The tool is intended to help people who may have suffered domestic abuse, or in cases where their sexuality could put them in danger.
However, Facebook stood firm on insisting people use "real names" in all but the most unusual situations. "We require people to use the name their friends and family know them by," the company said.
"When people use the names they are known by, their actions and words carry more weight because they are more accountable for what they say.
"We`re firmly committed to this policy, and it is not changing.
"However, after hearing feedback from our community, we recognise that it`s also important that this policy works for everyone, especially for communities who are marginalised or face discrimination."
Intense pressure
The company is also adding a new tool for reporting fake names, requiring anyone who is reporting another user to provide more context for their complaint.
Facebook said it received hundreds of thousands of reports of fake names every week.
"In the past, people were able to simply report a `fake name` but now they will be required to go through several new steps that provide us more specifics about the report," the company said.
"This additional context will help our review teams better understand why someone is reporting a name, giving them more information about a specific situation."
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