UK consumers wary of AI but persist with risky password habits
Okta has published its annual Consumer Identity Trends report, revealing a continued gap between UK consumers' concerns about identity fraud and their ongoing digital security practices, particularly in the context of the growing influence of artificial intelligence (AI) on the digital landscape.
The research, drawing on both Okta's Auth0 platform data and results from a Statista survey covering the UK and several other countries, provides insight into how consumers perceive their personal security online, especially as AI becomes more embedded in digital services.
AI trust deficit
The report indicates that the majority of UK respondents remain sceptical about AI's role in handling personal information. In the UK, 54% of consumers stated they do not trust AI to manage their personal data. A significant portion, 42%, expressed a desire for full control over their information, with higher comparative caution than respondents in France or the Netherlands, where only 37% desired such control.
Only 11% of UK respondents expressed a preference for interacting with AI agents over humans, although among those favouring AI agents, 50% cited the appeal of avoiding human interaction as the main reason.
"This year's results highlight how AI is challenging our ability to trust the authenticity of digital interactions," says Stephen McDermid, EMEA CSO at Okta. "We're entering an era where we must ask not just who, but what we can truly trust. This new attack surface requires us to build a secure foundation for the AI era, shifting from a static to dynamic strategy that puts identity at the heart."
Password habits persist
Despite ongoing concerns about digital security, password management habits among UK consumers show room for improvement. Just 33% of UK respondents indicated they use a unique password for every personal account, while 50% admitted to re-using a small set of passwords according to account type or importance. Notably, 16% reported using the same password across all personal accounts, highlighting a potential vulnerability to cyber threats.
The prevalence of these habits persists even as 77% of UK consumers express concern about identity fraud. Fingerprint authentication is seen as the most secure method of identity verification by 79% of those surveyed in the UK, suggesting a broad appetite for biometric alternatives.
Trust and security priorities
Trust in brands and the perception of security continue to influence consumer behaviour around new account creation. Seventy-four percent of EMEA respondents said that choosing brands they trust was a primary factor when signing up for new digital services, surpassing the importance of product quality or value. Similarly, 72% considered security a deciding factor in their choice of services.
The findings point to a clear prioritisation of brand trust and data security, even before other considerations.
Fraudulent activity and MFA trends
Okta's data shows that fraudulent registration attempts remain a significant issue, particularly in retail and eCommerce. In 2024, nearly half (46.1%) of all registration attempts on Okta's Auth0 platform were flagged as fraudulent. Within the retail and eCommerce sector, 22.2% of login attempts were identified as malicious or related to potential account takeovers.
The report outlines trends in multi-factor authentication (MFA) misuse. While still prevalent, malicious MFA activity appears to be waning, with the rate of such incidents falling to 7.3% in 2024 from 12.7% the previous year.
The combination of persistent password reuse, concerns about AI, and trust in biometric authentication paints a complex picture of current consumer attitudes toward identity security. Although digital habits may be slow to change, the data reveals that concerns about fraud and desired security features weigh heavily in consumer decisions around online engagement.
