As the mobile handheld gadgets geared up with fingerprint sensors, it turns out to be important to protect the private records of a user (i.e., fingerprint image) in the remote applications. Virtual image watermarking is the process of hiding statistics in any shape (text, image, audio and video) in original image without degrading its visual quality. Watermarking is carried out for copyright protection of the authentic records. In this work, we have introduced a new concept with current gray-scale image watermarking strategies. The novelty of the method is that first we have compressed the cover image with the usage of wavelet compression method before going for the encryption of the same. After that we have encrypted the cover and watermark image that is based on random key array generation, the usage of consumer key, a few constants and fixed operations. The mixture of all 3 steps collectively made the proposed approach extra robust and more secure in term of watermarking as compression itself is pretty endorsed for facts transfer and information protection. Also, watermark is extracted with reverse application of the same steps. Some output parameters are also calculated to reveal the accuracy and robustness of proposed method. Those parameters are Mean Square Error (MSE), Peak Signal to Noise Ratio (PSNR) and Correlation value between unique watermark image and extracted watermark image. The PSNR, MSE and Correlation values imply that the visual similarity of the signed and attacked images is right. Additionally, we've computed the behavior by clubbing the same watermark with different Cover images in terms of MSE, PSNR and Correlation Value and analyze the difference between authentic watermark and extracted watermark. The embedding algorithm is robust against common image processing operations. It is concluded that proposed algorithm is agreeably optimized, robust and show the development over different comparable said strategies.