Canadians lose trust after data breaches, with AI seen as risky
Okta has published its 2025 Customer Identity Trends Report, revealing significant concerns among Canadian consumers regarding digital trust and security.
The report highlights that 76% of Canadians would cease doing business with a company following a data breach, with 36% of that group stating they are very unlikely to ever return.
Trust and generational differences
Concerns about digital security and trust vary across generations. According to the report, only 8% of Baby Boomers would remain loyal to a brand after a breach, while 33% of Gen Z respondents suggested they would give a company another chance. This indicates that younger consumers may have a more empathetic perspective toward the operational complexities businesses face online.
Ryan Sydor, Canada Lead at Okta, commented on the importance of digital trust and identity:
"In a digital-first world, trust is everything, and identity is at the heart of it. Customers expect secure, seamless experiences, and businesses that fail to protect personal data risk losing them for good. Strong identity management isn't just a security tool. It's how companies earn and maintain trust."
Sector variation and business size
The report found that 79% of Canadians consider trust and reputation as their highest priorities when deciding to create an account with a company. Trust levels differ significantly based on sector. While banks and financial institutions are considered the most trusted by 66% of respondents, followed by healthcare providers at 57%, small businesses lag behind. Only 27% of consumers trust small businesses with their personal data. This trend is attributed in part to the reduced cybersecurity resources typical of smaller organisations, making them more vulnerable to cyberattacks.
Password practices and authentication methods
Despite widespread concern about identity theft—cited by two-thirds of Canadians—65% admit to reusing passwords across multiple online accounts. The report suggests this habit is driven largely by convenience: 62% stated that remembering unique passwords for every account is too difficult. Additionally, 27% rely on secondary security measures, such as two-factor authentication, rather than creating unique login credentials for each platform.
Shiv Ramji, President, Customer Identity Cloud at Okta, addressed the growing interest in more secure authentication methods:
"Strong security shouldn't come at the cost of a seamless user experience. Passwordless authentication, especially tools like biometrics, offer both. By removing the burden of remembering complex passwords, we not only improve security but also build the kind of effortless experience today's users expect."
The findings indicate a gap between cybersecurity awareness and user habits, highlighting ongoing challenges for businesses in encouraging safer digital behaviours.
AI and customer trust
The increasing presence of AI in digital customer service has yet to win full acceptance among Canadian consumers. The report found that 83% prefer dealing with humans over AI agents, and 66% believe human representatives better understand their needs. More than half (56%) do not trust AI agents with their personal data; the report notes that 77% would not share financial information with an AI-driven agent.
This hesitancy around artificial intelligence reflects a broader uncertainty about who controls digital identities in an era where both people and AI systems manage sensitive information. Okta's report notes the emergence of "non-human identities"—AI agents with increasing autonomy and access to privileged information. Addressing these control and security issues is seen as essential for protecting consumer data as AI adoption accelerates.
Okta states that its tools, such as Auth for GenAI, are intended to support secure integration of identity and access controls in AI-driven systems, aiming to help organisations manage digital identities and maintain user trust.
Survey methodology
The 2025 Customer Identity Trends Report was developed by Okta in collaboration with Statista and surveyed 6,750 consumers between the ages of 18 and 64 across nine countries. The report examines attitudes toward identity, security threats, and AI in customer interactions, with a focus on sector and generational trends within Canada.
These findings underscore the complexities companies face in balancing security, user experience, and the rapidly evolving digital landscape—a challenge made more acute by recent high-profile data leaks and increasing consumer expectations around trust.
