Encryption of meaningful images into unidentifiable noise-like images can improve the security of images during storage and transmission. In this paper, a novel color image encryption method based on the lifting scheme and cross-component permutation (CIE-LSCP) is introduced. First, original image is divided into red, green and blue components, and then the three components are processed by a preprocessing strategy based on the lifting scheme (PSLS) to change the statistical distribution of the pixels. Second, a block-based cross-component permutation based on index vectors (BCPIV) is presented to divide three preprocessed components into blocks and perform the cross-component permutation operation on them, and three random matrices are utilized to determine the target component, target block and target pixel position of the current pixel to be moved, respectively. Subsequently, a multi stochastic diffusion based on random sequences (MSDRS) is developed to alter the pixel values of the permutated components, and finally a ciphertext image is gotten by merging the three components. Moreover, the SHA256 hash values of the plaintext image are used to obtain the initial parameters of the chaotic system, and the obtained chaotic sequences are applied in the image encryption process. Wherein the generated random sequences are highly reliant on the plaintext image, making the encryption scheme resistant to both known-plaintext attacks and chosen-plaintext attacks. Experimental results demonstrate that the proposed scheme has good security and effectiveness and can be applied for secure transmission of digital images over the Internet.