Card fraud now worth £500m as criminals go online

Credit and debit card fraud rose 25 per cent last year costing £535.2 million.

Figures from the payments association Apacs reveal the first rise in fraud in three years as criminals thwarted by Chip and Pin technology head overseas and online to operate.

Card fraud overseas now accounts for 39 per cent of all losses – rising 77 per cent last year to £207.6 million, as the lack of Chip technology means cloned cards can be used.

UK losses rose six per cent as fraudsters used stolen credit card details to buy goods online and over the phone – in so-called 'card-not-present' fraud.

Fraud on the high street has fallen from £218.8 million in 2004 to £73 million in 2007.

Victims of card fraud are usually refunded losses by banks where they have not been at fault or reckless – such as handing out details to strangers or keeping a Pin with a card.

The advice to cardholders is to make sure their card is in view whenever they hand it over in a shop or restaurant – as one scam is to copy cards behind bars and counters.

When shopping online, making sure the site is secure – with an https address and a padlock symbol showing – should normally protect your details, although up-to-date anti-virus software and firewalls are advised.

Cardholders should also never respond to unsolicited emails asking for card details – known as phishing emails.

Apacs maintains cards remain the safest form of payment – with only 0.141 per cent of all transactions being fraudulent.