Australians fear identity theft as online fraud rises

Experian has released research showing that 90% of Australians are concerned about identity theft online, while 56% say they have experienced online fraud or identity theft.

The findings highlight broad concern about digital security as online services become more central to banking, shopping and interactions with government agencies. They also suggest fraud is affecting consumers across age groups, with millennials reporting the highest incidence.

The study found that 64% of millennials in Australia said they had been victims of online fraud, compared with 57% of Gen Z, 44% of Gen X and 42% of baby boomers. The most commonly reported forms were credit card fraud at 42%, purchase scams at 40% and social media account hacks at 39%.

Reports were highest in financial services and banking, where 70% of respondents said they had encountered fraud. E-commerce followed at 58%, telecommunications at 48%, government services at 44%, retail at 43%, utilities at 35% and healthcare at 28%.

Identity theft was the leading concern when Australians were asked which kinds of online fraud worried them most. Respondents also highlighted fake purchase scams, credit card fraud, account takeover and AI-driven fraud such as deepfakes.

AI and trust

The report also examined how consumers view the use of artificial intelligence in fraud controls. A slim majority, 53%, said they were comfortable with AI being used for behavioural analysis to identify suspicious activity.

Support dropped when the technology became more intrusive or autonomous. Only 19% said they were comfortable with facial recognition as a security method, while 9% were comfortable with AI agents making decisions such as authorising payments or applying for services on their behalf.

The findings reflect a tension for businesses trying to strengthen fraud checks without raising new concerns about privacy, decision-making and customer oversight. Banking, retail, telecommunications and public services are all under growing pressure to improve account security as scammers adopt more convincing digital tactics.

Richard Atkinson, Head of Fraud and Identity, Experian A/NZ, said, "Fraud and identity theft are becoming a mainstream concern for Australians as digital services play a larger role in everyday financial and consumer activity."

"At the same time, advances in technology are changing how fraud is carried out, enabling more convincing impersonation, making attacks easier to scale, and for organisations, harder to detect," added Atkinson.

The figures add to a broader picture of scam losses in Australia. The Australian Competition and Consumer Commission has estimated Australians lost AUD $334.9 million to scams in 2025, underlining the financial impact of fraudulent activity alongside the broader effect on trust in online services.

Consumer response

For consumers, the data suggests concern extends beyond direct financial loss. Identity theft can affect access to accounts, credit records and personal information across multiple services, making recovery harder once details have been compromised.

That may help explain why Australians remain cautious about some tools used to strengthen digital verification. While behavioural analysis drew majority support, facial recognition and automated AI decision-making were viewed far less favourably, suggesting acceptance depends on how visible and invasive the method appears.

Businesses are increasingly using AI in fraud monitoring to spot unusual patterns, flag possible impersonation and respond more quickly to suspicious transactions. The report suggests public support for those measures may depend on firms clearly explaining how the systems work and where human oversight remains in place.

Atkinson said, "As technology becomes more embedded in transactions, it is getting increasingly difficult for companies to differentiate between legitimate activity and fraud, making it critical to strengthen detection capabilities."

"However, businesses still need to maintain simple, transparent customer experiences whilst comfort levels toward certain technologies remain cautious," added Atkinson.