Question: What is "card not present fraud"?

Sandra Quinn: Card not present covers all those payments where we buy something when we're not actually face-to-face with a retailer.

Card not present fraud happens on the so-called "new high street" when somebody uses our credit or debit card details to make an internet, phone or mail order transaction.

Question: How big a problem is it?

Sandra Quinn: This is now the second biggest area of card fraud in the UK.

It has risen by a third in two years. But then again its important to remember that the amount of purchases we have made has also grown by a staggering amount in the last couple of years as well.

There were something like 340 million card not present transactions last year, including phone, fax and mail order, as well as internet.

Question: What is APACS doing to combat the spread of card not present fraud?

Sandra Quinn: Increasingly people are using their cards to buy things over the phone but they're not actually as vigilant as they should be about basic security measures.

During the week we will be targeting retailers in particular and giving them some quick and easy hints that they could follow.

We're also encouraging them to take up all the different tools that are available to them which can help minimise their own risk.

We have a number of schemes available. For example we have an address verification service and a card security code.

This means consumers will be asked for their three digit security code - found on the back of your card - when paying over the phone as it proves they have their card in their possession.

Most of the time this fraud stems from fraudsters rooting around in bins looking for old receipts and all they take is the card number and the expiry date. So asking for a security code as well helps combat this type of fraud.

Question: Should the government be taking a greater lead on this issue?

Sandra Quinn: We've been working very closely with government on a number of card fraud initiatives.

We've had a lot of Home Office support for the work we're doing and the Minister for Crime reduction, Hazel Blears has endorsed the reports we've issued from the Northampton trials.

I think at the moment they are very pleased that the industry is taking forward these initiatives on their own.

The DTI has also published a list of tips for internet shoppers on just how to be secure and how not to come a cropper when shopping online.

Question: What proportion of customers are expected to use the internet to buy presents this Christmas?

Sandra Quinn: Something like 82 per cent of card users have, on occasion, made remote purchases.

With Christmas coming up, 87 per cent of those with internet access are planning to use the internet to buy gifts.

This is quite a high percentage and some of the figures we are releasing during Card Security Week actually show that over half the people out there expect to spend at least the same or more than they spent last year on card-not-present Christmas shopping.

Question: What should retailers be doing to stamp out credit card fraud?

Sandra Quinn: The most obvious tip is to be aware of the risks and train your staff as well.

If a retailer is doing an internet sale or an over the phone sale, if there is anything suspicious about it, if it's too easy, if the customer claims to be using someone else's card on their behalf, if someone gives their mobile phone as a contact - that sort of thing.

Or if someone says they have two cards and want to split the purchase - these are all signs that there could be some trouble.

Quite a lot of retailers fall into the trap of thinking that because the card payment is authorised, they've got nothing to worry about - they think its guaranteed. But all this does is confirm the card has not been lost or stolen and there are funds in the account.

Through the address verification scheme, they will have access to the address of the cardholder and be able to match this with the delivery address they've been given for the goods ordered.

One company, O2, has been using the security code system over the past year or so and they've managed to reduce their fraud by 80 per cent.

Retailers can also arrange for delivery through a courier company and ensure that goods are not being delivered to hotels or other similar venues.

We're not saying its inherently unsafe - clearly it isn't otherwise there wouldn't be this much purchasing going on. But its just that the high level of purchases means there is an additional risk.

Question: How can customers protect themselves?

Sandra Quinn: There are pieces of general advice we give people about credit card fraud. Always check your bank statements and if there are any transactions you don't recognise contact the card issuer immediately.

Something a lot of people are bad at doing is shredding or burning their statements once they are finished with them.

One of the ways fraud happens is by people raiding bins and getting receipts from them.

Plus you shouldn't leave your cards or financial correspondence lying around where anyone can see them - it's just basic common sense stuff really.

The survey we've undertaken shows that one in five people have let others use their card over the phone or mail order - which is very worrying.

Question: Will chip and PIN help combat card not present fraud?

Sandra Quinn: Introducing chip and PIN will essentially impact the two other large areas of card fraud - counterfeit and lost and stolen cards - but we want to keep initiatives going on other fronts as well. We don't want the fraud migrating from one area to another.

Longer term, chip and PIN itself will be able to be used in a remote environment such as your personal computer and this will provide a further platform for cracking down on credit card fraud.