A novel system and method for transmitting and receiving secure data in a virtual private group (VPG). In one embodiment, a method for transmitting secure data from a first node to a second node includes accessing a group membership table on the first node, the group membership table having group membership information for each group, including a first group, to which the first node belongs and group security information associated with each group, wherein the first group has two or more members, and checking the group membership table to determine if the second node is a member of the first group. If the second node is a member of the first group, the method further includes encrypting a data packet using the group security information associated with the first group, processing the encrypted data packet, and transmitting the encrypted data packet from the first node to the second node.