Experian Report Highlights AI Trust Gap as Fraud Losses Surge to $15.9 Billion

Experian has released its 11th annual Identity and Fraud Report, revealing a critical shift toward a "human-not-present" economy. For fintech professionals, the data signals a dual-edged sword: while 31% of consumers use AI for transactions, fraud losses have surged to $15.9 billion, forcing a massive industry-wide pivot toward AI-driven verification and agent-based trust models.

What was announced

The report highlights the rapid integration of artificial intelligence into the digital economy and the corresponding rise in sophisticated fraud. According to FTC data cited in the report, consumer fraud losses reached $15.9 billion in 2025, a 27% increase over the previous year. Experian’s own research indicates that nearly one in five individuals suffered personal financial losses from online fraud within the last year, with phishing scams (26%) and fake advertising (19%) remaining the primary vectors of attack.

The findings detail a significant gap in consumer confidence regarding AI. While 31% of consumers have used AI tools for general shopping, only 17% feel comfortable relying on AI for financial services decisions. This hesitation is mirrored by businesses, 60% of which report higher fraud losses than in previous years. The leading corporate concerns regarding AI include phishing attacks (53%), first-party fraud (51%), and document forgery (45%).

To address the emergence of AI agents acting on behalf of humans, Experian has launched Experian Agent Trust™. This product is designed to verify the identity of both the consumer and the digital agent facilitating the transaction. Currently, 80% of organizations are already utilizing machine learning or generative AI within their fraud management systems to counter these evolving threats. The report notes that Experian’s existing fraud prevention solutions helped clients avoid approximately $19 billion in global fraud losses in 2025.

"AI is transforming digital interactions in ways that are creating both exciting opportunities and new risks. As we move toward a human-not-present era where consumers increasingly rely on AI to help make decisions on their behalf, the organizations that will succeed will be the ones that make trust visible. Establishing identity and trust, whether for a person or an AI agent, is essential to every digital interaction."

Kathleen Peters, Chief Innovation Officer at Experian.

The companies involved

Experian is a global data and technology company headquartered in Costa Mesa, California. It operates as a major player in the global information services market, providing data analytics and consumer credit reporting services. The company has a significant international footprint, particularly in the UK and Ireland, where it has recently focused on expanding its digital verification and software innovation capabilities through both internal development and strategic acquisitions.

The Federal Trade Commission (FTC) is the independent agency of the United States government mentioned in the report regarding fraud loss statistics. The FTC’s primary mission is the enforcement of civil antitrust law and the promotion of consumer protection. In the context of this report, the FTC serves as the primary source for quantifying the economic impact of fraud on the American public, tracking the sharp rise in reported losses as digital transactions become more complex.

What FF News has reported before

FF News has closely followed Experian’s aggressive expansion into digital identity and verification. Recently, we covered how Experian Launches Identity Connect to Streamline UK Digital Verification and Fraud Prevention, a move aimed at reducing friction in the onboarding process. The company’s acquisition strategy was also highlighted when Experian UK&I Strengthens Its Leading Digital Verification Capabilities With the Addition of Konfir. Furthermore, the broader industry trends identified in this report align with our previous analysis that AI Takes Center Stage as the Major Threat to Cybersecurity in 2026, which anticipated the rise of deepfakes and automated bot attacks.

What this means

This report confirms that the "arms race" between fraudsters and financial institutions has entered a new, autonomous phase. The launch of Experian Agent Trust™ suggests that the industry is moving beyond simple multi-factor authentication toward a model where the "agent" is the primary entity being vetted. Financial institutions that fail to adopt AI-driven defenses are under immediate pressure, as 77% of businesses are already increasing their fraud budgets to keep pace. The most critical takeaway is the "trust gap": consumers are willing to use AI for convenience but remain deeply skeptical of its role in finance. Banks that can prove their AI agents are secure will likely capture the 84% of consumers willing to take extra security steps for peace of mind.