The 3 Most Surprising Stats from Experian’s 2025 U.S. Identity & Fraud Report
Experian’s 2025 U.S. Identity & Fraud Report marks a decade of data on the trends shaping the fraud landscape. From the rise of AI to the fall of digital trust, the latest report shares why so many fraud leaders are scrambling for solutions that can power both effective fraud prevention and seamless customer experiences.
Based on insights from over 2,000 consumers and 200 businesses, the 2025 edition shines a light on the biggest challenges facing fraud leaders today — and the surprising takeaways that will shape businesses’ decision making through the rest of the year. Among the many findings, three statistics stood out for me:
Stat #1. 52% of Consumers Abandoned Onboarding Due to Friction
One of the most striking stats in the report is that more than half of consumers who considered abandoning a new account setup actually did, choosing a competitor instead.
Consumers today expect onboarding to be fast, intuitive, and secure. But many businesses still force users through friction-filled verification methods like passwords, CAPTCHAs, and security questions. These methods not only frustrate users but also fail to stop modern fraud threats. High-income earners and younger consumers (especially those aged 25–39) are particularly sensitive to poor onboarding experiences, often viewing them as a reflection of a brand’s overall digital maturity.
The Takeaway: First impressions matter more than ever. If your onboarding process doesn’t inspire confidence within the first few minutes or forces potential customers through a rigorous series of fraud checks, you risk losing business to competitors with more seamless and secure onboarding flows.
Stat #2. Only 37% of Businesses Use GenAI to Combat AI-Generated Fraud
Despite 72% of business leaders anticipating AI-generated fraud and deepfakes as top operational challenges by 2026, only 37% are currently using generative AI tools to detect and prevent fraud. This gap between awareness and action is surprising — and potentially dangerous.
AI is a double-edged sword in the fraud landscape. On one hand, it enables fraudsters to create sophisticated and scalable attacks, capable of bypassing traditional fraud detection solutions. On the other, it offers powerful tools for anomaly detection and predictive risk scoring. The rise of agentic AI — autonomous systems capable of decision-making — adds urgency to the need for robust safeguards.
The Takeaway: Fraudsters are embracing AI with open arms. Businesses that continue to lag on adoption risk being left in the dust by rapidly advancing attackers. But it’s not just about deploying the tech in any use case you can — businesses need to do so transparently and ethically. Consumers are wary of AI tools, with only 18% saying they “completely trust” them. To close this trust gap, companies must educate users, disclose how AI is used, and ensure accountability if and when things go wrong.
Stat #3. 16% of Consumers Are ‘Very Willing’ to Share Personal Data
At first glance, this seems low — until you realize it’s up from 9% in 2024, a solid rebound from a drastic fall last year. Despite all the headlines about scams, data breaches, and a reasonably high level of worry (57% of consumers report being concerned about online activity), consumers are coming back around to the idea of sharing their information with businesses.
Transparency on both sides is driving the shift. Consumers are increasingly open to sharing data when businesses clearly explain why it’s being collected and how it benefits them. This is especially true among younger demographics who value digital autonomy and expect personalized, secure experiences.
The Takeaway: Honesty presents opportunity. Consumers are willing to work with businesses to improve their online experience, given that the business is clear about what data is being collected and how it’s used and stored. Every interaction gives businesses a chance to earn trust through transparency, and those who embrace this mindset will build stronger relationships with their customers.
Fighting Fraud in 2025
These stats and the rest of the report reveal a digital ecosystem in flux — one where consumer expectations are increasingly convoluted, and businesses must find the right balance to meet them or risk falling behind.
But the report’s findings make one thing clear: the future of fraud prevention and identity management hinges on fraud leaders’ ability to build trust, provide transparency, and embrace technology needed to stop advanced fraudsters.
For more, explore the full report, then see how behavioral analytics can stop today’s most sophisticated fraud threats without sacrificing user experience.
