Recs.
Updated
Specs
Pros
Pro Effective second level of protection
File Camouflage is an effective second level of protection. After encrypting and password protecting your sensitive information with AES, File Camouflage makes sure only your intended recipient knows there is even a file to decrypt by hiding it in a JPEG.
Cons
Con Encourages improper use of steganography
To hide a file in an image you need two things:
One, that the attacker cannot find the source image i.e. it has to be an image made by the user (preferably a photograph of a visually complex scene) and never put on the internet (using the pac_tron image would render the use of steganography moot, as the attacker can merely subtract a suspect image from a copy of the source image) and
two, that the file to be hidden is smaller than the cover image. With the best techniques today you can embed a file about 10% of the size of the cover image. The example in the doc hides a file 21,500% of the size of the cover image.
If you use steganography improperly you get no security, esp. as governments believe senior terrorists use steganography and thus search for it very, very, carefully.