Why consumer trust in digital services is plummeting—Thales report exposes widespread skepticism

A growing number of consumers are losing confidence in digital services, with privacy concerns and cybersecurity threats driving widespread skepticism. The 2025 Digital Trust Index – Consumer Edition, published by Thales, reveals that consumer trust has fallen across multiple industries, with banking, insurance, and government services being the only sectors to maintain or slightly improve their standing. The study, based on responses from over 14,000 consumers across 14 countries, indicates that no industry has managed to secure the trust of more than half of its customers when it comes to handling personal data.

The findings underscore a global trend in which privacy fears are leading consumers to sever ties with brands. Over the past year, 82% of consumers abandoned a brand due to concerns about data security. This decline in confidence is further compounded by the rising frequency of data breaches, with one in five respondents (19%) reporting that their personal data had been compromised within the last 12 months.

Which Industries Are Facing the Sharpest Declines in Trust?

While banking remains the most trusted sector, the survey highlights a stark demographic shift in perceptions. 51% of consumers over the age of 55 expressed trust in banks, whereas among Generation Z (aged 16-24), this figure dropped to just 32%. This generational divide reflects broader concerns about data privacy and corporate transparency, particularly among younger consumers who are more digitally savvy and aware of cybersecurity risks.

Government services were one of the few areas to see a positive trend, with 42% of global respondents ranking them among the most trusted sectors, up from 37% in the previous year. By contrast, industries such as social media, logistics, and automotive services ranked among the least trusted, with each sector receiving only 4% approval from consumers. The news media sector fared the worst, with just 3% of consumers expressing trust in the industry.

Why Are Consumers Frustrated with E-Commerce and Digital Transactions?

Beyond privacy concerns, e-commerce platforms are increasingly losing consumer confidence due to fraudulent online activities, price manipulations, and bot-driven disruptions. Thales’ study found that 33% of consumers expressed frustration with e-commerce services, specifically because of bad bots interfering with the purchasing process. These automated programs can artificially inflate demand, manipulate pricing, and disrupt checkout experiences, making it harder for legitimate customers to complete transactions.

Online shopping platforms have long relied on algorithms to personalize user experiences, but the growing presence of automated bots is eroding trust. Consumers frequently encounter price surges, website downtime, and abandoned shopping carts due to manipulated demand, leading to increased frustration and skepticism toward digital retail.

Do Consumers Believe Companies Are Doing Enough to Protect Their Data?

Thales’ research indicates that a majority of consumers feel burdened with protecting their own data. 63% of respondents believe that too much responsibility is placed on them rather than the companies that collect and store their information. Meanwhile, 37% admitted that they only shared personal data with brands because it was necessary to access certain products or services—not because they trusted those organizations.

Despite their skepticism, many consumers still believe that companies can take steps to restore trust. The report found that 64% of respondents would feel more confident in digital services if brands implemented stronger security measures such as passwordless authentication, biometrics, multifactor authentication, and ethical AI usage.

What Steps Can Businesses Take to Rebuild Digital Trust?

Commenting on the findings, Sebastien Cano, Senior Vice President of Cybersecurity Products at Thales, emphasized that consumer trust in digital services is stagnating or declining, even in regulated industries. He noted that while cyber threats are becoming more sophisticated, businesses must proactively enhance security frameworks to address growing skepticism and restore consumer confidence.

Cybersecurity experts argue that deploying advanced identity management solutions can significantly improve trust. According to John Tolbert, Director of Cybersecurity Research at KuppingerCole Analysts, the decline in digital trust is preventable if businesses adopt cutting-edge security technologies. He highlighted that Customer Identity and Access Management (CIAM) solutions, Fraud Reduction Intelligence Platforms (FRIP), and AI-driven data protection measures can bolster security while improving user experience.

The push for stricter data regulations is also gaining momentum globally. Many governments are strengthening privacy laws to ensure that companies prioritize consumer data protection. However, industry leaders warn that regulatory compliance alone is not enough to rebuild trust—businesses must demonstrate transparency, improve data-handling practices, and communicate security efforts clearly to consumers.

What Do These Findings Mean for the Future of Digital Services?

The 2025 Digital Trust Index serves as a critical wake-up call for companies operating in the digital space. With consumers abandoning brands over privacy concerns at an unprecedented rate, businesses must take proactive steps to enhance cybersecurity, combat digital fraud, and adopt ethical AI-driven solutions.

As companies continue to invest in digital transformation, they must recognize that consumer trust is a fragile but essential asset. Organizations that fail to address cybersecurity concerns and improve transparency will struggle to retain customers in an increasingly skeptical market. The data is clear: businesses that prioritize security and build trust-driven relationships with consumers will have a competitive advantage in the evolving digital economy.