Stegomalware is a type of malware that utilizes steganography to evade detection. It hides amalicious code inside an innocuous cover medium. The cover medium could be of any type: image, audio, video or even network protocols. Stegomalware has also shown to be a highly effective method to bypass detection. This has led it to increase in popularity among cybercriminals. In this thesis, the aim is to shed light on these cyberattack techniques and show the potential harm that could impact organizations, people, and transmitted data over the network. This is done by exploring the following: state of the art, the use of malware steganography in cyberattacks, most used techniques, and how to defend against them. The prevalent tools used by cybercriminals along with various existing stegomalware prevention and detection techniques have been surveyed and studied. A practical implementation was done with the purpose of observing the technical process that takes place at the point of data hiding. In total two tests were done, with both using the Least Significant Bit (LSB) algorithmto achieve the desired results.