Our research found there has been a 17% increase in lost and stolen cards abroad. Do you take suitable precautions to prevent your cards being lost or stolen?. Read more to find out how to avoid being a victim of card fraud abroad.

1. Lost and
Stolen Cards
A CPP white paper
July 2009

2. Contents
1.1 Foreword
1. Industry Facts
1.3 Research methodology
1.4 Key Findings
- There has been a 17 per cent increase in lost and stolen cards abroad
- ATM charges, the exchange rate and card fraud are the top three
concerns when travelling abroad
- A fifth of consumers only use cash when abroad
- People check their bank statements on their return, but have an
inconsistent attitude to financial security when abroad
- A quarter of consumers are more concerned about card fraud
this year
- Most theft and loss takes place in bars or on public transport
- 43% said card theft/loss was extremely stressful
- A quarter of people said fraud took place as a result of the theft/loss
1.5 Conclusion
1.6 Avoiding card fraud abroad
1.7 Further Information
1.8 About CPP
Lost and Stolen Cards July 2009

3. Introduction 3
1.1 Foreword
Despite the recession, the annual
family holiday does not seem to be
adversely affected with many
families still planning on travelling
abroad this year. According to this
report over 14 million people will be
jetting off for a holiday and whilst
many will be vigilant with their
personal possessions, there are
many who will not take adequate
precautions despite card theft being
Card fraud
abroad on an extremely stressful episode.
UK-issued
The most recent payment statistics show UK consumers used their payment cards for
£27.8bn of overseas transactions in 2008, 10% up on 2007. The ubiquitous use of plastic,
the reduced reliance on travellers’ cheques and the frequency of international travel are
cards went driving these transactions, and at the same time, driving an increase in the number of lost
and stolen payment cards.
up 11% At CPP we have noticed a significant increase in policyholders calling our emergency loss
reporting line in the last 12 months and therefore a greater need for CPP to provide
in 2008 overseas assistance. The increased frequency of theft and loss will contribute to the rise in
card fraud abroad on UK-issued cards, which went up 11% in 2008 to £230.1m. Lost and
to £230.1m stolen cards are not responsible for all this fraud as a key driver for fraud abroad is lost and
stolen UK-card details being used to make fake magnetic stripe cards for use in countries
yet to upgrade to Chip and PIN.
What this report highlights is that consumer behaviour is still not consistent with protecting
financial information and more needs to be done to reduce the risk of theft and fraud;
perhaps through education and awareness. Nearly all victims report the theft and loss of
their payment cards abroad as a very stressful experience, highlighting the continued need
to provide rapid assistance, support and professional resolution services.
Lost and Stolen Cards July 2009

4. 4
1. Industry Facts
Total card fraud and fraud abroad on UK-issued cards continues to increase despite the
best efforts of the industry to control it.
- Total card fraud losses totalled £609.9m in 2008 up 14 per cent on 2007
Fraud on - Fraud abroad committed by criminals using stolen UK-card details in countries
yet to upgrade to Chip and PIN totalled £230.1m up 11% and double since 2006
lost and - There has been a marked decline of retailer or face-to-face fraud in countries
using the Chip and PIN verification system, for example, France, where Chip
stolen cards and PIN roll out has been completed. However, fraud on UK-issued cards in
countries not using Chip and PIN has increased. In the USA fraud has
in the UK increased 181% since 2005, to £31.7m in 2008 and it is the top country for
fraud abroad on UK-issued cards
totalled - Fraud in Canada and Australia has also increased with fraud losses in both
countries standing at £10.8m. There is also significant fraud in Spain (£10.1m)
£54.1m in and Italy (£8.3m)
- As more and more countries implement their Chip and PIN roll-outs, it is
2008 expected more and more fraud will migrate towards countries such the USA,
which currently has no plans to implement secure verification
- Bahrain is the latest country to rollout Chip and PIN technology – from June 30
2009 all banking institutions have to issue new debit and credit cards with the
secure microchip technology
- Fraud on lost and stolen cards in the UK totalled £54.1m in 2008, down 4%.
Currently speaking, lost and stolen cards can be used in shops that do not have
Chip and PIN verification, or they can be used to commit fraud via a telephone,
internet or mail order transaction. Thanks to Chip and PIN, retailer fraud is at its
lowest since the industry collation of fraud losses began in 1991
- It will be interesting to monitor lost and stolen fraud figures once contactless
payments are rolled out across the UK – as Chip and PIN verification is only
required to reactivate the contactless functionality once a cumulative number
of transactions or spend is reached.
Source: APACS – the UK’s payments association 2008
1.3 Research Methodology
CPP commissioned research in June and July 2009 to look at the issue of payment cards
being stolen or lost overseas, and whether consumer attitudes to financial security were
contributing to the upward trend.
A representative sample of 2,006 UK credit and debit card holders aged 18+ were
questioned by Tickbox.net/Opinion Matters.
The report also draws on figures from APACS, the UK’s payment association.
Lost and Stolen Cards July 2009

5. 5
1.4 Key Findings
There has been a 17 per cent increase in lost and stolen cards abroad
Between June 2008 and May 2009 there was a 17 per cent year-on-year increase for
emergency loss reports handled by CPP outside the UK (8,170 verses 6,984). The top
countries for loss reports are Spain, France and the USA.
With over 12 million UK visitors to Spain annually, it is not surprising this popular overseas
destination has twice as many incidences of theft and loss.
A number of other popular destinations have moved up the list including Thailand (from
fifth to fourth), Portugal (from eleventh to seventh), and Greece (from ninth to eighth).
Losing your cards is a huge inconvenience, which can be particularly stressful in an
overseas country where you might not speak the language and don’t know what to do. In
countries that have not adapted Chip and PIN verification, for example, America, Canada
and Australia the risk of retailer or face-to-face fraud is much higher as a signature is all
that will be required to authorise payment. The threat of card-not present fraud (over the
phone, internet and mail order), however, is prevalent across all countries as a criminal has
all the details on the cardholder’s payment card – this emphasises the urgent need to
cancel lost and stolen cards immediately.
Some countries not on the tourist trail, but that make the list of countries where CPP has
helped policyholders include Afghanistan (11), the Lebanon (7) and Iraq (3).
CPP Data: Number of loss reports outside the UK
Rank Country Number of emergency Rank last year
loss reports (outside the UK)
1 Spain 1736 1
2 France 742 2
3 USA 579 3
4 Thailand 374 5
5 Italy 349 4
6 Australia 304 6
7 Portugal 181 11
8 Greece 155 9
9 South Africa 151 10
10 Germany 150 8
Source: CPP data – loss reports during June 2008 to May 2009 by non-UK countries
Lost and Stolen Cards July 2009

6. 6
ATM charges, the exchange rate and card fraud are the top three concerns
when travelling abroad
Hidden ATM charges, the fall in the value of the pound from historic highs and the threat
of card fraud are the main concerns of British holidaymakers travelling overseas.
Other concerns are their cards will be cloned; will have additional transactions added and
that they may be taken out of sight when paying for goods and services. 7% of travellers
think it is too much trouble to tell their bank they are going abroad and 6% do not bother
taking their payment cards on holiday perhaps preferring to take other forms of payment
such as cash and traveller cheques.
Those aged 45-54 are the most concerned about fraudulent activity (33%) verses only 18%
of 16-24 year olds. This younger demographic are also least likely to consider telling their
bank they are travelling abroad. Those aged 16-34 are, however, the most concerned
about being charged for using foreign ATM machines.
Q: Which of the following statements do you agree with when abroad?
7% of
travellers
think it is
too much
trouble to
tell their
bank they
are going
abroad
Lost and Stolen Cards July 2009

7. 7
0% of consumers only use cash when abroad
Perhaps because of the threat of card fraud, nearly one fifth of travellers report only taking
cash abroad on holiday, however, the majority (39%) use a combination of payment
methods.
16-24 year olds are most likely (30.2%) to exclusively use cash perhaps because they are
most concerned about expensive ATM charges, whereas those aged 45-54 are the least
likely (14.7%) to rely solely on cash.
Ironically, consumers put themselves more at risk if they decide to only use cash as debit
and credit cards can be cancelled before any fraud occurs. The loss of cash also means
that holidays could be ruined as victims may be left with no funds in the short-term.
Cardholders are also protected by the Banking Code for card fraud as long as they have
not acted with unreasonable care, for example, carrying their PIN number with their cards.
Q: Which of the following payment methods are you reliant on when you go abroad on holiday?
Over half of
consumers
check their
receipts
against
their bank
statements
when they
return home
People check their bank statement on their return, but have inconsistent
attitude to financial security when abroad
Over half of consumers check their receipts against their bank statements when they
return home and 30% take a note of all their card details or use a concealed money belt to
protect their personal possessions when abroad.
Lost and Stolen Cards July 2009

8. 8
28% of consumers also informed their bank they are going abroad – probably so their
cards are not blocked by what looks like an unusual transaction. According to APACS – the
UK’s Payment Association, however, most banks do not have the infrastructure to act on
this information, and it is better advice to give your bank an up-to-date mobile phone
number. This is so they can directly check with the cardholder if a transaction is genuine,
or not, before deciding to block the card. The big rise in fraud abroad on UK-issued cards
in 2008 (£230m, up 11%) is one reason banks and card companies are being extra vigilant
about overseas transactions, which can sometimes result in legitimate transactions being
declined. Last year, Britons used their payment cards for £26.8bn of overseas transactions,
10% up on 2007.
More concerning, 28% have hidden cash and cards in their hotel room rather than use the
hotel safe, 13% let waiters take their cards out of sight and 12% leave their bags
unattended on their sun-lounger - behaviour that puts them at real risk from card fraud.
Those aged 55+ are most likely to look after their personal possessions whilst abroad and
twice as likely (61.8%) to check their statements against receipts when they return home
than those aged 16-24 (33%).
Q: Which of the following statements do you agree with when abroad?
Lost and Stolen Cards July 2009

9. A quarter of consumers are more concerned about card fraud this year
Looking generically at the issue of card fraud abroad, a quarter of people are more
concerned compared to twelve months ago. Surprisingly men are more concerned than
women. Not surprisingly those aged 55+ are most concerned about fraud (29%).
Regionally, Belfast (45%), Sheffield (36.8%) and Cardiff (31.9%) are the cities most
concerned about increased card fraud. Birmingham (16.6%), Edinburgh (21.5%) and
Norwich (23.8%) are least concerned.
Q: Are you more or less worried about credit / debit card fraud compared to this time last year?
Regionally,
Belfast,
Sheffield and
Cardiff are
the cities
most
concerned
about
increased
card fraud
Lost and Stolen Cards July 2009

10. 10
Most theft and loss takes place in a bar or on public transport
As you might expect most British people have their wallets or purses stolen in a bar (24%),
or on public transport (15%). Nearly a quarter (24%) did not know where the theft or loss
took place, which is not unsurprising. Nearly 6% have their wallets and purses stolen at
the airport, which is undoubtedly a terrible start to a holiday.
When asked how stressful card theft/loss is, the overwhelming majority (95.5%) said it
was quite, very and extremely stressful with 43.3% specifically saying it was extremely
stressful. This substantiates the value in Card Protection; a product designed to assist
policyholders in cancelling and reordering all lost/stolen cards with one free phone call
from anywhere in the world, 24 hours a day.
Women (47%) are more likely to report it stressful than men (36%) perhaps because the
theft took place from the person. All ages reported the theft/loss as stressful.
Q: Where did the loss/theft take place?
Lost and Stolen Cards July 2009

11. 11
A quarter of people said fraud took place as a result of the theft/loss
26% of people said fraud occurred as a result of losing or having their cards stolen or lost.
This was slightly higher for women (28%); there is no obvious reason for this other than it
may have taken women slightly longer to report the theft or they pay more attention to
their financial affairs. Those aged 25-34 are slightly more aware of any fraud happening as
a result (33%) than the other age groups questioned.
Q: Did any fraud take place as a result of the loss/theft?
26%
of people
said fraud
occurred as
a result of
losing or
having their
cards stolen
or lost
Lost and Stolen Cards July 2009

12. 1
1.5 Conclusion
With holidays still a priority for people despite the recession, it is not surprising there has
been a 17% increase in the number of lost and stolen cards reported to CPP over the past
12 months.
With Brits using their card abroad more than ever – the decline of travellers’ cheques, and
the ubiquitous use of plastic, it is no surprise that a quarter of people are more concerned
about fraud this year. Other concerns revolve around expensive ATM charges, the volatile
exchange rate and card fraud. As a result of the worries around card fraud, a fifth of
consumers will only use cash when abroad. Ironically, paying by card is the most
convenient and safest way to pay for items overseas. As long as cards carry an
international card scheme brand, such as American Express, MasterCard or Visa, they can
be used at most shops and ATMs around the world. Importantly consumers will get their
money back from their credit card company if goods are faulty or are not delivered and
they have spent between £100 and £30,000 under Section 75 of the Banking Code. This
protection does not apply to debit card purchases.
Furthermore cash withdrawal fees from foreign ATMs are normally charged at around 2% -
a cost some consumers in this report have voiced concerns about. It is, however, much
cheaper to withdraw money via debit cards from cash machines than to exchange cash
locally. As in the UK, interest charges apply for cash withdraws on credit cards, so
consumers should check their card issuers’ charges to avoid any unexpected costs.
As you might expect most theft and loss takes place in bars and restaurants and a quarter
said fraud took place as a result of their cards going missing. Whilst half of consumers
check their receipts against their statements on their return, many have a lax or
inconsistent attitude to financial security when abroad – a significant minority hide cash
and cards in their hotel room despite facilities and housekeeping having access to their
rooms. Just as worrying consumers are still letting their cards disappear out of their sight
in restaurants and shops allowing them to be easily cloned and copied for CNP fraud –
behaviour it could be argued is inconsistent with acting with reasonable care.
Most theft Not surprising, the vast majority said having cards stolen or lost abroad was extremely
stressful.
and loss
takes place
in bars and
restaurants
Lost and Stolen Cards July 2009

13. 13
1.6 Avoiding card fraud
Kerry D’Souza, is a card fraud expert at CPP and offers the following advice to consumers
to help protect themselves from payment card fraudsters. Kerry has over ten years’
experience and is responsible for CPP’s industry-leading Card Protection product that
assists people in the event of lost and stolen payment cards.
Kerry is media trained across print and broadcast and is available for media interviews on
the issue of payment fraud.
CPP’s top tips to reduce the chances of falling victim to card fraud abroad:
- Don’t carry multiple debit/credit cards in a wallet
- Don’t leave belongings unattended while swimming or sunbathing
- Don’t hang your bag on the back of a chair
- Don’t carry debit/credit cards loose in a bag or pocket
- Make sure your bank has up-to-date contact details for you ,including your
mobile phone number incase they need to check if transactions are genuine
- If your cards are registered with a Card Protection company make sure you
have their emergency 24-hour loss reporting number
- Don’t let a waiter/shop assistant take your debit/credit card out of sight
- Don’t let someone else take money out on your behalf
- Use a safe rather than leaving your debit/credit cards in a hotel room
- Check your receipts against your statements when you get home
1.7 For further information please contact:
Nick Jones
PR and Communications Manager
CPP Group Plc
Holgate Park
York YO26 4GA
Tel 0104 544 387
E-Mail nick.jones@cpp.co.uk
Web www.cppgroup.com
Lost and Stolen Cards July 2009

14. 14
CPP is an award- 1.8 About CPP
winning organisation:
The CPP Group Plc (CPP) is an international marketing services business offering bespoke
- Named in the
customer management solutions to multi-sector business partners designed to enhance
Sunday Times 008
PricewaterhouseCoopers
their customer revenue, engagement and loyalty, whilst at the same time reducing cost to
Profit Track 100 deliver improved profitability.
- Finalists in the National This is underpinned by the delivery of a portfolio of complementary Life Assistance
Business Awards, 3i Growth products, designed to help our mutual customers cope with the anxieties associated with
Strategy category, 008 the challenges and opportunities of everyday life.
- Finalist in the National Whether our customers have lost their wallets, been a victim of identity fraud or looking
Business Awards, Business for lifestyle perks, CPP can help remove the hassle from their lives leaving them free to
of the Year category, 007
enjoy life. Globally, our Life Assistance products and services are designed to simplify the
and Highly Commended
in 008
complexities of everyday living whether these affect personal finances, home, travel,
personal data or future plans. When it really matters, Life Assistance enables people to live
- Named in the Sunday Times life and worry less.
006, 007 and 008 HSBC
Top Track 50 companies Established in 1980, CPP has 11 million customers and more than 200 business partners
across Europe, North America and Asia Pacific and employs 2,000 employees who handle
- Regional winner of the
National Training Awards,
16 million consumer sales and service conversations each year.
007 In 2008, Group revenue was £259.5 million, an increase of more than 15 per cent over the
- Winner of the BITC Health, previous year. This is more than five times the sales level of 2000.
Work and Well-Being
Award, 007 What We Do:
- Highly Commended in the CPP provides a range of assistance products and services that allow our business partners
UK National Customer to forge closer relationships with their customers.
Service Awards, 006
We have a solution for many eventualities, including:
- Winner of the Tamworth
Community Involvement - Insuring our customers’ mobile phones
Award, 006. Finalist in
- Protecting the payment cards in our customers’ wallets and purses, should
008
these be lost or stolen
- Highly Commended in The
Press Best Link Between - Providing assistance and protection if a customer’s keys are lost or stolen
Business and Education, 005
- Providing advice, insurance and assistance to protect customers against the
and 006. Winner in 007
insidious crime of identity fraud
- Award Finalist in the
National Business Awards, - Offering advice to people considering legal action and cover for the costs
Innovation category, 005 involved in taking action on a range of legal issues
- Award finalist for the 003 - Providing discounts on everyday lifestyle commodities
The Royal Bank of Scotland
Sunday Times Business - Monitoring the credit status of our customers
Awards
- Recognised as one of the
Growth Plus Europe 500 For more information on CPP visit:
www.cppgroup.com
companies
Lost and Stolen Cards July 2009