AN EARLY-WARNING system which will help police fight credit card and

cheque fraud has been introduced at the Stratchclyde force's fraud unit.

Detective Superintendent Gordon Ferrie, head of the Strathclyde fraud

squad, said it was a considerable breakthrough.

''We have created another weapon in the detectives' armoury as we hit

the fraudsters. Although still in its infancy, this system has

tremendous potential,'' he said.

With #8000 from the four main clearing banks -- Bank of Scotland,

Royal Bank, Clydesdale and TSB -- the squad's previous card index system

has been computerised, allowing officers quick response to a fraud

anywhere in Strathclyde and giving an early-warning system for other

cheque and card units throughout Scotland.

Detective Superintendent Ferrie said:''These frauds know no

boundaries. A holidaymaker travelling in Australia or Hong Kong can

return to this country and find that his signature has been copied and

his credit card has been falsified after being passed in good faith.''

The new system will help curb card fraud until the use of ''smart''

cards with dates of birth, fingerprints and other details encoded on

them becomes widespread.

The banks' collaboration followed the rise of the cost of card and

cheque fraud in Strathclyde to #10m in the past year, to about #40m in

Scotland and 10 times that nationally.

Mr Charles Love, chairman of the committee of Scottish clearing

bankers, said: ''It is evident that no single body can hope to succeed

in reducing plastic card and cheque fraud without the assistance of

others. The four Scottish banks and Strathclyde police are totally

committed to working in partnership.''