Abstract: There is more to an image than what just meets the naked eye. Images are no longer just memories or records of the past. Image steganography has made sure of this. With the growing need to secure our valuable information and data, the concept of information hiding was born. And from the day of its invention, it has evolved significantly. It has evolved from cryptography to watermarking for the copyright protection to Steganography. This study describes how the covert communication takes place effectively by means of Pixel Indicator (PI) and Pixel Value Differencing (PVD) for multi-user. The former is employed in the color cover image to separate it into three planes and any one plane indicating the data channel through its last two bits of its intensity values to entrench and the later introduces the variable bit embedding in cover image. To increase the complexity, scrambling of secret data is introduced before embedding itself. Steganalysis results proved that this method is more resistive to chi-square attack. The proposed methods performance is appraised by manipulating MSE and PSNR and the results are tabulated.