According to new figures almost one-third of consumers have been a victim of fraud after losing or having their credit card stolen. The average amount fraudulently take is £623, according to card protection service CPP, which emphasizes the importance of credit card security.

According to the report, credit card fraud tends to peak around the Christmas holiday period, meaning consumers should specifically be on their guard during the month of December.

Card fraud expert at CPP, Sarah Blaney warned consumers to be vigilant. “If you are only going to use maybe one or two cards to buy your presents with then that’s all you need to take with you. Don’t carry your card in your pocket. Make sure it is safely tucked away in your purse or wallet.” Ms. Blaney also advised shoppers to check all of their receipts against bank statements to make sure that no money has been stolen.

The UK’s Fraud Prevention Service, CIFAS, recently reported that 68,000 people had become victims of credit card impersonation during the first ten months of 2009.

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Consumer groups are asking for banks to change the way the handle card fraud when a customer’s pin is used after their wallet or purse has been stolen.

While banks usually reimburse fraud victims unless the customer was trying to commit fraud themselves, some banks are starting to turn down claims, saying that customers must have left a copy of the Pin in their wallet with their card.

The banking industry believes that Chip and Pin is secure, so secure in fact that if anyone breaks into your account it must have been because you acted without due care.

In cases where money has been taken from an account but not proof can be reasonably found that the customer acted negligibly, the customer is still only liable for the first £50, according to the banking code.

The UK Payments Administration agrees that bank members must abide with the code:

“The bank or card company must be able to demonstrate that the customer has either been negligent with their cards details, or that they are a knowing party to the fraud, before turning down a customer’s fraud claim.”

Cathy Neal from consumer organisation Which? also agrees that the system has some serious flaws:

“There are just too many cases like this for it to be people actually being careless. If people are saying they haven’t been careless, you have to call into question the kind of proof that they’re using.”

Chip and Pin security experts believe that there are a number of ways a fraudster could gain access to a customer’s PIN that don?t involve the customer simply writing it down and leaving it in their wallet. This includes lax security at banks and machines attached to ATMs.

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