CARD fraud has soared this year despite the introduction of chip and pin.

There was a 26% increase in credit-card fraud in the first half of the year, according to Apacs, the clearing service. Domestic card crime fell 4% but there was a 126% rise in overseas fraud.

Sandra Quinn at Apacs said: “Fraudsters have changed tack. A couple of years ago they were mainly stealing cards and card details for use in UK shops and cash machines.

“But because of chip and pin they have been driven overseas.”

Chip and pin is not accepted universally, so data is still stored on the magnetic strip of a credit or debit card, as well as on the chip. Criminals are copying the data held on the strip to create a fake card that is then used in a country that has yet to upgrade to chip and pin technology.

Overseas fraud is most common in America – £16.7m was spent there by criminals last year, and it is expected to remain high because the US has no plans to introduce chip and pin.

Foreign card fraud is also common in continental Europe because crime gangs can get there easily and cheaply, but this is likely to become less of a problem as by 2010 all EU members plan to have chip and pin.

Also on the increase is online and telephone fraud, which surged 44% in the first six months and totalled £137m, against £95m in the same period in 2006.

In order to reduce the risks, Apacs recommends that whenever you use a credit or debit card, whether here or abroad, try and keep it within sight. This limits the opportunities fraudsters have to swipe your details.

It is also advisable to cover the keypad when inputting your pin to prevent anyone else from seeing what it is. And keep a close eye on your card and bank statements. Banks are getting better at spotting irregular spending on customers’ accounts but if you notice anything untoward, contact them immediately.

Once you have checked your statements, shred the paperwork because it will include account details that criminals can use.

Quinn also recommends you register all your cards with Mas-tercard Securecode or Verified by Visa. These give protection against online fraud because you set up a personal password and code so that every time you make a purchase over the internet, you have to provide your code. If you are not registered with one of these services, anyone who gets hold of your card can use it to make an online purchase.