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In this paper, we propose a novel interpolation and a new reversible data hiding scheme for upscaling the original image and hiding secret data into the upscaled/interpolated image. This data hiding scheme considers the characteristics of the human visual system while embedding the secret data so that the existence of the secret data is not detected even after embedding a large amount of secret data. The proposed hiding scheme first divides pixel intensity ranges into groups and then adaptively embeds the secret data bits into the pixels based on the pixel intensity values. Therefore, the proposed scheme is able to maintain the visual quality of the stego-image. Experimental results show that the achieved PSNR by the proposed interpolation method is more than 30 dB for all the test images. Further, the results prove that the proposed data hiding scheme has superior performance than all the existing …