Cash machines at some Barclays branches are thought to have been used by Eastern European gangs to perpetrate "Lebanese loop" frauds, the Evening Standard reported.

ATMs in London, Essex, West Sussex, Leicestershire and Wales are all thought to have been affected, with hundreds of people losing their debit or credit cards.

Talking to the newspaper about the scams, a spokeswoman for Barclays said: "We are already tackling [the fraud] by upgrading our machines."

The Lebanese loop consists of a special device that can be fitted into an ATM's card slot.

During the scams, a small camera is also positioned over the machine's keyboard.

Customers entering their PINs are recorded by the camera, while the loop traps the card inside the cash machine, and a message appears on screen saying the card is inactive.

Many users then assume that their card has been swallowed by the ATM and walk away.

However, fraudsters can then retrieve the card by using the loop.

The bank is now taking steps to upgrade its systems in order to prevent credit card customers falling victim to ATM crime.

This is to be noted that debit and credit card fraud cost £609million last year.