Why do you need verifiable credentials?
Microsoft Entra Verified ID is a verifiable credential service that lets organizations issue, store, and verify digital credentials using cryptographic proof. Users hold credentials in a digital wallet, such as Microsoft Authenticator, and share only the claims required for verification. It helps organizations verify identity using verifiable credentials instead of relying only on passwords, security questions, or repeated manual checks, and it is a revolutionary approach to identity verification built on W3C standards for verifiable credentials.
Unlike traditional identity systems where a central authority (like your bank or employer) maintains your information, Verified ID empowers individuals to hold their own credentials, much like a physical passport, but digital, cryptographically secured, and instantly verifiable.
What are verifiable credentials?
Verifiable credentials are digital attestations of identity attributes your name, qualifications, licenses, or any claim an authority wants to make about you. Here’s what makes them different:
User-Controlled
You hold credentials in your digital wallet, not in a company database.
Cryptographically Signed
Issued and signed by a trusted authority, tamper-proof and verifiable.
Selective Disclosure
Share only the claims you need—not your entire identity profile.
Privacy-Preserving
Verifiers see proof of your claims, not your personal data.
The Entra Verified ID workflow
The Verified ID workflow has three steps: an issuer creates a credential, the user stores it in a wallet, and a verifier checks the credential’s signature and status when proof is needed.
1. Issuance: Creating trusted credentials
An authority (employer, government, financial institution) issues a verifiable credential to a user. This credential contains cryptographic proof of authenticity and can include claims like:
- Employment status and role
- Educational qualifications
- Professional licenses
- Government-issued identity attributes
- Biometric data (photographs, fingerprints)
The user receives this credential in their Microsoft Authenticator mobile app, where it’s stored securely in their digital wallet. The credential is bound to their device and can only be used when they approve it.
2. Verification: Proving your identity
When an organization needs to verify your identity, they request specific credentials from your wallet. Instead of sharing your entire identity, you share only what’s necessary. The verification happens in real-time through a secure exchange, and the verifier receives cryptographic proof that your credentials are authentic and haven’t been revoked.
3. Trust: Building zero-trust security
Each credential is cryptographically signed by its issuer. A verifier can independently confirm authenticity by checking the digital signature against the issuer’s published public key. This enables genuine zero-trust: you don’t need to trust the verifier to protect your data—they can only see what you explicitly share, and they can verify authenticity without calling back to the issuer.
The Power of Standards: Verified ID is built on W3C standards (Verifiable Credentials Data Model), ensuring interoperability across platforms and ecosystems. This means your credentials can be used across multiple organizations and systems.
Why organizations are adopting Entra Verified ID
Companies across finance, healthcare, government, and technology are implementing Verified ID because it solves real business problems:
- Reduced Fraud: Cryptographic proof makes impersonation nearly impossible
- Faster Onboarding: Eliminate lengthy identity verification processes
- Lower Costs: Reduce identity verification overhead and support tickets
- Improved Compliance: Maintain audit trails and meet regulatory requirements
- Better User Experience: Simple scanning with Microsoft Authenticator replaces complex forms
- Data Minimization: Collect only what you need, reducing privacy liability
Real-World Impact: In suitable workflows, organizations can reduce verification time and support overhead by replacing manual checks with reusable, cryptographically verifiable credentials.
Fortytwo: Microsoft Verified ID service partner
Fortytwo is a recognized partner of Microsoft, specializing in identity and access management solutions. As a Microsoft Entra Verified ID Service partner, Fortytwo brings deep expertise in designing and implementing Verified ID solutions across enterprise organizations.
Fortytwo’s experience includes:
- Multi-tenant Verified ID architecture design and implementation
- Integration of Face Check for biometric verification
- Credential lifecycle management and issuance workflows
- Compliance and audit trail implementation for regulated industries
- Cross-tenant credential verification strategies
- Custom credential types for industry-specific requirements
Fortytwo works with organizations to design identity solutions that fit their specific business needs while leveraging Microsoft’s enterprise identity platform.
Read more about Fortytwo as Microsoft Entra Verified ID Service Partner
Verified ID on Azure Marketplace:
Available on Azure Marketplace for streamlined procurement and deployment. Talk to us about implementing Microsoft Entra Verified ID in your organization.
Next in this series
Multi-tenant identity architecture at enterprise scale. We’ll tackle the real challenge organizations face: managing identity verification across multiple business units, subsidiaries, or service offerings while maintaining security and compliance. How do you build identity infrastructure that scales without compromising isolation?