Stegnography is the most common term used in the IT industry, which specifically means, "covered writing" and is derived from the Greek language. Stegnography is defined as the art and science of invisible communication i.e. it hides the existence of the communication between the sender and the receiver. In distinction to Cryptography, where the opponent is permitted to detect, interrupt and alter messages without being able to breach definite security grounds guaranteed by the cryptosystem, the prime objective of Stegnography is to conceal messages inside other risk-free messages in a manner that does not agree to any enemy to even sense that there is any second message present. Nowadays, it is an emerging area which is used for secured data transmission over any public medium such as internet. In this research a novel approach of image stegnography based on LSB (Least Significant Bit) insertion and cryptography method for the lossless jpeg images has been projected. This paper is comprising an application which ranks images in a users library on the basis of their appropriateness as cover objects for some facts. Here, the data is matched to an image, so there is a less possibility of an invader being able to employ steganalysis to recuperate the data. Furthermore, the application first encrypts the data by means of cryptography and message bits that are to be hidden are embedded into the image using Least Significant Bits insertion technique. Moreover, interpolation is used to increase the density