More than eight out of ten of British shoppers will buy gifts over the internet or by phone this Christmas.

However, a new report by the Association for Payment Clearing Services (APACS), also shows that fraud on "card not present fraud" has increased by 33 per cent over the last two years.

Malcolm Bruce, trade and industry spokesman, said: "With more and more of us doing business on the Internet and over the phone, the £300,000 a day of fraud on such remote transactions is great cause for alarm.

"Consumers and retailers end up paying for this fraud in the end, as the credit companies absorb the fraud in higher charges.

"Credit companies need to bring forward measures to cut this out, from pin numbers to passwords. Retailers must be more vigilant and customers need to know all the risks involved in giving out details."

Forum Response: Association for Payment Clearing Services

Sandra Quinn, spokeswoman for the Association for Payment Clearing Services (APACS), said: "If you let anyone have sight of your card, statements or receipts, you risk becoming a fraud victim.

"Internet, mail order, phone and fax transactions can offer a tempting target for card criminals.

"But there are simple steps you can take to protect yourselves. Check your statements carefully for fraudulent transactions. Burn or shred those statements - and card receipts - when you have finished with them. Don't let your card out of your sight - and don't let anyone else use your card or have sight of your card details.

"Banks and retailers are currently rolling out chip and PIN, a new initiative in which signatures will be replaced by four digit personal identification numbers (PIN) for card transactions. The majority of card transactions will be chip and PIN by 2005.

"Chip and PIN will have a significant impact on counterfeit, lost or stolen, and mail non-receipt fraud.

"Card users can make a similar impact on 'card not present fraud' by following the simple steps we are outlining today. Retailers can significantly cut their risks by following the steps outlined in our training and educational materials."