In traditional economies, value is rooted in physical and tangible assets — money, machinery and infrastructure. In contrast, the digital economy thrives on intangible drivers, such as data, identity, trust and user interactions. Of these, digital trust stands out as the most valuable and critical currency, enabling seamless transactions, fueling innovation, and forming the invisible foundation of every interaction in the online ecosystem.
why is the digital economy reliant on trust?
The digital economy is experiencing explosive, accelerated growth. With over 15% of the global GDP now being driven by the digital economy, the World Bank notes that its growth has outpaced the traditional, physical economy by a factor of 2.5 over the past decade. Artificial intelligence, big data, blockchain, and cryptocurrency are all technologies that are bringing with them a wealth of opportunities to the digital world. It must be noted however that to reap the rewards of any of these cutting-edge technologies, there is one non-negotiable — digital trust.
Digital trust is the belief that users have when they interact with the digital world assuming that it is safe, secure, reliable and ethical. Every time we engage with a digital product or service, we are placing our trust in both the offering and the wider digital ecosystem behind it. Without trust being built, users hesitate to share data, conduct transactions, or adopt new technologies, and the absence of these factors stalls economic growth and innovation. However, the very nature of digital interactions—often anonymous and remote—creates a fundamental challenge: how do we know who we are dealing with, and can we trust the systems involved?
Apple is a case in point of a brand that has built digital trust over the years. Millions worldwide remain loyal to its devices and services largely because of the trust the brand has built around privacy, reliability, and user experience.
challenges to digital trust
Though, there is no taking away from the fact that digital trust is important, it faces significant obstacles. Let us examine a few of those threats:
- Technological complexity: Rapid innovation introduces new security and ethical challenges, such as deepfake identity fraud and AI bias. Deepfake technology uses AI to create hyper-realistic but fake images, videos, or audio of individuals. This loophole is often used by criminals to fake identities and evade verification processes. Further, AI systems often inherit biases from their training data, leading to unfair or discriminatory outcomes in critical areas like hiring, lending, and law enforcement.
- Cybersecurity threats: Sophisticated attacks like ransomware and identity theft undermine confidence in digital systems. In the Asia Pacific region, ransomware attacks have more than doubled recently, highlighting the growing threat landscape. Cybercriminals use stolen credentials, phishing, and AI-enhanced social engineering to gain unauthorized access to sensitive accounts.
- Data privacy concerns: High-profile breaches and misuse scandals have made users wary of sharing personal information. A case in point is the MOVEit Transfer software, a file transfer tool that transfers large amounts of data over the internet. In May 2023, Clop, a ransomware and extortion group, carried out a data breach on MOVEit that affected approximately 1,000 organizations and exposed sensitive information of over 60 million individuals. Companies that fail to communicate transparently, misuse data, or cannot adequately protect the information entrusted to them, risk eroding customer trust.
- Regulatory compliance: The digital economy operates across borders. This makes regulatory compliance a significant challenge. Regulations such as the European Union’s General Data Protection Regulation (GDPR), California’s Central Consumer Protection Authority (CCPA), and emerging frameworks worldwide impose strict requirements on data handling, breach notifications, and user rights. Navigating and keeping up with global data protection laws requires ongoing vigilance and adaptation.
The challenges to digital trust are deeply intertwined and continuously evolving. Addressing them requires a holistic approach combining advanced technology, rigorous security practices, ethical frameworks, transparent communication, and proactive compliance. Understanding these challenges is crucial to designing and operating digital systems that users can trust. Only by overcoming these hurdles and challenges can the digital economy realize its full potential as a secure, inclusive, and thriving ecosystem.
how can IBPM help?
Organizations are moving beyond reactive threat management and adopting proactive strategies that embed safety through a blend of human expertise, AI moderation, and robust frameworks. Infosys BPM delivers strong Trust & Safety (T&S) capabilities across industries such as eCommerce, gaming, media, travel, BFSI, and healthcare. With deep Gen AI and digital transformation know-how, our practice safeguards users and platforms, ensures regulatory compliance, and enables secure, reliable digital experiences that drive growth and resilience.
