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Steganography which basically means covered writing, dates back to ancient Greece where common practice consisted of etching messages in wooden tablets. There are numerous steganographic methods that everyone is familiar with, ranging from invisible ink and Morse Code to a hidden message in the last letter of each word of a large body of text and spread across the full spectrum of a radio transmission. With computers and networks, there are many other ways of hiding information, such as:
Hiding files in "plain sight";
Covert channels between hackers and compromised systems;
Null ciphers;
Hidden text within certain web pages.
Let's take what constitutes a null cipher. If myself and another person had previously agreed that when we correspond by email that just the first letters of our paragraph's words would have meaning, we could decrypt the information that was truly meaningful.
Below is an example that I found on the on-line encyclopedia site, Wikipedia:
From:
News Eight Weather: Tonight increasing snow. Unexpected precipitation
smothers eastern towns. Be extremely cautious and use snowtires especially
heading east. The highway is not knowingly slippery. Highway evacuation
is suspected. Police report emergency situations in downtown ending near
Tuesday.
To:
Newt is upset because he thinks he is President.
There are a number of uses for steganography. One of the most widely used applications is for digital watermarking. A watermark historically is the replication of an image, logo or text on paper stock so that the source of the document can be at least partially authenticated. A digital watermark can accomplish the same function. A graphic artist for example, might post sample images on her Web site complete with an embedded signature so that she can later prove her ownership in case others attempt to portray her work as their own. There also is another method or use, which is currently being used by the cracker community. There are several examples that they are using steganography to embed messages for their groups within images that are posted to known web sites.
Steganography is significantly more sophisticated than the examples above suggest, allowing someone to hide significant amounts of information within image and audio files. These forms of steganography often are used in conjunction with cryptography so that the information is doubly protected, first it is encrypted and then hidden so that an individual has to first find the information and then decrypt it.
Below is a great website for more information on this subject:
http://www.petitcolas.net/fabien/steganography/stego_soft.html
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