A new consumer study released by iProov warns that deepfakes have triggered The Great Trust Recession, where digital authenticity has been undermined, and skepticism has reached unprecedented levels.
The research, which surveyed 2,000 individuals across the UK and the US in Q1 2026, shows that AI-generated impersonation is increasingly seen as a real-world threat undermining confidence in what people see online. Nearly half of respondents (48%) say they now question the authenticity of “almost everything” they encounter online, signaling a profound shift in consumer confidence. Consequently, establishing genuine human presence in digital ecosystems is now essential to thwart fraud, misinformation, reputational harm, and institutional distrust, and to regain certainty about what — or who — can be believed.
The breakdown in confidence is already evolving into commercial pressure: three-quarters (74%) of consumers say they would switch banks if a competitor offered guaranteed protection against deepfake-enabled fraud. This highlights how consumer allegiance is being impacted, with many willing to endure the inconvenience of switching banks to gain stronger safeguards against AI-driven impersonation. Younger adults are leading this shift: 41% of those aged 25 to 34 say they would switch immediately, compared with just 14% of those aged 65 and older, showing that even the most digital native generations are raising expectations for stronger safeguards.
At the same time, expectations of accountability are rising sharply. More than half of respondents (52%) believe banks should be legally liable for losses caused by deepfake-enabled fraud, reflecting growing demand for institutional responsibility in the AI era.
A Government Trust Gap Is Emerging
The study also highlights evolving expectations around digital public services. While the availability of online government platforms has grown, many consumers say stronger identity protections would increase their confidence. More than half (55%) report they would be more likely to use government services online if a secure biometric login were available. When given a choice, respondents also show openness to digital-first options: 43% say they would prefer a secure face scan via a mobile app, compared with 30% who would choose an in-person appointment.
“AI has blurred the line between real and fake in digital ecosystems, and too many organizations are caught off guard. This study highlights a major shift in consumer sentiment, showing that generative AI is actively undermining the credibility of the institutions people have traditionally relied upon,” said Andrew Bud, founder and CEO of iProov. “Deepfakes are quickly undermining the trust at the heart of the digital economy, ultimately compelling consumers to change their behaviors and, importantly, who they are willing to do business with.”
Find the Fake Game
The stakes behind this research are easier to understand when experienced firsthand. iProov’s new interactive game, “Find the Fake,” challenges participants to identify a single AI-generated deepfake hidden among a grid of six seemingly real social media profiles. It’s a deceptively simple exercise and a revealing one. Try it for yourself at https://quiz.iproov.com/quiz2/en.
