Credit card fraud has fallen for the first time since 2006 as criminals turn to the internet.

Criminals are turning to the internet to defraud consumers and using increasingly sophisticated methods to do so according to the UK Cards Association, as it reveals a 14% rise in online banking fraud.

The latest figures from the industry body reveal a 14% rise in online banking losses to £59.7 million in 2009. Vulnerable PCs were to blame according the UK Cards Association, rather than the banks’ own systems.

There was also a 16% rise in phishing incidents – where hackers send emails purporting to be a legitimate source and request personal details – bringing the total to 51,000 for 2009, with many consumers still falling victim to the scam.

In comparison to the rise in online banking losses, for the first time since 2006 debit and credit card fraud has actually decreased. The final figure fell by 28% in 2009 to £440.3m. Still an alarming figure, the UK Cards Association says it demonstrates that the industry is succeeding in beating the criminals.

A number of initiatives have been attributed to the fall in card fraud including the success of chip and pin; the increasing use of sophisticated fraud screening detection tools by retailers and banks; and the work of the Dedicated Cheque and Plastic Crime Unit (DCPCU).

Melanie Johnson, Chair of the UK Cards Association, said: “The cards industry sees fighting fraud as a key part of keeping its customers’ interests centre-stage.

“A fall in card fraud is good news for everyone – UK consumers, retailers and the industry. We recognise that cards will always be targeted by criminals, so we are determined not only to continue to prevent, detect and deter those who are behind this type of crime, but also to make sure that innocent victims do not lose out.”

However, David Cooper, Chairman of the Fraud Control Steering Group said that despite a fall in card fraud consumers should not be complacent: “Although online banking fraud losses have shown a year-on-year increase, card fraud remains a main focus of criminal activity.

“However, the industry remains committed to containing and reducing all areas of fraud. To this end we will continue our partnership approach – working with law enforcement, retailers, consumers and the Home Office – to tackle fraud head-on.”