Turning data into seemingly random noise
What you described is to use a so-called "stram cipher".

Stream ciphers output a random sequence of bytes for the same Key/IV pair.

The usual usage of stream ciphers is to XOR the data with the stream to obtain the encrypted data. You may want to follow the same approach by replacing the LSBs by the bits that were output by the encryption procedure (Data XOR Stream). The data is confidential then and can not be deciphered.

If you use some well-known algorithm like ChaCha, Salsa20 or AES-CTR you don't even have to hide the algorithm, you can tell your adversaries that you use this algorithm and they still can't read the enciphered data. You only need to keep the Key and the IV secret. Note: Using stream ciphers will hide any patterns that might be in the plaintext.

But you're not done here.
An attacker can't read the information but he can still alter it. So he can tamper with the data you encrypted and using some nice bit-flips he can alter the transmitted data in a malicous way (like changing numbers). So you wan't to use some sort of authentication mechanism (Message-Authentication-Code = MAC).

The best approach is to use AES-GCM or ChaCha-Poly1305 to get both: Confidentiality and Integrity. These modes will generate tags (usually 128 bits) which you'd store at the end of the data and you'll be able to verify that the data hasn't been tampered.