A computer-implemented method and apparatus for embedding hidden data in an audio signal. An audio signal is received in a base domain and then transformed into a non-base domain, such as cepstrum domain or LP residue domain. The statistical mean manipulation is employed on selected transform coefficients to embed hidden data. The introduced distortion is controlled by psychoacoustic model to ensure the imperceptibility of the embedded hidden data. Scrambling techniques can be plugged in to further increase the security of the data hiding system. The present new audio data hiding scheme provides transparent audio quality, sufficient embedding capacity, and high survivability over a wide range of common signal processing attacks.