Image encryption based on elliptic curves (ECs) is emerging as a new trend in cryptography because it provides high security with a relatively smaller key size when compared with well-known cryptosystems. Recently, it has been shown that the cryptosystems based on ECs over finite rings may provide better security because they require the computational cost for solving the factorization problem and the discrete logarithm problem. Motivated by this fact, we proposed a novel image encryption scheme based on ECs over finite rings. There are three main steps in our scheme, where, in the first step, we mask the plain image using points of an EC over a finite ring. In step two, we create diffusion in the masked image with a mapping from the EC over the finite ring to the EC over the finite field. To create high confusion in the plain text, we generated a substitution box (S-box) based on the ordered EC, which is then used to permute the pixels of the diffused image to obtain a cipher image. With computational experiments, we showed that the proposed cryptosystem has higher security against linear, differential, and statistical attacks than the existing cryptosystems. Furthermore, the average encryption time for color images is lower than other existing schemes.