Arithmetic coding is an optimal data compression algorithm. Wit ten and Cleary proposed incorporating security into arithmetic coding. This has been an attractive proposal that could result in less overall processing overhead compared to the traditional method of compres sion followed by encryption. However a number of attacks on arith metic coding encryption systems have been published which demon strate the difliculty of successful combination of the two processes. Re cently Liu/Farrell/Boyd proposed a new scheme which claimed to be resistant against all the known attacks. In this paper we study the se curity of this scheme and show an attack that can recover the plaintext message and whose cost is 2 20 •