A system and method for increasing the capacity of a Multiple-Input Multiple-Output (MIMO) system at desired user's locations and reducing the capacity at locations, other than that of the desired user, while also providing secrecy. Knowing the channel coefficient between each transmitter and receiver antenna pair at the transmitter, the method of the present invention calculates the artificial signal that minimizes the Euclidean distance between the desired and received data symbols if the precoding/combining matrix pair from the set that has the minimum Euclidean distance to the singular value decomposition (SVD) of the channel matrix is used for transmission and reception. The artificial signal may be fed to the precoder, instead of the actual desired data symbols, or may be transmitted directly to reduce computational complexity, power consumption and processing delay if the hardware configuration allows.