The enhancement in technology leads to an increase in cyber thefts. By relying solely on techniques such as cryptography and steganography, maintaining data security becomes more complicated. Hence, to improve that, data compression is critical in maintaining information security because it increases reliability and adaptability. The main purpose of this is to understand that it not only reduces storage space but also increases data transmission speed. In data compression, there are two techniques: lossy and lossless. In this analysis, DWT (Discrete Wavelet Transform) is used as a lossy compression technique for cover images, whereas Huffman coding is used as a lossless compression technique for encrypted messages generated by the RSA (Rivest-Shamir-Adleman) algorithm. These data compression techniques will save space and time, resulting in cost-effectiveness. Moreover, this paper shows the comparison of the hybrid technique (combination of one or more algorithms) with other techniques and calculates its performance using a few metrics.