A UK crime survey shows credit and debit card fraud has reached a record high of £535 million.

According to the new government figures, criminals are now using new methods to target consumers following the introduction of Chip and Pin.

Skimming, where a card is cloned and then used by thieves, has seen an increase of 46 per cent.

Consumers lost £144 million during 2007 due to skimming, up from £98 million in 2006.

The survey revealed that skimmed cards are used to withdraw cash abroad where ATM machines do not check for the Chip and Pin microchip.

Another new trend was the use of bugging devices which are fitted near shop tills to record the information stored on the magnetic microchip.

Criminals are able to record pin codes by this method.