A lifecycle view of payment fraud

Not all fraud signals mean the same thing. Some provide early visibility into potential compromise, while others indicate that fraud may already be underway. This report explores four key signal types—digital skimming, card testing, marketplace exposure, and reported fraud—and examines how each can help organizations assess risk, prioritize investigations, and determine the most appropriate response. 

Together, these signals provide different perspectives on payment fraud risk. Mastercard analysis shows that compromised cards rarely move through a simple sequence from compromise to testing to fraud. Instead, fraud signals appear in fragmented and overlapping ways, requiring different levels of urgency and different response strategies. 

This report introduces a lifecycle view of payment fraud and explores how organizations can better identify, prioritize, and respond to risk. 

Key Takeaways 

• 99% of compromised cards did not follow a linear fraud cycle, challenging traditional assumptions about how payment fraud progresses.  
• Different fraud signals require different response strategies. Digital skimming, card testing, marketplace exposure, and reported fraud each carry different levels of urgency, confidence, and operational value.  
• Timing matters. Some signals can provide a window for monitoring and intervention, while others may indicate that fraud is already imminent and require immediate action. 

Download the report to learn which signals matter most, when to act, and how to respond more effectively to payment fraud risk.