Fraud Risk: Protecting the Full Account Lifecycle

Fraud risk can occur at any point in the account lifecycle, from application through offboarding. New-account fraud and account takeover involve different tactics, but both can lead to financial losses, account restrictions, longer investigations, higher operational costs, and loss of customer trust. Accounts can be especially valuable targets. Access to an account may give fraudsters more than a single transaction. It can provide sensitive information, repeated opportunities to transact, the ability to change account settings, and access to linked accounts. Reviewing identity, device, account, behavioral, login, and payment information together gives organizations more context about whether an account and its activity can be trusted and when stronger controls are needed. And even after fraud is detected, organizations may still need to restore access to the legitimate customer, reverse unauthorized changes, and investigate related accounts.

FOREWORD

This report, sponsored by Mastercard, explores how identity fraud risk can emerge across the account lifecycle before a confirmed fraud loss occurs. It focuses on new-account fraud and account takeover along with the need for connected data and the use of risk-based controls throughout the customer journey. 

This report was adapted from the 2026 Identity Fraud Study: The Illusion of Progress, published by Javelin Strategy & Research in April 2026. Javelin Strategy & Research maintains complete independence in its data collection, findings, and analysis.