Please take a look at the updated post here. DO NOT USE THE CODE FROM THIS POST, WITHOUT ADDITION VALIDATION.

Out of the box it is only possible to secure your Azure Functions via Function Keys (API-Keys), which sometimes might not fit into your requirements. When using HttpTrigger we luckily have access to the current request and are therefor able to implement our own custom authentication/authorization methods. You could for example use jwt tokens to control authentication/authorization.

Here is an example code on how to validate jwt tokens and controlling access to your Azure Function.

CAUTION: You should not use this code in production. This is just a proof of concept and lacks a lot of validation!

using System;
using System.IdentityModel.Tokens.Jwt;
using System.Linq;
using System.Net;
using System.Net.Http;
using System.Security.Claims;
using System.Threading.Tasks;
using Microsoft.Azure.WebJobs;
using Microsoft.Azure.WebJobs.Extensions.Http;
using Microsoft.Azure.WebJobs.Host;

namespace FunctionTokenTest
{
    public static class TokenTest1
    {
        [FunctionName("TokenTest")]
        public static async Task<HttpResponseMessage> Run([HttpTrigger(AuthorizationLevel.Anonymous, "get", Route = null)]HttpRequestMessage req, TraceWriter log)
        {
            if (!req.Headers.Contains("Authorization"))
            {
                return new HttpResponseMessage(HttpStatusCode.Forbidden);
            }

            var headerValue = req.Headers.GetValues("Authorization");
            var bearerValue = headerValue.FirstOrDefault(v => v.StartsWith("Bearer ")) ?? String.Empty;
            if (String.IsNullOrWhiteSpace(bearerValue))
            {
                return new HttpResponseMessage(HttpStatusCode.Forbidden);

            }
            var bearerToken = bearerValue.Split(' ')[1];

            var principal = ValidateToken(bearerToken, "MYISSUER", "MYSCOPE");
            if (principal == null)
            {
                return new HttpResponseMessage(HttpStatusCode.Forbidden);
            }

            return new HttpResponseMessage(HttpStatusCode.OK) { Content = new StringContent($"Hello {principal.Identity.Name}") };
        }

        private static ClaimsPrincipal ValidateToken(string jwtToken, string issuer, string requiredScope)
        {
            var handler = new JwtSecurityTokenHandler();
            if (!handler.CanReadToken(jwtToken))
            {
                return null;
            }

            handler.InboundClaimTypeMap.Clear();

            Microsoft.IdentityModel.Tokens.SecurityToken token;
            var principal = handler.ValidateToken(jwtToken, new Microsoft.IdentityModel.Tokens.TokenValidationParameters()
            {
                ValidateAudience = false,
                ValidIssuer = issuer,
                ValidateIssuerSigningKey = false,
                SignatureValidator = (t, param) => new JwtSecurityToken(t),
                NameClaimType = "sub"

            }, out token);

            if (!principal.Claims.Any(c => c.Type == "scope" && c.Value == requiredScope))
            {
                return null;
            }

            return principal;
        }
    }
}

You can find a runnable example at https://github.com/BorisWilhelms/FunctionTokenTest