Online banking fraud fell 32 per cent in the first half of 2011, as consumers and financial institutions upped their security game.
Losses resulting from online bank fraud hit 16.9 million between January and June 2011, the UK Cards Association found.
However, phone banking fraud losses rose to 8.6 million, representing a rise of almost 50 per cent.
Losses are appreciably lower than they were a few years ago and everyone involved in tackling fraud has reason to be encouraged.
Telephone scammers have been using standard tricks, such as pretending to be a bank or police representative to dupe victims into handing over financial information.
Overall there was a nine per cent reduction in fraud losses, hitting an 11-year low of 169.8 million.
"Losses are appreciably lower than they were a few years ago and everyone involved in tackling fraud has reason to be encouraged by this and that includes bank customers who, as their own front-line of defence, have certainly played their part too," said DCI Paul Barnard, head of the Dedicated Cheque and Plastic Crime Unit.
"However, there has been an increase in old fashioned scams criminals using distraction techniques and social engineering methods to get hold of people's cards or phone banking details. We are urging everyone to be on their guard."
The UK Cards Association said the overall drop in fraud was caused by a number of factors, including use of better fraud detection software and the roll-out of updated chip cards.
A KPMG study from earlier this year showed 2010 was the worst year ever for fraud.
