The network provides a method of communication to distribute information to the masses. With the growth of data communication over computer network, the security of information has become a major issue. Steganography and cryptography are two different data hiding techniques. Steganography hides messages inside some other digital media. Cryptography, on the other hand obscures the content of the message. The authors propose a high capacity data embedding approach by the combination of Steganography and cryptography. In the process a message is first encrypted using transposition cipher method and then the encrypted message is embedded inside an image using LSB insertion method.