Credit card fraud on the Internet is rare but when it does happen the criminals usually manage to obtain the details of a large number of cards in one go.
The most common place for this type of fraud to occur is when you go out and part with your card for a few minutes (like at a restaurant). In these situations the staff are usually paid about £100 for each card they swipe into a hand-held card reader. For Gold, Platinum and Black cards additional bonuses are paid to the swipers.
The banks don't particularly care, it is the merchant that loses out as the banks will take money from them if an order is placed with a fraudulent card. The merchants are often powerless to do anything since the police do not have the resources to investigate and the merchant themselves might be small and not have the resources in tracking down the fraudsters.
Banks need to be forced to take greater measures to protect merchants. For every fraudulent transaction carried out with a credit card, the customers are reimbursed by the banks and the banks take the money from the merchant.
This hurts our economy, the merchants either have to charge more for their goods to cover the cost of fraud or in some cases completely go out of business. :(