The proposed work describes optical transformations such as Fourier transformation and Fresnel transformation based encryption and decryption of images using random phase masks (RPMs). The encrypted images have been embedded in some secret cover files of other formats like text files, word files, audio files etc to increase the robustness in the security applications. So, if any one wants to send confidential documents, it will be difficult for the interloper to unhide the secret information. The whole work has been done in MATLAB®. © 2015 Copyright SPIE.