In modern communication systems, one of the most challenging tasks involves the implementation of adequate methods for successful and secure transfer of confidential digital information over an unsecured communication channel. Many encryption algorithms have been developed for protection of confidential information. However, over time, flaws have been discovered even with the most sophisticated encryption algorithms. Each encryption algorithm can be decrypted within sufficient time and with sufficient resources. The possibility of decryption has increased with the development of computer technology since available computer speeds enable the decryption process based on the exhaustive data search. This has led to the development of steganography, a science which attempts to hide the very existence of confidential information. However, the stenography also has its disadvantages, listed in the paper. Hence, a new method which combines the favourable properties of cryptography based on substitution encryption and stenography is analysed in the paper. The ability of hiding the existence of confidential information comes from steganography and its encryption using a coding table makes its content undecipherable. This synergy greatly improves protection of confidential information.