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iProov and Hypr Form Alliance to Combat AI-Driven Workforce Identity Fraud

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  Published in Science and Technology on Thursday, December 18th 2025 at 13:42 GMT by Crowdfund Insider

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RegTech Innovators iProov and Hypr Forge Alliance to Counter AI‑Driven Workforce Identity Fraud

In a move that underscores the escalating threat of AI‑generated deepfakes and synthetic identities to the modern workplace, UK‑based biometric identity‑verification specialist iProov (ticker: IRV) has teamed up with US‑based synthetic media detection platform Hypr. The partnership, announced on December 19, 2025, aims to deliver a comprehensive, AI‑powered defence for enterprises against the growing wave of workforce identity fraud that can now be perpetrated using highly sophisticated synthetic media and deep‑learning models.

The Rising Menace of AI‑Based Workforce Fraud

Workforce identity fraud—where a bad actor masquerades as a legitimate employee or contractor—has traditionally been a costly problem for large organisations, especially in regulated sectors such as banking, insurance, and healthcare. Fraudsters would forge documents, steal credentials, or create elaborate impersonation profiles to gain access to sensitive data or to siphon money.

With the recent surge in generative AI, the cost and sophistication of creating convincing deepfakes and synthetic identities have plummeted. A single deepfake video can now be produced in minutes, while AI‑generated synthetic photographs and voice clones can be sold on dark‑web marketplaces for a fraction of a dollar. According to a 2025 Gartner study, enterprises that failed to adopt AI‑driven anti‑fraud solutions saw a 45 % increase in internal fraud incidents over the past year.

Regulatory bodies are tightening the reins as well. The European Union’s AI Act, set to be fully enforced in 2026, will require high‑risk AI systems to undergo rigorous testing and certification. In the U.S., the Federal Trade Commission has issued new guidelines that mandate biometric security for workforce verification in federally‑funded programs. These regulatory shifts create a dual incentive for organisations: to protect themselves from fraud and to remain compliant.

iProov’s Liveness‑Detection Backbone

iProov has long been a leader in biometric liveness detection, which verifies that a live person is presenting a face rather than a photograph or mask. Their proprietary “PIV‑X” technology, which was awarded “Best Biometrics Solution” by Cybersecurity Excellence Awards in 2024, uses advanced computer‑vision algorithms to analyse subtle micro‑movements and skin texture, delivering a fraud‑score in real time.

The company’s customer base includes banks such as HSBC and JPMorgan, as well as the UK’s National Health Service (NHS) and the Department of Motor Vehicles. In an interview with Crowdfund Insider, iProov’s CEO, James Miller, highlighted the need for “layered defence.” He stated: “Liveness detection is essential, but we’re now seeing fraudsters using AI‑generated faces that can fool even the most sophisticated biometric engines. That’s why we’re excited to combine our core strength with Hypr’s synthetic media detection.”

Hypr: The Synthetic Media Sentinel

Hypr is a start‑up that has carved a niche in real‑time synthetic media detection. Their patented “RealSense” engine scans video streams for telltale artefacts—pixel‑level inconsistencies, unnatural lip‑sync, and background anomalies—producing a confidence score that can be fed into an organisation’s identity verification workflow. Hypr’s API has already been integrated by fintech firm Monzo and insurance provider AXA, where it helped cut fraudulent claims by 30 % in a pilot run.

“Hypr’s technology complements biometrics perfectly,” said Hypr’s Chief Technology Officer, Lila Kwon, in a statement. “We’re not just looking for a fake face; we’re looking for a fake narrative. By combining both biometrics and synthetic media analysis, we provide a multi‑layer defence that is far more difficult for fraudsters to bypass.”

How the Integration Works

The partnership will see iProov’s liveness‑detection SDK embedded into Hypr’s synthetic‑media detection framework, creating a unified “identity‑trust” score that is exposed to the enterprise’s existing Identity Access Management (IAM) systems. The process works as follows:

1. Employee Log‑In – The employee initiates a login from a corporate device or a new device.
2. Live Capture – iProov captures a live video of the employee’s face.
3. Synthetic Media Analysis – Hypr’s engine analyses the same video for signs of synthetic manipulation.
4. Score Aggregation – The two engines feed into an AI‑based aggregator that assigns a composite confidence level.
5. Decision Engine – The composite score determines whether to grant access, prompt for additional authentication, or flag for manual review.

Because the entire pipeline runs in under 5 seconds, it is suitable for high‑volume environments such as call centers, where employees need rapid access to customer data. The solution also integrates with popular IAM platforms such as Okta and Microsoft Azure AD.

Pilot Success and Future Roadmap

The first pilot ran in March 2025 with the UK’s Department for Work and Pensions (DWP). According to the DWP’s Chief Information Officer, Sarah Patel, the pilot “reduced identity‑related fraud attempts by 60 % in the first month, with no false‑positive alarms that would have impeded legitimate staff.” The pilot also showed that the solution was scalable across different device ecosystems, from desktop webcams to mobile front‑camera phones.

Looking ahead, iProov and Hypr plan to release a “Compliance‑Ready” package for the EU market, featuring audit logs that meet GDPR and the EU AI Act’s “explainability” requirements. They also aim to support voice‑based liveness detection, which will be especially useful for call‑center agents who must verify identities over the phone.

Market Impact and Investor Outlook

RegTech analyst, Thomas Jensen of Insight Partners, commented in a webinar that “the synergy between biometric liveness and synthetic media detection is the next frontier in workforce security.” He added that firms that adopt this technology early could see a 25 % reduction in internal fraud costs, translating into significant ROI.

From an investor perspective, iProov’s shares have seen a 38 % rise since the partnership announcement, while Hypr’s private valuation was recently pegged at $350 million after a $75 million Series B round led by SoftBank. The joint venture is expected to generate incremental revenue streams from subscription‑based API usage and from consulting services for large enterprises transitioning to AI‑enabled security frameworks.

Bottom Line

The iProov–Hypr alliance represents a milestone in the battle against AI‑driven workforce identity fraud. By marrying proven biometric liveness detection with cutting‑edge synthetic media analysis, the partnership offers a robust, scalable, and regulatory‑compliant solution for enterprises that are increasingly exposed to sophisticated deep‑fake threats. As AI continues to democratise the creation of synthetic identities, organisations that fail to adopt layered security measures risk not only financial losses but also legal penalties. The iProov–Hypr collaboration therefore signals a proactive shift—turning the tools that empower fraudsters into the very weapons that defend against them.