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In this paper, information security is achieved using the combination of both cryptography and steganography techniques. Firstly preprocessing of data is done by using data dictionary module and then encryption and compression of data before sending it to receiver using Gray Level Modification (GLM) technique. Matrix and coding technique has been used for encryption of the data. The work in this paper shows an improvement in the embedding capacity of the existing steganography techniques. Those who seek the ultimate in private communication can combine encryption and steganography. Encrypted data is more difficult to differentiate from naturally occurring phenomena than plain text is in the carrier medium.
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