With the spread of digital data around the world through the internet, the security of the data has raised a concern to the people. Many methods are coming up to protect the data from going into the hands of the unauthorized person. Steganography and cryptography are two different techniques for data security. The main purpose in cryptography is to make message concept unintelligible, while steganography aims to hide secret message. Digital images are excellent carriers of hidden information. We propose a method of combining steganography and cryptography for secret data communication. In this paper, we propose a high-performance JPEG steganography along with a substitution encryption methodology. The approach uses the discrete cosine transform (DCT) technique which used in the frequency domain for hiding encrypted data within image. Experimental results show that the visual and the statistical values of the image with encrypted data before the insertion are similar to the values after the insertion thus reduces the chance of the confidential message being detected and enables secret communication. The effectiveness of the proposed method has been estimated by computing Mean square error (MSE) and Peak Signal to Noise Ratio (PSNR).