False-positive problem (FPP) is a one of the challenging tasks for the researchers. It authenticates the wrong owner to access the multimedia content. To overcome, the FPP problem, this paper introduces an efficient watermarking method based on the selection of highest entropy blocks. In this method, cover and watermark images are initially shuffled through Arnold transform. Then, the encrypted images are further processed by a 2-level discrete wavelet transform followed by singular value decomposition. The proposed method has been evaluated with geometrical, filtering, noise, and contrast adjustment attacks on the standard image datasets against five recently developed watermarking methods. The simulation results reveal that the proposed method outperforms the existing methods. © 2013 IEEE.