The paper presents chaotic systems of difference equations that can ef
fectively encrypt information. Two classes of systems are presented: T
he first one (Class 1) is optimized for secure communications over rel
iable channels, while the second (Class 2) tolerates transmission nois
e at the expense of reduced parameter space size. The nonlinearity of
these systems is achieved by designing proper piecewise linear functio
ns and by using module operations. The utilization of additional nonli
near terms can improve the enciphering efficiency. The encrypting perf
ormance of the algorithms is evaluated analytically and by simulation
experiments. Also, the case of an imperfect transmission channel that
inserts noise in the transmitted signal is addressed and the design is
modified in order to offer reliable secure transmission over channels
with very small Signal to Noise Ratios.