Abstract: With the increase in rate of unauthorized access and attacks security of confidential data is important. In this paper shape based data hiding algorithm is proposed for steganography as well as Steganalysis is done. In this algorithm, shape is taken to hide the data in an image. The secret information can be hidden only in the pixels which are available in the shape, instead of hiding secret information in whole image. After that at Receiver the data is extracted from shape. In this paper, Mean Square Error and Peak Signal Noise Ratio are calculated for different shapes.

Keywords: MSE,PSNR, LSB.