Credit card companies and retailers are constantly trying to devise new ways of making transactions more secure and putting measures in place to prevent card fraud. The disruption caused to your life if you become a victim of credit card fraud generally only lasts a few days, but it often causes deep distress. Fraudulent transactions in the UK topped over ?500 million last year ? below are measures you can take to avoid contributing to this statistic.

- If you have trouble remember your PIN and need to write it down, do not keep the paper in the same place as your credit card as this will make using your card very easy if a fraudster steals your wallet. Consider changing it to a number more memorable to you, but try to avoid obvious choices such as your date of birth, which someone known to you could easily guess.

- When shopping online, make sure you only use secure sites and try to stick to reputable retailers.

- Destroy all receipts and statements before binning them, preferably by shredding the documents. This not only will help prevent fraudsters from obtaining your details to use for online or phone transactions, it will also protect you from identity theft.

- Do not give your PIN number out to anyone. Be wary of phone calls where operators request that you confirm your PIN number, or other personal information. Your bank will never ask you for your PIN.

- If you cannot find your credit card, call your card issuer and report it as lost immediately to avoid becoming liable for any transactions that could be made if it falls into the hands of a fraudster. Follow up the conversation with a letter, so your bank has written confirmation that the card is no longer in your possession. As soon as the card has been reported lost or stolen your car issuer will put a stop on the card and issue you with a new one. Remember, it is better to be safe than sorry.

If you have taken precautions and still find an unrecognised transaction on your statement, please do not panic. Not every unfamiliar transaction is a result of fraud. A large number of the enquiries banks receive about unrecognised credit card payments turn out to be, in fact, the cardholders. Transactions can be billed under a retailer group name, for instance Burtons may also appear as ?Arcadia?, and that transaction showing under a location 50 miles away may in fact be a local transaction billed under a head office address. In the case of transactions made where a card is not present, such as internet transactions, many are down to someone with a similar card number to your own unwittingly mistyping their card number.

If you have an unrecognised transaction on your statement call your card issuer. In some instances, the operator may be able to give you further information about the transaction that could jog your memory and help you recognise it. They will also be able to tell you if the transaction was keyed or if the card was present and a PIN number used. If you still do not recognise it but the card is in your possession and you have no further reasons to suspect fraud, most banks then request written confirmation of this before they will process a credit. The retailer then has the option of sending supporting documentation through with further information about the charge. The transaction will be reapplied if the charge turns out to be genuine. In the unfortunate event that the transaction is confirmed as fraud, your Bank will issue you with a new card and pursue the fraudsters in conjunction with the police. No further action will be required on your part.

Finally, remember to always check your statements! Getting a refund for your money and the likelihood of catching fraudsters can both be compromised if you do not notice a fraudulent transaction until several months have passed by.

Leanne worked for many years in credit card operations for a large UK bank. She has had several articles published on the subject of money. http://www.savingmoney-makingmoney.co.uk/