Rapid growth in technological development, the use of the internet has grown many folds. Along with it, the sharing of privacy information in networks creates ownership issues. In order to create a high level of security for sharing private information, the concept of steganography is introduced along with encryption based invisible watermarking techniques. The proposed system hides the encrypted private messages by using onetime pad which follows the concept LSB algorithm in spatial domain. The system combines steganography and encryption for enhancing the confidentiality of the intended messages. At first, the private information of the user is encrypted by using the onetime pad algorithm. Then the encrypted text is hidden the Least Significant Bit (LSB) of the different components of the color image in such a way that as to minimize the perceived loss of quality of the cover image. The beneficiary of the message is able to retrieve the hidden back and from the stego-image and extract the cipher text and find the plaintext from using the onetime pad algorithm. The proposed algorithm will be tested and analysed against three different hiding positions of color image components.

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