Police officers are to be given specialist IT training under plans to combat identity theft and other online crimes.
A new cyber-crime unit will tackle credit card fraud and organised crime online, the Home Office said.
The Government has been criticised for not doing enough to combat internet-based crimes.
But Home Office minister Vernon Coaker said the Police Central e-crime Unit would co-ordinate the efforts of individual forces.
He said: "It is important that we stay one step ahead of criminals who increasingly use sophisticated computer networks and the internet to commit and facilitate crime.
"The Police Central e-crime Unit (PCeU) will also play a vital role in helping police forces across the country improve skills and techniques needed to clamp down on e-crime."
An estimated four million Britons have fallen victim to credit card fraud, and internet crime is said to be worth £50 billion every year.
Investigators have found credit card details can be bought online for as little as 50p.
The unit, which is based in the Metropolitan Police, will begin work early next year.
Last year a committee of peers said the internet was "the playground of criminals" and attacked the Government for "burying its head in the sand" over the issue.
