Network security is a very important parameter and is always been a challenge for the emerging technologies especially for high-speed data networks. The storage industry is sprouting at a faster pace with efficient and faster methods of data transfer and storage. Security should be camouflaged with these methods from the beginning in order to provide reliable and secure access to the users. Some known protocols in IP storage networks, which are reliable on IP networks, are SCSI over internet (iSCSI), Fiber channel over IP (FCIP), and internet fiber channel protocol (iFCP). These protocols use IP networks for data transport and it is necessary to provide a secure channel over these networks. As IP networks were not traditionally designed with security in mind, different mechanisms like IPSec are used for securing data at the network layer. Protocols like iSCSI do not provide per packet protection techniques. Since Storage Area Network (SAN) consists of block transfers between the clients and the server, encryption and cryptography need to be implemented for each block being transmitted and received along with the control data. Though block level security provides more reliability, it can be more time consuming and costly. In this research work, authors propose a novel security mechanism for IP storage networks that can be implemented with any protocol using object-based data transfers.