Abstract: A method for reducing data size of digital images is provided. The method includes receiving a Joint Photographic Experts Group (JPEG) encoded image, and performing an entropy decode on the image. The method also includes generating a fingerprint for each JPEG coefficient block, and processing the fingerprints to determine the identity of any duplicate or similar JPEG coefficient blocks. The method further includes generating metadata identifying the duplicate or similar JPEG coefficient blocks, and compressing non-duplicate and/or non-similar JPEG coefficient blocks. The method also includes transferring the metadata and the non-duplicate and/or non-similar JPEG coefficient blocks to a remote system.