A novel system and method for transmitting and receiving secure data in a
virtual private group (VPG). In one embodiment, a method for transmitting
secure data from a first node to a second node includes accessing a group
membership table on the first node, the group membership table having
group membership information for each group, including a first group, to
which the first node belongs and group security information associated
with each group, wherein the first group has two or more members, and
checking the group membership table to determine if the second node is a
member of the first group. If the second node is a member of the first
group, the method further includes encrypting a data packet using the
group security information associated with the first group, processing
the encrypted data packet, and transmitting the encrypted data packet
from the first node to the second node.