FAULTS with chip and pin technology for debit and credit cards could cause an explosion of "electronic mugging," an East Lancashire MP has warned.

Now Ribble Valley Tory Nigel Evans is demanding an urgent meeting with Home Office ministers.

Mr Evans is chairman of the All Party Identity Fraud Group in the Commons. And he is alarmed at new reports about loopholes in the technology.

Lloyds Bank yesterday warned of flaws with chip and pin while oil giant Shell this week suspended all chip and pin transactions at 600 garage forecourts after it emerged £1million had been stolen from customers' accounts.

Mr Evans has written to the Parliamentary Under Secretary of State at the Home Office, Joan Ryan MP, who has responsibility for ID Fraud, asking for a meeting at the earliest opportunity to highlight his concerns over the many problems that have been raised in recent days over the use of chip and pin technology.

He said: "Recent reports have highlighted customers details were being stolen from Shell petrol stations. We have now learnt that the security problems have spread to other garage chains and hole in the wall machines which has led to Tesco revealing that it is changing the casings of its 2,000 ATMs to stop criminals from attaching cloning devices.

"Back in February, chip and pin was introduced by banks promising that it would virtually wipe out card fraud. But sadly it has had little effect.

"Instead we have seen an escalation of ways that criminals are able to steal our details and use them around the world.

"Cloned cards belonging to Britons have been used to withdraw more than £1million in cash from machines in the UK, Paris, Sri Lanka, India and Hong Kong.

"It now seems easier than ever to steal our details.

"The Government must act urgently to ensure the integrity of a system that was supposed to protect consumers but has increasingly led to the fleecing and electronic mugging of many people.

"The Government must do more to tackle this problem. I have written to Joan Ryan asking for guidance to be issued to all companies that use chip and pin technology on how to protect their customers and to seek a meeting with her."

A spokesman for the Association of Payment Clearing Services (Apacs) said fraudulent card use had dropped across most categories following the introduction of chip and pin. She added: "Chip and pin is doing its job."