Internet fraud costs shoppers £500 million

Online shoppers were cheated out of £500 million last year as online card fraud increased three-fold, a new study reveals.

Card-not-present crime became the fastest growing type of fraud as retailers switch to chip and pin and consequently force criminals out of the shops and onto the net, according to technology website TMCnet.

Fraudsters often hack their way into shop websites to access card details or set up bogus websites in order to trick people into giving away financial information.

Detective Chief Inspector Roger Cook, head of the cheque and plastic crime unit, said foreign websites are the main culprits.

"There is a lot of east European involvement in this and we have seen an increase in the technological skills and level of organisation," he added.

"Many of the security walls put in place to protect card holders are being easily breached."

Online shoppers should therefore ensure they are check the legitimacy of the company before parting with any of their financial details and only make purchases from secure sites.