Fraud 'higher in countries with no chip and pin'

Overseas card fraud has increased because magnetic strips can be cloned and used in countries that have not yet implemented chip and pin technology, it has been suggested.

Thanks to recent changes in the UK that require people to use a personal identity number, crimes related to this form of payment have decreased over recent years, explained Tim Pie from HSBC.

However, consumers are still at risk – especially from criminals who are able to make counterfeit copies of a debit or credit card by reading data from the black strip, he continued.

One way to help combat fraud in foreign countries is for banks to observe accounts in real time so they can be blocked if there is any unusual or suspicious activity.

"[It] is much more effective than monitoring two days later when you have identified the fraud as it is too late to stop it," Mr Pie said.

Brits going abroad to buy expensive items might want to further protect their finances by using an international money transfer system to make the purchase.

According to the Association of Payment Clearing Services, fraud in foreign countries makes up 40 per cent of card losses.