The adoption of technology in almost all sectors allows us to showcase our digital credentials (digital copies of documents) to multiple parties, i.e., employers, education institutions, clubs, etc., and such credentials are valid. However, the need to verify digital credentials has become more important as the incidents of digital credentials fraud have increased recently.  

A report by the U.S. Federal Trade Commission revealed over 2.6 million cases of identity theft in 2023, which resulted in losses of over $10 billion. Additionally, a Forbes study shows that 70% of individuals lie on their resume, with 37% saying they lie frequently.

These alarming statistics highlight the increasing sophistication of certificate fraud and the need for robust solutions like verifiable credentials (VC). So, let’s discuss the growing need to verify digital credentials in a fraudulent world.  

What is Digital Credential Verification?  

From the introduction, you might have understood what we are talking about and why it is important. The digital credentials frauds are on the rise. And that’s why a solid digital credential verification process is needed.  

Digital credential verification refers to the process of authenticating the legitimacy of digital certificates, diplomas, licenses, professional certifications, identity, or other forms of credentials issued by organizations.  

Usually, organizations or people receiving digital credentials from other parties have to check the legitimacy of presented digital credentials on their own or by contacting the issuer. This process needs manual verification, takes time, and is prone to errors.  

Read: Academic Credential Verification Made Easy with Verifiable Credentials

Why Better Systems to Verify Digital Credentials Are Needed  

As stated, traditional digital credential verification processes are prone to error. The advent of sophisticated tools to forge certificates and identities along with the rise of diploma mills have made it very difficult for a person/organization to verify the legitimacy of a credential.    

In the UK, a senior manager within the National Health Service (NHS) was found guilty of falsifying his educational background to secure a high-paying role. Such incidents show the importance of implementing advanced systems for verifying digital credentials, as traditional methods may fail to recognize a forged credential.  

Here are more reasons that highlight the need for a better system to verify digital credentials: 

To Prevent Credential Fraud 

The first reason is obviously to prevent credential fraud. Such frauds undermine trust in professional and academic achievements. Implementation of robust verification systems in organizations can ensure that only legitimate qualifications are recognized. 

More Security 

Advanced verification methods like verifiable credentials created with cryptography technology provide tamper-proof solutions that prevent unauthorized alterations or forgeries of credentials. 

To Save Time and Costs 

Traditional credential verification is time-consuming and expensive. One has to blindly trust the presenter or contact the issuer organization to authenticate the legitimacy. A new system with VCs enables instant authentication and reduces administrative burdens. 

Building Trust in Digital Ecosystems 

A new, reliable credential verification system can increase trust among stakeholders by ensuring transparency and authenticity in professional interactions. 

Facilitating Global Mobility 

Digital credentials verified through global standards allow seamless recognition across borders, enabling professionals to work internationally without barriers. 

Ensure Regulatory Compliance 

Many industries require compliance with regulations like KYC (Know Your Customer) and AML (Anti-Money Laundering). With a better digital credential verification system, they can meet these legal requirements. 

All Digital Credentials are Not Verifiable Credentials 

While both digital credentials and verifiable credentials serve as electronic representations of qualifications, they differ significantly in terms of security and functionality: 

Feature	Digital Credentials	Verifiable Credentials
Verification Process	Often manual or dependent on issuers	Automated and cryptographically secure
Tamper Resistance	Prone to forgery	Tamper-proof due to cryptographic signatures
Portability	Limited	Globally accessible
User Control	Limited	Full control over sharing
Interoperability	Restricted	Compatible across platforms

Learn more: Verifiable Credentials: What Are They, How They Work, Their Importance, and Applications  

Advantages of Using Verifiable Credentials to Issue Digital Credentials 

VCs represent an innovative approach to securely verify digital credentials. These cryptographically signed documents are resistant to tampering and can be instantly verified by third parties. 

So, the issuance of digital credentials as verifiable credentials can make digital credentials verification simple, instant, and trustworthy. For instance, when a university issues a digital degree as a verifiable credential with a unique cryptographic signature, an employer or other academic institutions can verify digital credentials on that institute’s DID verifier. 

Does this seem confusing?  

Check this article to learn more: The Importance and Applications of Verifiable Credentials 

Here are the benefits of using VCs to issue digital credentials: 

Immutable  

VCs are issued and stored using cryptography blockchain technology. This ensures they cannot be altered once issued. So, the holder of verifiable digital credentials cannot create a forged copy of it.  

Instant Verification  

Verifiable credentials are issued using a unique DID (decentralized identifier), and employers or institutions can verify VCs within seconds by pasting the URL of the VCs on a publicly available verifier of the issuer. There is no need to contact anyone; instant verification.  

Also, You Can Read More: Key Differences Between Centralized Identifiers and Decentralized Identifiers 

Enhanced Privacy  

VCs also empower users to share only necessary information while keeping sensitive data private. This means if a holder wants to share his/her age without revealing their full birthdate, or they can selectively share the score of one subject without showing full certificates showing scores of other subjects.  

Global Interoperability  

Built on W3C standards and Open Badges 3.0, VCs are recognized worldwide. They facilitate cross-border mobility as they can be verified with a trusted method.  

User Ownership  

Verifiable credentials are decentralized, meaning credential holders have full control over their data and can decide how and with whom it is shared.  

Cost-Effectiveness  

By adopting verifiable credential solutions, organizations can cut operational costs and ensure security as well as accuracy. Plus, it is also cost-friendly for verifying parties as they can validate verifiable digital credentials immediately. 

Check: 14 Real-World Verifiable Credentials Use Cases & Applications 

EveryCRED’s Verifiable Credentials Solution

We offer verifiable credentials for various industries seeking secure and efficient verification processes. We use platform cryptography tech to issue tamper-proof credentials that are globally recognized and easy to verify using unique DID. 

If you are an organization looking for a robust system to verify digital credentials, we provide decentralized, verifiable digital credentials. It makes verification easy with the publicly available verifier we create for you using our Trust DID method. 

Contact us to learn how our expertise can solve your challenges. 

Conclusion

Modern technologies and AI have increased credential fraud and identity theft, making it difficult to verify digital credentials. Advanced technologies like VCs offer secure, efficient solutions that build trust across industries while safeguarding privacy and reducing costs.  Businesses must adopt these innovative systems to protect themselves from fraud and to increase credibility in their operations. As platforms like EveryCRED lead the way in transforming credential verification processes, organizations have a unique opportunity to embrace this future-proof technology.

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