Holidaymakers are warned to take care of their credit cards as overseas fraud shot up by 77 per cent between 2006 and 2007.

Fraud on credit and debit cards cost Brits £207.6 million last year, insurer CPP found, with France, Italy and Spain the top spots for card crime.

In the period from June 2007 to June this year, no less than 7000 cards were reported stolen from Brits abroad, according to the research.

Kerry D’Souza, card fraud expert from CPP, said: “We are urging Brits to be particularly vigilant when they travel abroad this summer.

“When relaxing on holiday, people can be less aware of their belongings and more prone to card fraud and mugging scams. We are encouraging people to contact their banks before travelling, to keep their valuables out of sight once abroad, and to be especially careful when they use their credit and debit cards.”

According to card and payments association Apacs, paying with plastic is very popular abroad – in 2007, card purchases accounted for 50 per cent of all overseas spending.

Sandra Quinn, director of communications at APACS, added: “As a nation we are all using our cards more frequently abroad so it pays to be aware of any extra costs that may be incurred for using them overseas, as well as taking steps to protect them from fraud.

“Card thieves are hoping to catch us relaxed and off-guard when we are overseas, so we need to take the same sensible precautions with our cards abroad as we would in the UK.”

CPP advises travellers taking their cards to keep them in a safe if they are in your hotel room and keep your eye on them when you are out and about.

The firm also recommends telling your bank if you are away – some will stop your account if they see ‘suspicious activity’, which may include overseas transactions.