Microsoft Security, Compliance, and Identity Fundamentals (SC-900)Describe the capabilities of Microsoft EntraHard

A financial institution requires a high level of assurance for identity verification when onboarding new customers remotely. They want to enable users to present verifiable credentials issued by trusted third parties, such as government agencies, to instantly prove their identity during the onboarding process without sharing underlying sensitive data. Which Microsoft Entra capability supports this scenario?

  1. AMicrosoft Entra B2C
  2. BMicrosoft Entra Verified ID
  3. CMicrosoft Entra Self-Service Password Reset (SSPR)
  4. DMicrosoft Entra Identity Protection
Show answer & explanation

Correct answer: B. Microsoft Entra Verified ID

Microsoft Entra Verified ID allows organizations to issue and verify digital credentials based on open standards, enabling users to present verifiable proofs of identity (e.g., from government agencies) without sharing unnecessary personal data. This provides a high level of assurance for remote onboarding.

Why the other options are wrong

  • A. Microsoft Entra B2C is a customer identity access management (CIAM) solution for consumer-facing apps, but Verified ID is the specific technology for verifiable credentials within that context or standalone.
  • C. SSPR allows users to reset their own passwords; it is not an identity verification solution for onboarding.
  • D. Identity Protection focuses on detecting and remediating identity-based risks, not on decentralized identity verification with verifiable credentials.

Microsoft Entra Verified ID

A decentralized identity solution that allows organizations to issue and verify digital credentials, enabling individuals to control their identity data and securely prove information to relying parties.

  • Based on open standards (Decentralized Identifiers, Verifiable Credentials).
  • Users control their identity data.
  • Enables trusted, privacy-preserving identity verification.

Memory trick: Verified ID is like a digital passport you control, proving facts without revealing all.

More Describe the capabilities of Microsoft Entra questions