Government ministers believe the introduction of Chip and PIN has helped to cut face-to-face retail fraud significantly. Losses have decreased by 43% in the six months to June 2006, following on from a 35% fall the year before.
Total card fraud fell by 5% during the period, mainly thanks to the introduction of Chip and PIN.
Internet, phone and mail order fraud has increased, but at a much slower rate of 5% rather than the 29% seen between 2004-2005.
APACS director Sandra Quinn said: "These latest fraud figures show that the industry's efforts are making their mark."