Providing security to the data collected through the mobile/contextual sensors is necessary. In the concept of Internet of Things (IoT), we discuss one new Cryptography Algorithm X-REA for the Healthcare Devices. This article concentrates on the particular application of the IoT using AAL-Ambient Assisted Living in the field of medical by giving inconspicuous backing to frail and elderly individuals for their day by day life taking into account their environment and circumstance. IoT can meet this requirement by connecting elderly and fragile individuals to the corresponding group of caregivers. For IoT-based frameworks to achieve their maximum capacity, sound answers need to be given to the essential security questions emerged, especially those on thesafety of data being stored at backend side. This issue is solved by proposed X-REA algorithm which uses multi-key security concept to provide a high level of security. © 2016, International Journal of Pharmacy and Technology. All rights reserved.