Credit card details are being widely copied by UK criminal gangs to commit fraud costing banks and retailers �134m a year, figures show.

Many customers paying by card in restaurants and garages are unwittingly having their card details copied, a process known as "skimming".

From these copied details organised gangs of fraudsters are producing and using replica cards abroad.

Fraud hotspots

It can take as little as one hour between a card being skimmed in the UK and a counterfeit card being produced and used overseas.

In the most extreme case fraudsters can use counterfeit cards to spend tens of thousands of pounds on electrical goods and fashion items.

The Association for Payment Clearing Services (Apacs) estimates that last year �134m, one third more than in 2000, was creamed off by fraudsters in this way.

The hotspots for fraudulent spending sprees are Spain, France, US and the Far East.

What is more, UK holidaymakers' credit cards are also being skimmed in shops abroad then used locally.

Apacs say that 20% of international credit card fraud against UK accounts occurs in this way.

Banks pay cost

Fortunately for customers, at present banks bear the brunt of the cost of card fraud.

Mr Richard Tyson-Davies, director of Apacs, said: "Consumers are protected entirely. The bank will cover the losses."

Nevertheless, Mr Tyson-Davies urged customers not to let retailers and restaurateurs take cards out of sight to swipe.

However, Mr Tyson-Davies recognised it was not always possible to be 100% vigilant.

"Many don't feel comfortable following a waiter or a cashier in order to make sure their card isn't being skimmed."

Technology to the rescue

Long term, Mr Tyson-Davies said new technology would help in the battle against the fraudsters.

"By 2004 no card transaction in the UK will be able to happen without the customer entering a pin number into a special machine at the point of sale."

However, although a similar system already operates in France, many countries show no sign of adopting pin technology.

As a result, in countries without pin technology fraudsters could still be able to use copied UK cards to buy goods even after 2004.

"We know it's not the be all and end all, but at least it should stop a lot of card fraud in the UK and Europe," Mr Tyson-Davies said.