Australian survey reveals risky passwords & distrust of AI

New research by Okta has shown that Australian consumers are increasingly exposing themselves to cyber security risks through poor password practices and a growing distrust of artificial intelligence agents in digital experiences.

The 2025 Customer Identity Trends Report surveyed more than 6,700 consumers worldwide, including 1,000 Australians, highlighting persistent gaps in cyber security hygiene and digital trust among the Australian public.

Cyber risk and password habits

The report revealed that 67% of Australians reuse the same password or a small set of passwords across multiple accounts, a practice that significantly raises their risk of cyber attack. While 76% of Australians use passwords to access personal accounts, only 55% believe that passwords are a secure form of protection. Difficulties in remembering multiple unique logins (47%) and time constraints (33%) were cited as the main reasons for password reuse.

The findings suggest a notable disconnect between awareness of cyber risks and effective action. Despite increasing knowledge about digital threats, a majority of Australians continue to use unsafe password habits, leaving themselves more vulnerable to attacks such as phishing and credential theft.

"Passwords remain the weakest link in the security chain. Until we move beyond them, with modern authentication, consumers continue to be at risk," said Mike Reddie, Vice President and Country Manager, Okta ANZ.

Digital trust and AI agents

The study found a significant trust deficit when it comes to AI-powered digital experiences. One in four Australians (25%) are averse to using AI agents. Of these, 54% say that their reluctance is due to a lack of trust in AI agents with their personal data. The research also highlighted that, globally, 60% of consumers are concerned about the impact of AI on digital identity privacy and security.

"Businesses are embracing AI to drive efficiency and innovation. However, if identity and trust aren't built into these interactions from the start, they risk creating vulnerabilities and losing the trust of the very customers they aim to serve," said Reddie.

The identity challenge is particularly significant as organisations increasingly deploy AI agents in consumer-facing roles, such as chatbots and digital onboarding assistants. The report notes that AI agents require the same levels of authentication, authorisation, and monitoring as human users, or they risk becoming targets for malicious actors.

Some respondents suggested paths toward building confidence in AI, with 38% indicating they would trust AI agents more if a human approved their actions. This signals a demand for transparency and oversight in digital interactions involving AI.

Frustrations with digital experiences

Consumer frustrations with the digital sign-up and login process were also highlighted by Okta's research. 62% of Australians find long or complex login processes frustrating, and 25% have abandoned a purchase because of problems with login or registration. Among Generation Z consumers, this abandonment rate rises to 36%.

Australians appear to prioritise trust in companies over the intrinsic value of their products, with 74% saying that a company's trustworthiness is more important than product value when deciding whether to sign up for its services.

"Australians want control, transparency, and security when it comes to AI. Trust can be earned, and identity is where it starts," Reddie added.

Security as a strategic priority

Okta's findings indicate that identity security is increasingly viewed as an essential component of business strategy rather than an afterthought. The study suggests that effective customer identity management, including the adoption of secure authentication methods, could help close the gap between Australians' security concerns and their day-to-day digital behaviour.

"Identity connects people, and increasingly AI, to the right resources with the right level of assurance. Security is no longer a back-office function, it is the foundation of digital trust, a board level topic, and the key to driving growth in the AI era," Reddie added.