To combat credit card fraud, a Chip and PIN system has been initiated by banks and financial institutions when issuing credit cards. Protection for credit cards had previously been a global issue, as the security of a card was compromised if the card numbers and the card itself were accessed by someone other than the card holder.

Chip and PIN credit card security has enabled cardholders to carry their credit card without the fear of having their credit account 'cleaned out' by fraudsters, as a PIN number is required to validate a transaction. There are also a number of other ways that cardholders can protect against credit card fraud.

The Chip and PIN system works very simply. A credit card will have a chip embedded in the card, much like the chip on a sim-card for a cellular phone. When the card is used, the cardholder will have to enter a PIN number linked to the card, in order for their transaction to be approved.

The use of the Chip and PIN system has revolutionised credit card fraud protection. If a card is missing or has been stolen, it should always be cancelled. However, with increased credit card security, the likelihood of credit card fraud occurring has decreased dramatically.

While the Chip and PIN system does not eradicate credit card fraud altogether, it does allow for much greater credit card security. Yet care should always be taken when in possession of a credit card. Make sure that you are not watched when entering your PIN number and do not let a stranger help you at an ATM. Always cancel your credit card immediately if lost and never let the card into the possession of someone else.

The card belongs to the financial institution that issued it, but it is the individual card holder's responsibility to ensure that the credit card is safe and not misused.