Author Bio : This is a Guest Post by Marc Brown, a Senior Financial Writer associated with Oak View Law Group. He provides extensive suggestion on various topics; such as credit card debt settlement, personal loans & insurance.

Card Not Present (CNP) fraud is steadily increasing in the UK. This kind of fraud includes internet, phone and mail order fraud.

The losses owing to online bank fraud amounted to £23.4m in the first six months of last year. Financial institutions are putting in a lot of effort to combat the fraudsters.

The UK banking industry endeavors to implement a chip authorisation technology to prevent losses. However, a survey by the UK Payments Administration reveals that a large number of people in the UK are not aware of the basic security precautions that are to be taken to prevent CNP fraud. This can lead to serious monetary losses.

So remember, the following points while using credit cards online:

1. You should be extremely cautious while using your credit card online. Disclose your credit card number only to sites which you trust completely. It might be sensible to check the trustworthiness of sites with website reputation rating tools like Mywot. Note that one major sign of a fraud website is excessive advertisements and pop ups.

2. Spyware and fraud emails are another serious threat. Spyware includes keyloggers which can record what you type, including credit card numbers and passwords. So, when you enter your credit card number to buy something, even from an authentic site, it will be captured. Next, the spyware will transfer this information to some unethical person who will get access to your credit card number. Therefore, you should always use dependable antivirus software to detect and remove spyware on a regular basis.

3. To counter credit card fraud, some credit card companies have come up with an innovative idea. They would provide you a credit card number which can be used only once for an online transaction. Even if the scammers get your credit card number by any chance, it won’t be of any use. This is because the card number would automatically expire after the transaction.

4. Check for a secure connection before the transaction starts. Look out for ‘https’ in the address bar of your browser. The https means you are entering your details via a safe connection whereas just ‘http’ would mean an ordinary connection. It is possible for a third party to get access to the data in case of a http connection. Therefore, shop from sites which offer ‘https’ connection in order to avoid hacking.

5. Keep the last three digit CVV number (printed at the back of your card) a secret. The CVV number protects you from fraud during online shopping. No one can shop with your credit card even if they have the card number provided they do not know the CVV number. While using your card in shops or restaurants, you should insist that the card should be swiped in front of you. This way, no one would be able to take down the CVV number.

6. Check your account balance regularly. Even if there is a minor discrepancy, you should immediately enquire about it and find out what happened. Any suspicious activity, however negligible it might appear to be, should be reported to the bank authorities and to the police immediately.

Credit cards are a very convenient thing and we simply cannot do away with them. All we can do is use plastic with caution. So remember the above points and be wise while enjoying the benefits of credit cards.