Cloud computing is one of the research areas where a large amount of studies and investigations are going on. With the advent of technology the security concerns and issues related to cloud computing are on the rise and thus they require a serious attention. In this article we have attempted a review of the cloud computing scenario; their characteristics, issues and possible solutions. The types of cloud computing can be classified as public, private and hybrid cloud computing. The services and characteristics of cloud computing are presented with a special mention to resource pooling, flexibility, accessibility, measurability and on demand cell service. The issues in cloud computing are provided with emphasis on storage security and distributed denial of service. Three methods viz data classification, layered frame work and Attribute Based Encryption (ABE) have been presented as the viable methods for improved security in cloud computing. Next the usage of cloud computing in malware detection is outlined. Finally general measures for improving security in cloud computing is discussed.