As anti-fraud measures seem to be closing one door on thieves, figures released today show that fraudsters are turning increasingly to the internet with scams such as "phishing", as "card not present" fraud increased by nearly one-third in the latest six-month period.

The statistics, from Apacs, the Association for Payment Clearing Services, showed that fraud on credit cards through internet, mail order and telephone sales where a card's details are provided but the card is not seen by the trader had grown by 29 per cent to £90.6 million. At £58 million, internet card fraud now accounts for more than a quarter of all losses, as fraudsters are driven increasingly online for their ill-gotten profits thanks, in part at least, to the apparent success of other security measures, such as "chip and pin".

The introduction of chip and pin cards has helped reduce credit and debit card fraud by 13 per cent.

Plastic card fraud totalled £219.4 million during the six months to the end of June, down from £252.6 million during the same period of the previous year, according to Apacs.

Chip and pin cards will become mandatory for consumers from next February.

Today's figures showed that counterfeit card fraud fell by 31 per cent, fraud on lost or stolen cards dropped by 27 per cent, losses on cards that went missing in the mail was 37 per cent lower and identity theft on payment cards was down by 16 per cent.

Apacs said the reduction in the levels of fraud was mainly due to the introduction of chip and pin cards, under which purchases are verified by people keying in a four-digit pin and card information is stored more securely in a microchip, making it harder for criminals to copy.

"It’s great that chip and pin is helping to reduce fraud but it is clear that criminals are now turning to the internet," Mark Herbet, founder of intY, a managed security service provider, told Times Online.

"Consumers really need to watch out for things like phishing scams, where people are sent e-mails that pretend to be from your bank and are tricked into parting with their secret online banking information.

"They also need to be constantly guarding their PCs from viruses or 'Trojans' that could be secretly used to obtain online banking passwords and account information. People must ensure that they are using up to date security software to protect themselves, especially in the run up to Christmas when criminals will be looking to take advantage of the increase in online transactions."

Apacs spokeswoman Jemma Smith said of the growth in fraud online: "It’s the one area where chip and pin at the moment isn’t having an impact, although in the long term we may use the technology to protect this type of transaction."

She added that the levels of fraud had risen in line with the number of transactions. Online transactions increased by 27 per cent.

Research carried out for the group found that many people are putting themselves at risk of fraud through failing to take basic precautions.

It found that one in eight people has failed to log out after shopping online, leaving their financial details available for others to see, while one in four does not check if a website is secure.

It is also urging people to sign up to security schemes such as Verified by Visa and MasterCard SecureCode, under which people have to type in a password or security code when they buy something online, making it impossible for fraudsters to use stolen card details without this information.

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