A system and method for authentication of JPEG image data enables the recipient to ascertain whether the received image file originated from a known identified source or whether the contents of the file have been altered in some fashion prior to receipt. A unique hashing function is derived from a first section of image data contained in the JPEG compressed image in such a way that any changes subsequently made to the first section of image data is reflected in a different hashing function being derived from a signature string is then embedded into a next section of the image data. Since the embedding of a previous section's integrity checking number is done without modifying the JPEG bit stream, any JPEG decoder can thereafter properly decode the image.