In today’s world, digital identity verification is key to security. As we connect more online, businesses and individuals need a safe way to confirm identities. It helps prevent fraud, protect data, and build trust in digital interactions. In 2023, identity theft became a major problem, making up 19.2% of all complaints to the Federal Trade Commission (FTC).

The FTC’s Consumer Sentinel Network received over 5.39 million reports, with fraud accounting for 48% and identity theft for 19%. Credit card fraud was the most common type of identity theft, with about 426,000 cases reported. While this is a 5% drop from 2022, it is still 53% higher than in 2019. Data breaches also spiked, rising from 1,801 in 2022 to 3,205 in 2023.

Identity fraud doesn’t just affect individuals. A TransUnion study found that 13.5% of online account creation attempts in 2023 were likely fraudulent. In the U.S., synthetic identity fraud in auto loans, credit cards, and personal loans grew by 63%, reaching $3.1 billion. Scam-related identity fraud caused $23 billion in losses in 2022. These statistics highlight the urgent need for stronger digital identity verification to fight fraud.

Let’s explore why digital identity verification matters more than ever and how fraudsters exploit weak security. This blog covers the best solutions to build a secure and trustworthy digital ecosystem.

Why Digital Identity Fraud Threatens Education & Professional Licensing

Digital identity fraud is a serious threat to education and professional licensing.

Rise of Fake Credentials

Fake diplomas and fraudulent credentials are increasing. Advanced AI tools can now create realistic fake documents that look like the real thing. This makes it harder for universities, employers, and licensing bodies to tell the difference between genuine and fake qualifications.

Impact on Institutions

Digital identity fraud creates big problems for educational institutions:

• Reputation Damage – Schools linked to fake credentials lose trust and credibility.
• Legal Issues – Failing to detect fake diplomas can lead to lawsuits and financial penalties.
• Accreditation Risks – If fraud becomes a problem, accrediting agencies may question the school’s credibility and even revoke its accreditation.

In short, digital identity fraud weakens the value of educational qualifications and puts universities at risk of losing trust, funding, and their ability to operate.

What Is Digital Identity Verification?

Digital identity verification uses advanced technology to confirm the authenticity of academic degrees and professional certifications. One of the most effective methods is blockchain, which provides a secure and tamper-proof way to verify credentials.

How Blockchain Verifies Credentials

Blockchain-based verification records digital credentials on a secure, decentralized ledger. Schools, universities, and professional organizations issue these credentials, which are cryptographically signed and stored on the blockchain. This makes them permanent, unchangeable, and easy to verify. Employers and other stakeholders can check these credentials instantly without needing third-party verification.

Why Blockchain is Better Than Physical Documents

Blockchain offers several advantages over traditional paper-based verification:

• Tamper-Proof – Once stored on the blockchain, credentials cannot be altered or faked, ensuring their authenticity.
• Instant Verification – Employers and licensing bodies can verify credentials instantly, eliminating long wait times.
• Stronger Security – Blockchain reduces reliance on central authorities, preventing fraud and giving individuals control over who can access their credentials.

Blockchain-based digital identity verification is a faster, safer, and more reliable way to confirm academic and professional qualifications compared to traditional methods.

4-Pillar Need for Enhanced Verification

Improving verification processes in education and professional licensing is essential to solving key challenges.

Stopping Fake Documents

Fake diplomas and transcripts are a growing problem. Many people forge documents to get into universities or land jobs. Strong verification systems can prevent this fraud and protect the credibility of institutions.

Protecting Against Cyberattacks

Cyberattacks on schools and universities are rising. In 2022, the education sector faced 44% more cyberattacks than the previous year, with about 2,300 attacks per week. Better security measures can help protect student and institutional data.

Following Global Compliance Rules

Schools and organizations must follow strict data protection laws. The General Data Protection Regulation (GDPR) requires institutions dealing with EU citizens’ data to have strong security measures. The World Wide Web Consortium (W3C) has also created standards for digital credentials to ensure safe and consistent verification worldwide.

Making Global Verification Easier

Students and professionals often move across countries for education and jobs. Traditional document checks take time and slow down this process. Digital verification systems provide instant and reliable validation, making it easier for people to study and work internationally.

How Verifiable Credentials Work: EveryCRED’s Architecture

EveryCRED’s verifiable credential system ensures a secure and user-friendly way to manage digital identities.

Three-Step Process

1. Issuance – Schools, universities, and licensing boards issue digital credentials. These credentials are sealed and stored on a blockchain, making them tamper-proof.
2. Storage – Individuals receive and store their credentials in secure digital wallets, giving them full control over their data.
3. Verification – Employers and other verifiers can instantly check credentials using EveryCRED’s public Decentralized Identifier (DID) registry, making the process fast and reliable.

Advanced Security Features

• EveryCRED EVRC DID Method – EveryCRED uses a unique decentralized identity system built for education. This system securely manages digital identities and ensures trust between issuers, holders, and verifiers.
• Zero-Knowledge Proofs (ZK-Proofs) – EveryCRED protects user privacy by allowing individuals to verify their credentials without revealing unnecessary personal details.

By combining blockchain, decentralized identity, and privacy-focused technology, EveryCRED provides a secure and efficient way to manage and verify educational and professional credentials.

For More Information: Digital Identity Verification with Verifiable Credentials

5 Strategic Benefits for Education Institutions

Implementing verifiable credentials gives educational institutions several key benefits:

Fraud-Proof Diplomas and Certificates

Blockchain technology makes digital diplomas and certificates tamper-proof. Once recorded, no one can alter or forge them, ensuring their authenticity.

Faster Credential Issuance

Switching from manual to digital processes speeds up credential issuance by up to 90%. Automated systems help institutions issue certificates quickly and efficiently.

Compliance with Global Standards

Digital credentials follow international standards like W3C’s Verifiable Credentials framework. This ensures credentials are recognized and accepted worldwide.

Lower Verification Costs

Blockchain-based verification reduces traditional verification costs by around 60%. Automation cuts down administrative work and eliminates the need for manual checks.

Better Learner Mobility

Students can easily share and verify their digital credentials anywhere. This makes it simpler for them to apply for jobs or further education across borders.

By adopting verifiable credentials, institutions improve security, efficiency, and global recognition of their certifications.

Real-World Applications in Target Industries

Using verifiable credentials in different sectors helps solve major challenges:

Universities: Stopping Fake Degrees

Universities use blockchain to prevent fake diplomas. For example, the University of St. Gallen in Switzerland secures academic credentials with blockchain, making them easy to verify and hard to fake.

Edtech Platforms: Secure Online Course Certificates

Edtech platforms issue digital certificates for online courses using blockchain. These credentials are tamper-proof and instantly verifiable, adding credibility to online learning.

Licensing Boards: Instant Professional License Checks

Medical and nursing boards use blockchain for real-time license verification. This ensures that only qualified professionals can practice, improving trust and safety.

Corporate Training: Fraud-Proof Skill Certification

Companies use blockchain to certify employee skills and training. These digital credentials are secure, easy to verify, and instantly shareable, strengthening workforce credibility.

By adopting verifiable credentials, these sectors improve security, reduce fraud, and speed up verification.

EveryCRED’s Compliance Framework

EveryCRED follows international standards to ensure secure and reliable digital credentials.

Compliance with Global Standards

EveryCRED meets key industry regulations, including:

• W3C Verifiable Credentials (VC): Ensures credentials work across different platforms, following global guidelines from the World Wide Web Consortium.
• General Data Protection Regulation (GDPR): Protects personal data and ensures privacy in compliance with EU laws.
• NIST SP 800-63-3: Follows U.S. government standards for identity proofing and secure authentication.

Transparent and Audit-Ready

EveryCRED uses blockchain to create tamper-proof records of all credentialing activities. This allows institutions to maintain compliance easily, providing a clear and unchangeable audit trail for regulators.

By following these standards and keeping secure records, EveryCRED builds trust in digital credentialing worldwide.

Conclusion

As education and professional licensing go digital, the need for secure digital identity verification is more important than ever. Fraud and cyber threats are rising, making traditional credentialing methods less reliable. Institutions need a smarter, safer way to verify qualifications.

EveryCRED provides a powerful solution with blockchain-based verifiable credentials. This technology ensures credentials are secure, easy to verify, and globally recognized. It eliminates fraud with tamper-proof digital credentials, enables instant verification to save time and resources, ensures compliance with global standards like W3C, GDPR, and NIST, integrates seamlessly with universities and licensing boards, and enhances mobility for students and professionals worldwide.

The future of education and licensing depends on secure digital credentials. EveryCRED helps institutions prevent fraud, streamline verification, and support global learning.

Visit EveryCRED to see how it can transform your credentialing process today.