This document discusses security issues in cloud computing and proposes a solution using authentication and encryption. It first describes common cloud deployment models and layers. It then discusses major security concerns like privacy, confidentiality and data integrity. The proposed solution uses EAP-CHAP for authentication at the user end and Rijndael encryption algorithm to encrypt user data before it is sent to the cloud. The encryption ensures security of data at rest and in transit, while EAP-CHAP handles authentication of users with the cloud service provider. Pseudocode for the Rijndael encryption/decryption process is also provided.