Cognitive Radio Networks (CRN), one of the emerging technologies in the wireless communication domain, is primarily used for spectrum sensing and proper allocation of the unused licensed bands to the secondary users without causing any interference to the primary user in a dynamic manner. However, security to the physical layer becomes a major problem here. This study gives a reliable solution to avoid the Physical User Emulation Attack (PUEA) by employing a Pseudo noise sequence (PN) based novel encryption technique. This study brings out the MATLAB simulated BER curves before and after using the proposed algorithm interpreting the error performance. The results prove that the proposed algorithm gives a reliable real time performance.