Online banking customers lost £22.5 million in online banking scams in the first half of this year, up 55 per cent from the same period of 2005.

New figures from the Association of Payment Clearing Services (Apacs) show a dramatic rise in the number of 'phishing' incidents, where scammers send out an email purporting to be from a consumers bank and asking them to type in their account details.

The number of phishing scams rose sixteen-fold, from 312 incidents in the first half of 2005 to 5,059 in the first half of this year.

But Chip and Pin has helped to reduce certain types of credit and debit card fraud as it is much harder for opportunist thieves to use stolen cards in shops. Apacs reported a 19 per cent decrease in the amount of money lost through this type of scam in the first six months of the year. Instances of cards being intercepted in the post fell by 57 per cent over the same period.

However, criminals are turning their attentions to other methods. Counterfeiting is becoming an increasing problem with Apacs reporting a 16 per cent increase in this type of fraud in the first half of the year. Victims lost a combined total of £53m. This was up from £45.6m the previous year.

People are most at risk when withdrawing money from a cash machine. Criminals attach fake frontages onto ATMs. When a person inserts their card to take some money out, the device copies the details of that card. This enables the fraudsters to make an exact copy. Often, the victim is unaware of anything untoward until weeks later when they receive their card statement.

It can be very difficult to spot when an ATM has been tampered with, but if you are at all suspicious, do not use that machine. Police warn that you should also watch out for “out of order” signs which direct you to another cashpoint nearby. This is a common tactic used by criminals - the alternative ATM will be the one they have fitted their counterfeiting device to.

Consumers suffer the greatest losses through online, phone and mail order fraud, however. This cost £95.3m over the first six months of the year – 5 per cent higher than over the same period in 2005.

If a fraudster can get hold of your card and address details, he or she will be able to make purchases over the internet or telephone.

Sandra Quinn at APACS said: “Everyone one of us can help defeat the fraudsters and protect our cards by keeping Pins, passwords and personal information safe and secure.”

You can reduce the risk of falling victim to this type of fraud by shredding all credit card and bank statements. You should also be careful of how you dispose of receipts as some may show your full card number. And if you have your bag or wallet stolen cancel your cards immediately. Chip and Pin may have made it harder for thieves to use your card in a shop, as they can no longer just forge your signature, but they will still be able to go on an internet or telephone spending spree.

For more on consumer affairs visit www.timesonline.co.uk/consumeraffairs

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