Security alert: the fight against internet crime is intensifying. A few simple steps could help you avoid being stung by online criminals.

How to beat the credit-card cheats and fraudsters

Organised crime syndicates, including the east European mafia and the Chinese triads, are thought to have targeted the internet. They set up bogus websites offering seemingly cheap goods and services. Online shoppers enter their credit-card details - but the goods never arrive.

The fraudsters then go on shopping sprees using your card number - or sell the details via websites.

Computer hackers have also breached security systems, raising questions about the safety of cardholders' information. Last year hackers tried to extort £10m from Visa after stealing information from the credit-card firm's central computer.

Visa says the British hackers were detected almost immediately and no cardholder information was stolen.

However, 25,000 customers of CD Universe, an online music retailer, were not so lucky. Their names, addresses and credit-card numbers were posted on a website after the retailer refused to pay a £100,000 ransom.

Credit-card firms are now stepping up the fight against online fraud. Mastercard is working on plans for a web-only credit card, with a lower credit limit. The card could be used only for shopping online.

In the meantime, there are a few simple steps you can take to avoid being stung.

Ask about your credit-card firm's online policy: Under the law, cardholders are liable for the first £50 of any fraudulent spending. However, some credit-card companies, such as RBS, Egg and Barclaycard, have pledged to waive the £50 for internet fraud. You should only shop online with a card offering this guarantee.

Shop only at secure sites: You should send your credit-card details only if the site offers secure sockets layer (SSL) or the newer secure electronic transaction (set) technology. If the security is in place, a padlock symbol will appear in the bottom right-hand corner of your screen. The website address may also start https:// - the extra s standing for secure. If in doubt, give your credit-card details over the telephone.

Shop at stores you know: Look for a trading address and telephone number and contact the retailer. Be particularly wary of dealing with private individuals. A site has recently been set up - www.itrustyou.com - where you can deposit money if buying goods from online auctions or classified sites. The money is only released to the seller when the goods arrive.

Look for seals of approval: The Consumers' Association runs an accreditation scheme for reputable sites. Mastercard is also preparing to launch a similar scheme. Alternatively, Egg and Barclaycard run online shopping malls, which they police. These schemes and services should also ensure that you do not receive unsatisfactory goods and services.

Keep your password safe: Most online sites require a user name and password before you can place an order. Treat your passwords with the same care as your cashpoint Pin.

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Directory of Online Shopping Websites in the United Kingdom