In the UK the total value of fraud committed on plastic is finally dropping. However, within that total, frauds committed online, by phone or by post are on the rise. Criminals are focusing on this "card-not-present" fraud because the introduction of chip and PIN technology has made theft more difficult when transactions are conducted face-to-face.

A similar trend is expected in Ireland after St Patrick's day next year, which has been designated "PIN Day" by the Irish Payment Services Organisation (Ipso), the organisation that runs the country's electronic payments system. From 17 March 2007 shoppers without a PIN when they pay with plastic will be turned away at the till.

Chip and PIN is a key weapon in the fight against fraud and, like in the UK, should lead to a reduction in card-based crime. But it is powerless to protect transactions that take place online or by phone.

"Unfortunately, we're already seeing fraud migrate to 'card-not-present' situations, " says Una Dillon of Ipso.

"Chip and PIN is only designed to counteract counterfeit cards, skimming and fraud on cards that have been lost or stolen."

That is why retailers are doing more to protect their customers when dealing with them from a distance. "An increasing number of retailers require shoppers to verify their addresses or to provide the additional security code on the back of their cards when shopping online or by phone, " says Sandra Quinn of Apacs, the UK's equivalent of Ipso.

However, individuals need to take more responsibility too, Quinn warns. "This is a very basic fraud, not a sophisticated crime, " she says. "If the criminal doesn't have your credit card number, he can't steal in this way."

Anti-fraud campaigners say consumers need to take greater care with debit and credit cards . . . by refusing to let sales staff take plastic out of sight, for example . . . and by destroying any sensitive documents before throwing them out.

Such precautions are crucial. While consumers are rarely liable for fraud losses, resolving problems can be time-consuming . . . and proving you weren't responsible for a fraudulent transaction is very stressful.

Moreover, in the worst cases, where cardholders are deemed to have been irresponsible about safeguarding details such as PINs, they could ultimately be asked to pay the bill. And in any case, banks and retailers simply pass fraud losses on to customers in the form of higher charges and prices.

Ipso is also planning a campaign to improve the takeup of the online security systems Verified by Visa and Mastercard SecureCode.

Both work in a similar fashion: cardholders sign up to join the scheme and provide a password they will use when shopping online with a participating retailer. As long as you keep the password secure, the system provides an extra level of safety that fraudsters would need to penetrate.

"It's basically chip and PIN for the internet, " says Brian Morris, head of e-business at Mastercard. Once you've signed up to the system for a particular card, your account can't be used with participating retailers without the password. So even if your card number and personal details fall into the wrong hands, it will still be difficult for fraudsters to steal from you.

AIB has already signed up to Verified by Visa and the other banks are expected to follow shortly.

However, the schemes are not failsafe. For one thing, not all retailers have signed up.

For example, Amazon, the UK's biggest online retailer, does not offer Verified by Visa or SecureCode. Also, as with chip and PIN, your account is only safe if you keep your password absolutely secure.

For now, however, the two schemes are the best hope shoppers have in the battle against card-not-present fraud. Several banks are working on an alternative . . .

hand-held card readers which customers would use at home . . . but a date for the first trials of this technology have still not been agreed.

YOUR BANK ACCOUNT ISN'T SAFE EITHER * Financial fraudsters are stepping up their efforts to con people into releasing con"dential banking information leaving them vulnerable to theft. Una Dillon of Ipso says the number of phishing incidents reported in Ireland has increased from about 10 over the last three years to "quite a lot more over the last few months".

* Phishing is where fraudsters set up a website purporting to be the of"cial site of your bank or building society, before sending out millions of emails directing account holders to the fake address. Once there, you are asked for information, including banking passwords, that are then used to steal from your real account.

* Ed Gibson, chief security adviser at Microsoft, says there are various ways to protect yourself from such threats . . . and from more sophisticated hackers. "Make sure your PC receives its automatic updates, has antivirus software and a "rewall, " he says. "I'd also encourage people to install the latest version of Microsoft's browser, Internet Explorer 7.0, which is free, more secure and has an anti-phishing "lter."

* Above all, use common sense. Banks never email customers asking for PINs or passwords. Nor will a bank send you a link to a site that asks for such information.

* To be safe, always type your bank's internet address directly into your web browser, rather than clicking on a link. If you have a secure connection to your account, the web address will change from "http" to "https" and you should see the padlock symbol displayed.