Daon, the digital identity trust company, has launched a new workforce identity fraud prevention solution aimed at helping organisations build stronger trust across the entire employee lifecycle.
The solution combines several of Daon’s existing technologies — TrustX, xProof, xAuth, and xFace — to give organisations a unified framework for verifying candidate and employee identities. It covers key touchpoints including interview screening, remote onboarding, credential recovery, step-up authentication for high-risk actions, and ongoing reverification throughout employment. The system is also designed to generate phishing-resistant, passkey-based authentication directly from the verification process, with the aim of reducing account takeover risk and automating credential-related workflows.
The launch comes amid growing concern over AI-enabled fraud in workplace settings. Organisations are increasingly exposed to fabricated CVs, synthetic identities, and deepfake impersonation. According to research cited by IBM and Microsoft, an AI-generated phishing attack built in five minutes using five prompts is more than four times as effective as one crafted by a human. In one widely reported incident, a deepfake video call resulted in $25m in losses at engineering firm Arup. Analyst firm Gartner has predicted that by 2028, one in four job applicants could be fraudulent.
Daon’s new product is intended to address these risks at the points where workforce fraud exposure is greatest. It supports a wide range of use cases, including remote hiring, contractor access management, helpdesk recovery, payroll update requests, privileged access changes, and scheduled or risk-based reverification. The solution integrates with existing identity and access management (IAM) environments through standards-based APIs and OpenID Connect (OIDC) protocols, meaning organisations do not need to replace their current infrastructure.
Daon is a digital identity company whose technologies are used by organisations to verify and authenticate individuals across a range of industries including financial services, healthcare, retail, telecom, and cryptocurrency. Its suite of products applies biometric and document-based verification methods to help organisations manage identity risk.
The solution also reflects a broader shift towards layered, risk-driven identity models. Rather than relying on single-point authentication at login, organisations are increasingly looking to continuously evaluate identity signals across channels and touchpoints. Daon describes this approach as “Identity Continuity”, linking verification, authentication, credential recovery, and reverification into a single trust framework. The product is particularly suited to organisations with distributed or hybrid workforces, large contractor populations, regulated onboarding requirements, 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.”
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