Daon Introduces Workforce Identity Fraud Prevention to Restore Trust Across the Employee Lifecycle

Fairfax, VA – May 5, 2026 – Daon®, The Digital Identity Trust Company, has announced the launch of a new solution designed to help organizations establish stronger trust across the workforce lifecycle, from candidate application screening and remote onboarding to credential recovery, step-up authentication, and ongoing account maintenance.

Workforce Identity Fraud Prevention combines several of Daon’s globally proven technologies, including TrustX, xProof, xAuth, and xFace, enabling organizations to verify candidate and employee identities during the interview lifecycle and onboarding processes, seamlessly generate phishing-resistant passkey-based authentication directly from the verification process, apply step-up authentication for high-risk actions, and support low-friction reverification throughout the employment lifecycle. The result is a more resilient workforce identity posture that helps reduce account takeover risk, automate credential-related workflows, and strengthen trust in remote and hybrid work environments.

As AI technology expands in reach and capability, organizations are facing a “trust recession”. Much of what was traditionally relied upon as authoritative can now be fabricated to alarming accuracy, including AI-generated resumes, synthetic identities, and deepfake-enabled impersonation. According to IBM and Microsoft, an AI-generated phishing attack created in 5 minutes with 5 prompts is more than 4 times as effective as one created by a human.

Recent incidents have shown just how real that risk has become, from deepfake video interviews used to secure employment to high-profile cases where a single manipulated call or video interaction has triggered millions in fraudulent transfers. In one widely reported case, a deepfake-enabled video call led to $25 million in losses at engineering firm Arup. Cases like these demonstrate how the nature of fraud is beginning to threaten the very foundations of trust in digital interactions, with Gartner predicting that by 2028, one in four job candidates will be fake. Daon’s new solution is built to address this challenge by applying high-assurance identity verification and continuous identity signals where workforce fraud risk is highest.

“Workforce onboarding no longer begins on day one of the job, but at the very first interaction,” said Bob Long, President of the Americas at Daon. “Organizations 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.”

Daon’s Workforce Identity Fraud Prevention solution is designed to support a broad range of workforce use cases, including candidate identity verification, remote hiring, helpdesk recovery, contractor access, privileged access changes, payroll update requests, and scheduled and risk-based reverification. It also integrates with modern IAM environments using standards-based APIs and OpenID Connect (OIDC) protocols, helping organizations extend identity assurance without replacing existing infrastructure.

The solution also reflects a broader shift in how enterprises are thinking about workforce security. Rather than relying on one-time authentication at login, more organizations are moving toward layered, risk-driven identity models that continuously evaluate signals across channels and touchpoints. By applying the Daon Identity Continuity approach to workforce identity, organizations can link identity verification, continuous authentication, credential recovery, and reverification into a unified framework of trust.

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

Daon’s solution is particularly relevant for organizations with distributed workforces, high volumes of contractors, regulated onboarding requirements, or elevated exposure to helpdesk and account recovery fraud. Applications include financial services, healthcare, retail, telecom, cryptocurrency, and other sectors where workforce identity convergence is closely tied to fraud prevention, compliance, and secure system access.

Daon’s Workforce Identity Fraud Prevention solution is available now. Learn more here.

About Daon
Daon, The Digital Identity Trust Company, delivers fraud-resistant, low-friction digital identity solutions that support onboarding and authentication at every trust point across the customer lifecycle. With industry-leading, cross-channel, biometric identity verification and multi-factor authentication, Daon enables its clients to empower each customer with a single, secure digital identity that balances maximum fraud prevention with ease of use. Delivered on robust, AI-powered platforms designed to counter even the most sophisticated AI-driven fraud, Daon’s innovative, privacy-first solutions eliminate key threat vectors and help ensure regulatory compliance while allowing businesses to offer a seamless, accessible customer experience that increases satisfaction and lowers costs. That is why Daon is trusted by global leaders in financial services, telecommunications, travel & hospitality, the public sector, and more to process hundreds of millions of digital identity transactions each day. Learn more at www.daon.com.