Consumers left “vulnerable to fraud” by lack of digital ID education, warns Credas

Millions of UK consumers are putting themselves at fraud risk because they do not understand digital identity processes, according to new research from identity verification firm Credas.

The company is calling for a national push on digital ID education after findings showed widespread use of insecure methods to share sensitive documents – even among homebuyers, one of the most heavily verified consumer groups.

Sixty-two percent of the UK homebuyers surveyed said they send copies of identity documents via email, while one in ten admit to sharing them over WhatsApp, despite both channels lacking proper encryption, audit trails or security safeguards.

The warning comes at a time when digital identity is becoming more central to banking, healthcare, employment and property transactions.

Education gap holding back safer verification

Credas says the issue is not public resistance to digital identity, but a lack of basic understanding about how it works and why it is safer than traditional checks.

The company’s CTO, Neil Williams, said that the technology and standards to deliver secure, user-controlled digital identity already exist within the UK ecosystem. The UK Government’s Digital Identity and Attributes Trust Framework (DIATF), for example, sets out clear rules for privacy, security and transparency designed to give individuals greater control over how their data is shared.

However, he warned that standards alone are not enough if the public does not understand them. “The problem isn’t that the public doesn’t trust digital identity – it’s that very few have explained what it actually is or how it protects them better than ‘traditional’ methods,” he said.

Demand for control and transparency is clear

The research suggests consumers want more control over their data, but do not feel informed enough to make secure choices.

Eighty-six percent of respondents said having control over when and how their data is shared is important or very important, while nearly a third (32 percent) cited lack of transparency as a major concern during identity verification processes.

The findings land against a backdrop of ongoing backlash and public concern around the UK government’s digital identity plans.

That debate, Credas suggests, underlines the wider education challenge: digital identity is expanding rapidly across public and private services, but public understanding has not kept pace.

“Education isn’t marketing, it’s a duty of care,” said Williams. “Businesses rolling out digital verification have an obligation to explain what they’re asking people to do and why it’s safer.”

Without that clarity, he warned, adoption of more secure systems will stall and fraud risks will persist. “Without that, we’re leaving consumers vulnerable to fraud and holding back the solutions designed to protect them.”