Police, banks and retailers have joined forces to crack down on counterfeit credit cards, which cost the credit industry a record �138m over the last year.

Counterfeit fraud increased by 50% last year, according to the Association for Payment Clearing Services (APACS).

Under a new "Skimming Crackdown", shop assistants, petrol forecourt attendants and waiters are being urged to report card counterfeiters to Crimestoppers for a minimum �500 reward.

A new fraud squad to fight credit card and cheque fraud, as revealed by BBC News Online in July, has been announced and is expected to start work in early 2002.

Skimming

Skimming is the most common method of counterfeit fraud.

The magnetic strip on a credit or debit card is copied by swiping it through handheld card reader.

The data is then used to make fake cards.

Total fraud losses to UK-issued cards increased by 32% to cost �373.7m in the year to August 2001, with skimming accounting for 40% of losses.

Skimming is often linked with serious organised crimes such as drug trafficking

Crackdown

"Highly organised criminals bribe or threaten people working in petrol stations, restaurants and shops to skim customer cards for them," said Melanie Hubbard of Card Watch, APACS' fraud prevention programme.

"Staff in restaurants, petrol stations and shops are urged to call Crimestoppers anonymously if they know anybody involved.

"Skimming may sound like easy money a first, but getting involved with these criminals and indirectly with the other crimes they fund is a serious mistake."

Under the new initiative, funded by credit-card providers, people who report skimming will be offered a minimum reward of �500 for information leading to a conviction.

A two-year pilot off a national cheque and plastic card fraud squad will begin in early 2002 to focus on the organised crime syndicates behind skimming.

Plans for the pilot squad, principally funded by banks and building societies, follow talks between APACS, the Association of Chief Police Officers and the Home Office.

Crimestoppers: 0800 555111