The holders of more than 25 million credit and debit cards have signed up to the secure online payment systems ‘Verified by Visa’ and ‘MasterCard SecureCode’ - an increase of nearly 600 per cent in the past two years, according to official figures.

The voluntary systems add a further layer of protection for online shoppers by requesting a pass code from users before a transaction can proceed. Halifax has its own version, Halifax Secure.

Over 1.5m cards are now registered with one of the schemes every month according to APACS, the UK payments association.

Online card fraud continues to rise. This year's ;osses from "card-not-present" fraud, where a fraudster uses card details, rather than the card itself, to make online transactions, currently stand at £290.5m. Last year the figure was £223.8 million.

The rapid uptake of the new schemes is partially due to banks forcing customers to sign up.

Last week, a Times Online reader said his bank, Alliance & Leicester, required that he sign up before they would carry out an online transaction.

Cardholders can sign up to Verified by Visa or MasterCard SecureCode at the website of the bank or card company that issues their card, or when they are shopping at participating merchants.

Sandra Quinn of APACS, said: “The banking industry continues to urge those cardholders not yet signed up to do so, as we all need to play our part to make life harder for online shopping fraudsters."

Most banks and credit card companies monitor your banking activities and will inform you if they suspect anything unusual - if you suddenly take out large sums, for example.

Some, such as Royal Bank of Scotland, offer a free fraud alert service which sends a message straight to your mobile phone if it spots a potentially dodgy transaction.

Equifax, the credit reference agency, offers an Identity Watch scheme which sends out email alerts or mobile text messages within seven days of possible identity theft.

You can also register with Cifas, the UK's fraud prevention service, for £11.75.

If you are a victim of identity fraud, your bank will usually register you free with its own service. Once you are registered, your name and address is earmarked. When you apply for a loan, credit card or mortgage you will be asked more personal questions than usual to provide further proof of identification; and so will any fraudster applying for credit in your name. A disadvantage is that you will find it difficult to get "instant" quotes.