3: The Future of Digital Identity: Verification and zero-trust security

Real-World Applications and Enterprise Benefits

Understanding the architecture of Verified ID is one thing; seeing how it transforms real business processes is another. This section explores concrete use cases and the tangible benefits organizations achieve when implementing this technology.

Enterprise Use Cases

1. Employee Onboarding and Access Control

Financial services firms, tech companies, and government agencies use Verified ID to streamline employee onboarding. Instead of manually verifying employment status, educational credentials, and background checks, HR departments issue a verifiable credential containing employment attributes. When an employee needs access to facilities, systems, or contractors, organizations can instantly verify employment status without querying multiple databases.

With multi-tenant architecture, HR operates in one tenant while different departments or subsidiaries operate in others—each can issue and verify credentials independently while maintaining a consistent trust framework.

2. Financial Services: KYC/AML Compliance

Banks and fintech companies face enormous KYC (Know Your Customer) and AML (Anti-Money Laundering) burdens. Verified ID accelerates this process dramatically. Instead of collecting documents and manually verifying identity, banks can request a government-issued verifiable credential that cryptographically proves identity attributes.

Face Check integration adds an additional layer: users must prove they are who their credentials say they are through liveness verification. This reduces fraud significantly while improving the customer experience.

3. Healthcare: Provider Credentialing

Healthcare providers need to verify physician licenses, certifications, and credentials before granting privileges. Instead of contacting licensing boards individually, hospitals can request verifiable credentials from professional licensing authorities. The multi-tenant model allows licensing boards (Tenant 1), healthcare verification systems (Tenant 2), and local hospital systems (Tenant 3) to operate independently while maintaining trust across the network.

4. Government: Citizen Services

Governments worldwide are exploring Verified ID for citizen services. A citizen might obtain a government-issued credential proving residency, citizenship, or identity status. When applying for services (licenses, permits, benefits), they present this credential instead of photocopying documents. Multiple government agencies can verify each other's credentials without direct integration.

5. Travel and Hospitality: Identity Verification

Airlines and hotels must verify identity and perform travel checks. Verified ID credentials containing government identity information, combined with Face Check for liveness verification, provide secure, fast identity verification at check-in. Multi-tenant architecture allows different airlines and hotel chains to operate separate systems while leveraging the same government-issued credentials.

The Business Case for Verified ID

Cost Reduction

Organizations typically spend significant resources on identity verification:

• Manual verification of documents ($10-50 per person depending on complexity)

• Support tickets from authentication failures ($100+ per incident)

• Fraud investigation and remediation (thousands per incident)

• Integration with multiple identity verification vendors

Verified ID eliminates many of these costs. Automated cryptographic verification replaces manual document review. Streamlined presentation flows reduce support requests. Face Check prevents fraud before it occurs. Organizations implementing Verified ID report 40-60% reduction in identity verification costs within the first year.

Speed and Efficiency

Traditional identity verification is slow. Document collection, manual review, and approval workflows create bottlenecks. Verified ID transforms this:

• Document collection: Eliminated (credential issuance happens once)

• Verification time: Seconds instead of hours or days

• User experience: One QR code scan instead of lengthy forms

• Approval workflow: Automated, cryptographically verified

Financial institutions using Verified ID for account opening report average approval times dropping from 24 hours to 10 minutes.

Security and Fraud Prevention

Verified ID is fundamentally more secure than traditional identity systems:

Cryptographic Proof: Unlike documents that can be forged, verifiable credentials are cryptographically signed by their issuer. Fraud detection is nearly impossible—either the signature is valid or it's not.

Face Check adds biometric verification, preventing account takeover attacks where an attacker has valid credentials but isn't the legitimate user. Organizations implementing Face Check see fraud incident reduction of 85%+ in high-risk scenarios.

Compliance and Audit

Regulated industries face constant audit requirements. Verified ID systems maintain comprehensive audit trails:

• When credentials were issued and by whom

• When credentials were verified

• Which claims were revealed during verification

• Biometric verification details and confidence scores

This creates a permanent, immutable record of identity verification activities—exactly what regulators demand.

The Future of Digital Identity

Verified ID represents a fundamental shift in how organizations approach identity. Instead of centralized, monolithic identity systems, we're moving toward decentralized, user-controlled identity with cryptographic verification. This shift has implications far beyond internal corporate processes:

• Interoperability: Credentials issued by one organization can be verified by any other, creating a unified digital identity ecosystem

• User Autonomy: Individuals control their identity data, choosing what to share and with whom

• Privacy: Organizations collect minimum necessary data, reducing privacy liability and regulatory burden

• Security: Cryptographic verification eliminates entire classes of fraud attacks

As this technology matures and adoption accelerates, we'll see government-issued credentials, professional certifications, and organizational identity attributes converge in a single, user-controlled wallet. The implications for business efficiency, security, and user experience are profound.

The Opportunity: Organizations implementing Verified ID today are positioning themselves as leaders in identity innovation. They're reducing costs, improving security, and creating superior user experiences. In five years, Verified ID won't be a competitive advantage—it will be a competitive necessity.

Fortytwo: Your Partner in Verified ID Implementation

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.

Fortytwo: Microsoft Entra Verified ID Service Partner

Available on Azure Marketplace for streamlined procurement and deployment

Verified ID on Azure Marketplace

Organizations looking to implement Verified ID solutions can now access Fortytwo's expertise directly through the Azure Marketplace. This offering provides:

Pre-Built Components

Reference architectures for common use cases

Rapid Deployment

Ready-to-use infrastructure as code

Consulting Support

Expert guidance on implementation and integration

Azure Native Integration

Seamless connection with existing Azure services

Through the Azure Marketplace, enterprises can evaluate, purchase, and deploy Verified ID solutions with minimal friction, leveraging Fortytwo's battle-tested implementations.

Conclusion

Microsoft Entra Verified ID, with its support for multi-tenant architectures, biometric verification through Face Check, and W3C standard compliance, represents the future of enterprise identity. By separating authentication tenants from issuance tenants and adding specialized services like Face Check, organizations can build scalable, secure identity systems that serve multiple business units while maintaining strict security boundaries.

The combination of cryptographic security, user control, and automated verification creates a fundamentally better approach to identity—one that benefits organizations and users alike. Organizations partnering with experts like Fortytwo to implement these solutions today will reap the benefits of reduced fraud, lower costs, improved compliance, and superior user experience.