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Steganography is the art of passing information in a manner that the very existence of the message is unknown. The goal of steganography is to avoid drawing suspicion to the transmission of a hidden message. If suspicion is raised, then this goal is defeated. Unfortunately, there has not been any significant research into steganography, although it is a science that dates back to ancient times. The primary purpose of this project is to increase the sum of knowledge in the field of steganography. First of all, the use of digital steganography as an alternative to cryptography is suggested, especially in countries where cryptography is outlawed. An investigation into digital steganography is conducted, reviewing possible ways of embedding secret messages into digital media, like images and audio. Moreover, the design and implementation of a steganographic tool which embeds information into digital images is analysed extensively. Next, we experiment on steganography, trying to determine the limitations and flexibility of the steganographic tool implemented. For this purpose, various forms of attacks are applied on the steganographic tool, including the detection, extraction and disabling of a hidden message in a digital image. The results of the experiments are discussed in depth, stating clearly the weaknesses of the implemented steganographic tool.