In the present world, digital images are one of the main carrier of information. However the digital images are easily getting tampered due to the availability of image editing software such as adobe Photoshop and so on. It is possible to remove important features or information from an image without leaving any traces. Therefore as a solution to the above mentioned problem, we are proposing a unique solution to detect the copy-move image forgery. In proposed scheme the image is encrypted at client side and it will be decrypted at receiver end for authentication purpose. The image is segmented into non-overlapping blocks .Then statistical features are extracted and reduced to facilitate the measurement of similarities. Finally the Euclidian distance has been calculated and duplicate image blocks are identified after post processing. Experiments results demonstrate that our proposed method is able to detect multiple examples of copy-move image forgery and precisely locate the duplicated regions. We are currently working to improve detection in overlapping blocks.