London is the UK's hotspot for credit and debit card fraud with nearly a third of people in the capital falling victim to the crime, figures show.

Around 28 per cent of people living in London have suffered from credit or debit card fraud, according to life assistance firm The CPP Group.

Four out of 10 people affected said the fraud had occurred over the internet, while one in five people thought their card had been cloned at an ATM or in a chip and pin machine.

The group, which questioned 2,257 people, said 38 per cent of consumers spotted the problem while going through their bank statements, but 36 per cent did not realise their card was being misused until they were contacted by their bank or credit card company.

Zoe Manton, head of card protection at CPP, said: "Card fraud is a serious concern that is still common despite preventative measures put in place to combat this including chip and Pin.

"Fraud levels increased by 26 per cent in the first six months of 2007 compared to the same period in 2006, to reach £264million, a figure that confirms fraud is still a problem."