AI and Identity Fraud: What It Means for Data Professionals

A new survey from Ping Identity reveals that 87% of consumers are worried about identity fraud, and 89% have concerns about AI’s impact on identity security ​(News Release).

As AI plays a larger role in digital identity management, these concerns directly affect data professionals and those working in AI.

Consumers Are Losing Trust

According to Ping Identity’s findings, most consumers (97%) are concerned about how their personal data is being handled, with only 8% fully trusting organizations to manage it securely​. Additionally, 36% of respondents reported having been victims of identity fraud, with financial theft being the most common type. This lack of trust and increased exposure to fraud is a significant challenge for data professionals.

“Digital experience is at the heart of customer trust,” said Darryl Jones, Vice President of Consumer Strategy at Ping Identity. He emphasized the need for organizations to improve security while addressing these growing concerns.

AI Can Help, But Consumers Are Wary

While AI can enhance fraud detection by analyzing behavioral data and flagging suspicious activity, many consumers are still hesitant to fully embrace it. The survey found that 50% of consumers worry about AI’s lack of transparency, and 48% are concerned about the security risks associated with AI-driven systems.

Data professionals and AI developers must focus on building systems that not only detect fraud but also gain consumer trust. This means explaining how AI systems work and ensuring they are transparent and secure.

Opportunities for AI and Data Professionals

As decentralized identity solutions gain traction, AI professionals have the opportunity to design more secure, transparent systems. These solutions, which spread data across various platforms, reduce the risk of centralized breaches. According to the survey, businesses that adopt AI-driven fraud prevention while addressing consumer concerns can stand out from their competitors.

Moreover, the survey noted that despite the benefits of AI, many consumers still prefer human interaction when dealing with identity issues. About 69% of respondents said they would choose speaking with a person over using an AI system, even if it takes longer​. This indicates that AI solutions should include a balance of automation and human support.

Ping Identity’s survey highlights a growing need for secure, transparent AI systems in identity management. As AI becomes more central to fraud detection and identity security, data professionals have a key role in addressing consumer concerns and building trust. By focusing on security, transparency, and combining AI with human support, the industry can create safer digital experiences for everyone.