CREDIT and debit card fraud fell last year for the first time in a decade - thanks to the roll out of chip and pin, figures showed today.

The amount of money lost through card fraud fell 13% from £504.8m in 2004 to £439.4m last year, according to UK payments association APACS.

APACS today said the fall - the first since 1995 - came after chip and pin made it more difficult for fraudsters to use stolen cards.

Sandra Quinn, director of corporate communications at APACS, said: "This is cast-iron proof that chip and pin is doing its job.

"Back in 2002 we forecast that fraud would have risen to £800m in 2005 if we didn't make the move to chip and pin, so it is heartening to see total losses well beneath this figure."

But while total fraud was down, online banking, phone and mail order fraud has increased greatly - in the case of banking fraud, by almost double.