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AI-Powered Fraud: Travel Industry Faces Growing Consumer Distrust – Image Credit Unsplash+
Recent research conducted by Jumio, a leader in AI-powered identity intelligence, has unveiled a significant lack of confidence among global consumers regarding the travel industry’s ability to safeguard against identity fraud. As the world becomes increasingly digital, consumers are growing wary of AI-powered fraud, including identity theft and account takeover fraud, particularly within the travel sector.
Consumer Confidence in Travel Industry
Jumio’s study reveals that 44% of global consumers do not trust the travel industry to protect them from AI-powered identity fraud. This figure rises to 55% among American consumers. The travel industry’s reliance on digital platforms for booking flights, accommodations, and rental services necessitates the sharing of sensitive personal data, such as government-issued IDs. This data exchange makes consumers vulnerable to identity fraud, especially during peak travel seasons like summer.
In the context of the sharing economy, which includes vacation rentals and other travel-focused services, consumer confidence is even lower. In the U.S., 60% of consumers express distrust in the industry’s protective measures, with 50% of global consumers sharing this sentiment. These findings underscore a broader global distrust in digital security, with 69% of respondents indicating that AI-powered fraud poses a greater threat to personal security than traditional identity theft methods.
Consumer Willingness to Invest in Security
Despite the lack of confidence, consumers are showing a willingness to invest more time in identity verification processes if it enhances their security. In 2025, 74% of global consumers reported a willingness to spend additional time on identity verification when accessing travel and hospitality platforms, an increase from 71% in 2024. This trend is mirrored in the sharing economy, where 70% of consumers are willing to spend more time verifying their identity, albeit with a preference for low-friction, visible safeguards.
This growing willingness to prioritize security is not limited to the travel industry. In traditionally higher-risk sectors like banking and financial services, 80% of consumers globally are prepared to spend more time on security measures for digital platforms.
Industry Response and Future Directions
Bala Kumar, Chief Product and Technology Officer at Jumio, emphasizes the need for the travel and hospitality industry to adopt new solutions and technologies that balance convenience with protection. As AI-powered scams continue to evolve, traditional protective measures may no longer suffice. Kumar highlights the importance of developing structures and processes that ensure customer safety and data protection, akin to physical safety measures like evacuation plans and hotel room safes.
Find additional data and insights here.