diff --git a/moto/ec2/models.py b/moto/ec2/models.py
index c5d3c256c..940c412e7 100644
--- a/moto/ec2/models.py
+++ b/moto/ec2/models.py
@@ -1149,6 +1149,10 @@ class SecurityGroupBackend(object):
     def __init__(self):
         # the key in the dict group is the vpc_id or None (non-vpc)
         self.groups = defaultdict(dict)
+
+        # Create the default security group
+        self.create_security_group("default", "The default security group")
+
         super(SecurityGroupBackend, self).__init__()
 
     def create_security_group(self, name, description, vpc_id=None, force=False):
@@ -1212,11 +1216,6 @@ class SecurityGroupBackend(object):
             if group.name == name:
                 return group
 
-        if name == 'default':
-            # If the request is for the default group and it does not exist, create it
-            default_group = self.create_security_group("default", "The default security group", vpc_id=vpc_id, force=True)
-            return default_group
-
     def get_security_group_by_name_or_id(self, group_name_or_id, vpc_id):
         # try searching by id, fallbacks to name search
         group = self.get_security_group_from_id(group_name_or_id)
diff --git a/tests/test_cloudformation/test_cloudformation_stack_integration.py b/tests/test_cloudformation/test_cloudformation_stack_integration.py
index 0ca96db20..e73197361 100644
--- a/tests/test_cloudformation/test_cloudformation_stack_integration.py
+++ b/tests/test_cloudformation/test_cloudformation_stack_integration.py
@@ -207,12 +207,8 @@ def test_stack_security_groups():
     )
 
     ec2_conn = boto.ec2.connect_to_region("us-west-1")
-    security_groups = ec2_conn.get_all_security_groups()
-    for group in security_groups:
-        if "InstanceSecurityGroup" in group.name:
-            instance_group = group
-        else:
-            other_group = group
+    instance_group = ec2_conn.get_all_security_groups(filters={'description': ['My security group']})[0]
+    other_group = ec2_conn.get_all_security_groups(filters={'description': ['My other group']})[0]
 
     reservation = ec2_conn.get_all_instances()[0]
     ec2_instance = reservation.instances[0]
@@ -1078,7 +1074,6 @@ def test_security_group_ingress_separate_from_security_group_by_id():
     security_group1.rules[0].to_port.should.equal('8080')
 
 
-
 @mock_cloudformation
 @mock_ec2
 def test_security_group_ingress_separate_from_security_group_by_id():
diff --git a/tests/test_ec2/test_security_groups.py b/tests/test_ec2/test_security_groups.py
index e555bd694..b39ffac70 100644
--- a/tests/test_ec2/test_security_groups.py
+++ b/tests/test_ec2/test_security_groups.py
@@ -26,8 +26,9 @@ def test_create_and_describe_security_group():
     cm.exception.request_id.should_not.be.none
 
     all_groups = conn.get_all_security_groups()
-    all_groups.should.have.length_of(1)
-    all_groups[0].name.should.equal('test security group')
+    all_groups.should.have.length_of(2)  # The default group gets created automatically
+    group_names = [group.name for group in all_groups]
+    set(group_names).should.equal(set(["default", "test security group"]))
 
 
 @mock_ec2
@@ -41,6 +42,14 @@ def test_create_security_group_without_description_raises_error():
     cm.exception.request_id.should_not.be.none
 
 
+@mock_ec2
+def test_default_security_group():
+    conn = boto.ec2.connect_to_region('us-east-1')
+    groups = conn.get_all_security_groups()
+    groups.should.have.length_of(1)
+    groups[0].name.should.equal("default")
+
+
 @mock_ec2
 def test_create_and_describe_vpc_security_group():
     conn = boto.connect_ec2('the_key', 'the_secret')
@@ -59,7 +68,7 @@ def test_create_and_describe_vpc_security_group():
     cm.exception.status.should.equal(400)
     cm.exception.request_id.should_not.be.none
 
-    all_groups = conn.get_all_security_groups()
+    all_groups = conn.get_all_security_groups(filters={'vpc_id': [vpc_id]})
 
     all_groups[0].vpc_id.should.equal(vpc_id)
 
@@ -78,9 +87,10 @@ def test_create_two_security_groups_with_same_name_in_different_vpc():
 
     all_groups = conn.get_all_security_groups()
 
-    all_groups.should.have.length_of(2)
-    all_groups[0].name.should.equal('test security group')
-    all_groups[1].name.should.equal('test security group')
+    all_groups.should.have.length_of(3)
+    group_names = [group.name for group in all_groups]
+    # The default group is created automatically
+    set(group_names).should.equal(set(["default", "test security group"]))
 
 
 @mock_ec2
@@ -89,7 +99,7 @@ def test_deleting_security_groups():
     security_group1 = conn.create_security_group('test1', 'test1')
     conn.create_security_group('test2', 'test2')
 
-    conn.get_all_security_groups().should.have.length_of(2)
+    conn.get_all_security_groups().should.have.length_of(3)  # We need to include the default security group
 
     # Deleting a group that doesn't exist should throw an error
     with assert_raises(EC2ResponseError) as cm:
@@ -100,11 +110,11 @@ def test_deleting_security_groups():
 
     # Delete by name
     conn.delete_security_group('test2')
-    conn.get_all_security_groups().should.have.length_of(1)
+    conn.get_all_security_groups().should.have.length_of(2)
 
     # Delete by group id
     conn.delete_security_group(group_id=security_group1.id)
-    conn.get_all_security_groups().should.have.length_of(0)
+    conn.get_all_security_groups().should.have.length_of(1)
 
 
 @mock_ec2
@@ -125,7 +135,7 @@ def test_authorize_ip_range_and_revoke():
     success = security_group.authorize(ip_protocol="tcp", from_port="22", to_port="2222", cidr_ip="123.123.123.123/32")
     assert success.should.be.true
 
-    security_group = conn.get_all_security_groups()[0]
+    security_group = conn.get_all_security_groups(groupnames=['test'])[0]
     int(security_group.rules[0].to_port).should.equal(2222)
     security_group.rules[0].grants[0].cidr_ip.should.equal("123.123.123.123/32")
 
@@ -220,7 +230,7 @@ def test_get_all_security_groups():
     resp[0].id.should.equal(sg1.id)
 
     resp = conn.get_all_security_groups()
-    resp.should.have.length_of(2)
+    resp.should.have.length_of(3)  # We need to include the default group here
 
 
 @mock_ec2
diff --git a/tests/test_ec2/test_vpcs.py b/tests/test_ec2/test_vpcs.py
index 4fecf0974..21ebce826 100644
--- a/tests/test_ec2/test_vpcs.py
+++ b/tests/test_ec2/test_vpcs.py
@@ -41,13 +41,13 @@ def test_vpc_defaults():
 
     conn.get_all_vpcs().should.have.length_of(1)
     conn.get_all_route_tables().should.have.length_of(1)
-    conn.get_all_security_groups().should.have.length_of(1)
+    conn.get_all_security_groups(filters={'vpc-id': [vpc.id]}).should.have.length_of(1)
 
     vpc.delete()
 
     conn.get_all_vpcs().should.have.length_of(0)
     conn.get_all_route_tables().should.have.length_of(0)
-    conn.get_all_security_groups().should.have.length_of(0)
+    conn.get_all_security_groups(filters={'vpc-id': [vpc.id]}).should.have.length_of(0)
 
 
 @mock_ec2