In this Small Business Innovation Research Phase I research project, Mission Research Corporation proposes to develop algorithms and implementation techniques for detecting steganography (i.e., hidden information) in digital imagery files. Although considerable research has been performed on developing novel steganographic methods, very little work has been performed on the important topic of detecting the presence of steganography in digital images. The fundamental goal of this SBIR research is to develop and refine techniques for detecting steganography and implement these techniques into user friendly software products. The proposed Phase 1 research will consist of identifying the most commonly used steganography techniques, determining image characteristics/statistical measures that can be calculated and used to identify the presence of steganography in various image formats (including lossless, lossy, and palette formats), developing an artificial neural network decision model, and implementation/testing of the results using a prototype Matlab algorithm. This research will provide valuable tools and methodologies that would enable system administrators to monitor files that may be leaving (or entering) a site on the Internet or from a secure facility, with the objective of determining the probability that such files contain hidden information.<br/><br/>There are a wide variety of potential users of steganography detection techniques. Computer systems administrators at US government installations would likely be among the first to benefit from development of these steganography detection techniques. Due to the sensitivity of tremendous amounts of data handled by the US government, tools that would ensure security of electronic traffic through their many worldwide sites would be a valuable asset. In addition, are many other establishments including private businesses, law enforcement agencies, and health care facilities that are also very concerned with ensuring that unauthorized transfer of information does not occur to or from their facilities.