"Euro13m was lost in Ireland through credit card fraud in 2005, but in 2006 this dropped to Euro12.5m reversing the trend of mounting losses year on year, " said Una Dillon of the Irish Payment Services Organisation (IPSO).

But while credit card fraud is down, "there has been an increase in the number of 'phishing' attacks last year, " Dillon said. 'Phishing' is where internet shoppers are asked for their credit card details by a person posing as the shopper's bank. Once the details are sent, criminal gangs can use them to buy any number of items on the internet.

Per capita, the Irish are among the busiest of internet shoppers. Over 90% of Irish people buy airline tickets electronically - the highest per capita in the world, according to a survey by Amarach consulting. But the increasing number of businesses which sell over the internet are concerned that the upsurge in phishing attacks will undermine e-shoppers' confidence.

Dillon said that later in the year, IPSO plans to roll out a new internet anti-fraud system called '3D Secure' or 'chip & pin' for the internet. This will involve the cardholder's bank intervening in an internet purchase to verify, by a series of coded security questions, that the cardholder is genuine.

Meanwhile, from 17 March on, shoppers will have to use their four-digit pin number with all credit card purchases.