This paper proposed an image authentication technique based on a data compression and prediction mechanism in order to verify if a digital image was tampered with over the network. For image blocks, first is to produce special verification codes, and next, these codes and other information related to data recovery will be embedded into the image. When someone receives a suspicious image, he/she can check the integrity of embedded verification codes to judge whether the image was tampered with or not. Further, the recovery information extracted from images can be used to restore the tampered area. Experimental results showed the proposed scheme not only marks those tampered area effectively, but is able to recover them back to initial as similar as possible in order to reduce retransmitting probability and save network bandwidth.