Chip and Pin credit and debit cards helped to cut fraud by 13% in 2005, according to the Association of Payment Clearing Services (APACS).

Losses dues to fraudulent use of cards fell last year by £65m to £439m, with every category of fraud dropping except for transactions by phone, Internet and the mail service. Fraud levels are now where they were in 2003.

Sandra Quinn of APACS said: “Seeing card fraud losses come down is cast-iron proof that chip and PIN is doing its job. It’s heartening to see total losses well below the projected levels.”