Provided is a method for authentication and verification of a user in a virtual world (VU) based upon such criteria as the physical location of a user in the real world and the logical location of the user's avatar in the VU. The disclosed technology combines physical and application aspects of security to enhance security options within virtual environments. In addition to traditional credential-based authentication, physical constraints corresponding to the real world and logical locations in a VU are employed, wherein an authentication server requires each component to be in the proper association state, location or proximity before authenticating a user. Further, the disclosed technology provides for the termination of a user's authentication if the user moves from an approved physical or VU location to an unapproved location. Techniques are provided to track a user's credentials and real-time physical and logical location of a user.