Daon launches workforce identity fraud prevention tool

Daon

Daon has unveiled a new product aimed at helping businesses build stronger identity assurance across the entire employee lifecycle, from initial candidate screening through to ongoing account management.

The new Workforce Identity Fraud Prevention solution brings together several of Daon’s existing technologies — TrustX, xProof, xAuth, and xFace — into a single framework. It is designed to verify candidate and employee identities during hiring and onboarding, generate phishing-resistant passkey-based authentication directly from the verification process, apply step-up authentication for higher-risk actions, and support low-friction reverification throughout employment.

The company says the combined approach is intended to reduce account takeover risk, automate credential-related workflows, and strengthen trust in remote and hybrid working environments.

The launch comes as organisations contend with a growing wave of AI-enabled fraud. Fabricated CVs, synthetic identities, and deepfake impersonation have made it increasingly difficult for businesses to rely on traditional methods of verification.

According to figures cited by IBM and Microsoft, an AI-generated phishing attack produced in five minutes using just five prompts is more than four times as effective as one crafted by a human. Gartner has also predicted that by 2028, one in four job candidates will be fake. A widely reported case saw engineering firm Arup lose $25m following a deepfake-enabled video call, illustrating the scale of risk now facing organisations.

Daon describes its solution as supporting a wide variety of workforce scenarios, including remote hiring, helpdesk recovery, contractor access, payroll update requests, and both scheduled and risk-based reverification. It integrates with existing identity and access management (IAM) environments via standards-based APIs and OpenID Connect (OIDC) protocols, meaning organisations can extend identity assurance without having to replace their current infrastructure.

Daon is a digital identity company whose technology is used across multiple sectors to verify and authenticate individuals. Its products are deployed across industries including financial services, healthcare, retail, telecoms, and cryptocurrency, where identity assurance intersects with fraud prevention and regulatory compliance.

The solution reflects a broader move in enterprise security away from single point-in-time authentication and towards layered, risk-driven identity models that evaluate signals continuously across channels. Daon refers to this approach as Identity Continuity, which links verification, authentication, credential recovery, and reverification into a unified trust framework. The company says the product is particularly relevant for organisations with distributed workforces, high contractor volumes, regulated onboarding processes, or significant exposure to helpdesk and account recovery fraud.

Daon president of the Americas Bob Long said, “Workforce onboarding no longer begins on day one of the job, but at the very first interaction. Organisations now have to think much more carefully about the authenticity of the resume, the face appearing on camera, the email or phone call requesting access, and whether each employee identity remains trustworthy over time. Point solutions for verification and authentication create gaps, and that’s where the fraud occurs. Businesses need a continuous model of identity assurance that follows each individual across the employment lifecycle.”

Long added, “Most forms of authentication deployed by businesses today were built for a very different threat environment. Today, the risk doesn’t end once an employee logs on in the morning. Organisations need assurance that every employee action is made by an employee authorised to take that action. That’s where continuous, layered identity becomes so important.”

Read the daily RegTech news

Copyright © 2026 RegTech Analyst

Enjoyed the story? 

Subscribe to our weekly RegTech newsletter and get the latest industry news & research

Copyright © 2018 RegTech Analyst

Investors

The following investor(s) were tagged in this article.