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Hi,

As Vincent said, the security of an  encryption algorithm must not be on
the algorithm itself, but  only on the secret key it  uses to create the
encrypted data from  the plain text. Otherwise, once  someone decides to
waste  a few  hours  to  unassemble your  algorithm,  all  the data  you
encrypted with it can suddenly be revealed for ever!

There is the md5 library available from

    http://lua-users.org/wiki/LibrariesAndBindings 

under Miscellaneous

This is a well known algorithm that should be more than enough for your
needs. 

Because it  is a known  algorithm, you know that  a lot of  people, some
with a lot of money and wits to  spend, have tried to crack it. Since it
is open source, others can check  its implementation and make sure there
are no flaws.

This is the power of open-source. :-)

Regards,
Diego.