The sensitive and selective detection of endogenous glutathione (GSH) is of great significance due to its key role in physiological and pathological processes. Herein, we report a novel on–off–on transferrin (Tf)-coated gold nanocluster (AuNCs@Tf) with low toxicity, good stability and intense red fluorescence which can enter living cells and is mainly located in lysosomes. In addition, the fluorescence of AuNCs@Tf is quenched by Cu2+, indicating its sensitivity to Cu2+ with a detection limit of 0.23 μM at pH 4.5. Interestingly, we found that the quenched AuNCs@Tf–Cu2+ system only has a special affinity for GSH with a detection limit of 2.86 μM so that invisible AuNCs@Tf–Cu2+ can be gradually illuminated by endogenous GSH in the lysosomal environment of tumor cells with increase in time. More excitingly, the AuNCs@Tf–Cu2+ system can illuminate tumor cells rather than normal cells, resulting in its successful application in cancer cell recognition, which implies its great potential application in cancer diagnosis. Moreover, the AuNCs@Tf was also applied in Cu2+ strips and encryption/decryption of information.