The art of sending secret information from sender to receiver plays a prominent role in information security. In recent times, internet plays a major role in transferring digital multimedia data. But the main drawback by using the internet is, information security is less due to the increasing usage of internet. For information security many data hiding methods exists. One such method or technique is LSB technique. In this paper information can be hidden in LSBs of the cover image. In this

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... d a modification to the LSB technique is proposed which is based on the 2 nd and 3 rd LSBs of cover image. It means there will be an inversion in the LSB bit of cover image based on the pattern of 2 nd and 3 rd LSBs of cover image i.e. (00, 01, 10 and 11). So this will be an advancement to the LSB technique. In this paper it is proposed for grayscale image. Encryption is also applied for the message image for providing extra security to the secret message. The encryption done here is by using binary bit plane scrambling and XOR. So that there will be dual layer protection to the secret message or information.