Every year in the UK millions of pounds are lost as a result of credit card fraud. Criminals use various means to obtain your details, but there are steps you can take to help fight the problem.

Card Skimming and Cloning
In this type of fraud a device, created to look like the card entry point on the cash machine, is fitted over the genuine slot to passively skim the information encoded on the magnetic strip of the card. These details are stored and subsequently used fraudulently.

Once they have successfully obtained the cardholder's details, fraudsters will focus their attention on finding out the corresponding Personal Identification Number. PINs can be compromised in two ways. Firstly, by shoulder surfing, whereby the fraudster will tailgate behind the cardholder and look over their shoulder as they enter their number.

Secondly, there is increasing evidence of micro cameras being concealed within the lighting or false trunking around the ATM machine to focus on PIN entry. Real-time images are often transmitted to a receiver attached to a hand held camera, typically within 100 metres of the cash machine. The details will then be matched with the corresponding card data.

Once the threshold of compromised details has been reached the device will be removed and the information downloaded and used to create duplicate “cloned” cards.

Stolen Card Fraud
When a card is lost or stolen, it can be used until it is cancelled. Thieves can potentially buy goods worth thousands of pounds, before the owners become aware that they have been robbed. The problem has been exacerbated by the number of businesses now offering transactions over the phone, by fax or online. Since 1999, online credit card payments have increased five-fold, with around ten percent of all credit card spending now happening via the internet.

What you can do
A high-tech chip and PIN card system was introduced in a bid to tackle the issue, but credit card crime continues to rise.