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Retail · 2026.05

State of Identity in Retail 2026

Retail-specific identity benchmarks. Guest-checkout vs account conversion, account takeover economics, loyalty-program identity, returns fraud via stolen identity, PCI DSS overlap with IAM controls.

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Reviewed

2026-05-22

5 benchmarks · CC BY 4.0

Regulators

PCI Security Standards Council (PCI DSS 4.0) · state AGs · FTC · EU GDPR

  • $15B+

    ATO-driven retail fraud annual loss

    Account takeover is now one of the largest fraud categories in retail. Stolen credentials → loyalty-point theft + return-fraud + saved-card abuse. Mid-large retailers absorb 7-figure ATO losses annually.

    Source: Javelin Strategy + Sift research · 2025

  • ~55%

    Share of e-commerce transactions via guest checkout

    A majority of e-commerce transactions still go through guest checkout rather than account creation. This is the conversion-vs-CRM tension at the heart of retail CIAM design.

    Source: Baymard Institute conversion research · 2025

  • Growing

    Major retailers with passkey support

    Target, Best Buy, eBay, Walmart, Home Depot, and others rolled out passkey support during 2024-2025. Driven by ATO economics + reduced password-reset support costs. Adoption rate among customers is 8-25% depending on prompting strategy.

    Source: FIDO Alliance + retailer announcements · 2025

  • ~78%

    Observation

    Retailers reporting loyalty-program fraud

    Practitioner aggregate from retail-CISO discussions. Loyalty-point theft is the fastest-growing form of retail ATO because points are liquid + redeemable + rarely have transaction-level fraud controls.

    Source: askmeidentity practice observations · 2026

  • ~24 controls

    PCI DSS 4.0 IAM control overlap

    PCI DSS 4.0 includes ~24 controls in Requirements 7 + 8 that map directly to IAM (strong authentication, access restriction, MFA on console access). PCI is the dominant compliance driver for retail IAM programs.

    Source: PCI Security Standards Council · 2024

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These benchmarks are licensed under CC BY 4.0 — free to cite, quote, and link to with attribution. Pick a format below.

APA

askmeidentity. (2026). The State of Identity, live (v2026.05). Retrieved 2026-05-22 from https://askmeidentity.com/resources/state-of-identity-retail/

MLA

"The State of Identity, live." askmeidentity, v2026.05, https://askmeidentity.com/resources/state-of-identity-retail/. Accessed 2026-05-22.

BibTeX

@misc{askmeidentity_state_of_identity_2026_05, title = {The State of Identity, live}, author = {{askmeidentity}}, year = {2026}, note = {Version 2026.05, retrieved 2026-05-22}, url = {https://askmeidentity.com/resources/state-of-identity-retail/} }

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