State of Fraud 2025: The Trust Gap
Last week, Zach Pitts zeroed in on the financial impact of fraud for businesses — rising losses, increasing prevention costs, and the need for additional personnel. It’s no wonder that, as fraud becomes more frequent, consumers are worried about their safety online. But consumers’ concerns aren’t stopping businesses from expressing confidence in their approach to fraud prevention.
It’s something we refer to as the “trust gap” — the level of security consumers feel online, compared to businesses’ feelings and investments on fraud prevention. Experian has been monitoring it for years. In 2025, the trust gap was pronounced across the board, but wider in some industries than others.
What’s driving the divide, and what do businesses need to do to close it? Let’s talk about it.
The Challenge: Confidence gap between businesses and consumers
As attacks rise, consumers are wary of the digital world. 57% say they’re concerned about their online activity, and just 13% feel fully secure using new brands. They know threats are out there — 80% say they’re somewhat or very aware of online scams — and they’re on high-alert when sharing sensitive data as a result.
Businesses, on the other hand, don’t share consumers’ fear. 85% are confident in their fraud tools, even as losses climb. There’s a major disconnect between consumers’ concerns and businesses’ confidence.
The Driving Force: Different exposures, different ideas of security and privacy
83% of consumers say they expect businesses to address their security concerns, and it’s clear those expectations are going largely unfulfilled. Just 36% of consumers feel safer sharing personal information now than they did a year ago, and they’re only becoming more protective of their data — personal information is the type of data they’re most concerned about sharing online, even above financial data.
Even if businesses are effectively stopping fraud, there’s still a gap between what they know and what their customers see. For the most part, consumers only see when fraud prevention falls short; they’ve either been victims of fraud themselves, or they’re constantly reading stories about data breaches and new scam tactics. It makes them think: why should I trust your business over all the others? Is the answer buried in a privacy policy that few will truly read?
The Solution: Transparency
In a world of constant worry, trust is a competitive advantage. And trust is built through transparency. Consumers want to know why their data is being collected, how it’s being stored, and where it’ll be used. They don’t want to dig for answers, they want the businesses they interact with to be forthcoming about their data practices and proactive in protecting users.
Look to the payments industry for guidance. P2P payments apps have closed the trust gap — they’re the only industry whose consumer trust exceeds what’s expected of them. These payment apps do two big things right:
- They add the right amount of friction at the right time. Consumers feel protected but not intruded upon. Payments apps aren’t asking for loads of personal data unless an action necessitates it.
- They communicate. When asked how well certain types of businesses share why data is collected and how it’s being used, payment system providers and P2P payment apps were two of the top three identified by consumers (retail banks topped the list).
Right now, only 32% of consumers think businesses clearly explain data collection. Payments’ success should be a model for others to follow, and a guide to closing the gap.
Next week, Devon Smith will take the wheel for another breakdown; he’ll unpack the long-standing friction conundrum, and why it’s so difficult to simultaneously make life easy for consumers and hard for fraudsters. Subscribe to our blog to make sure you don’t miss it, and check out Experian’s 2025 U.S. Identity and Fraud Report for more insights on industry trends.
