Method for embedding a covert message within a digital audio signal. The existence of the covert message is undetectable and the information content of the covert message can be further rendered unascertainable. Covert message data is embedded within a digital audio signal on an audio frame-by-audio frame basis. Covert message data is embedded either at a rate of one bit per frame or two bits per frame. The invention has uses including but not limited to watermarking digital audio signals, hiding data within a digital audio signal, increasing the channel capacity of a communications channel by placing multiple messages within each other, and generally increasing message robustness.