of security. Before the
embedding operation the secret information has been encrypted with
the help of finite-state sequential machine and segmented in different
parts. The cover image is also segmented in different objects through
normalized cut.Each part of the encoded secret information has been
embedded with the help of a novel image steganographic method
(PMM) on different cuts of the cover image to form different stego
objects. Finally stego image is formed by combining different stego
objects and transmit to the receiver side. At the receiving end different
opposite processes should run to get the back the original secret
message.