Children Spend Millions in Unauthorised Spree

By Cpp, PRNE
Tuesday, December 14, 2010

Kids Rack up Millions Using Parents' Accounts

YORK, England, December 15, 2010 - Children are spending GBP64 million (1) online a year without their
parents' knowledge, putting the adults at risk of card fraud.

A new study commissioned by life assistance company CPP ( reveals that one in seven online purchases made by
British kids aged 7-16 are done behind their mums and dads' back.

Two thirds of kids are now hitting the cyber streets, annually spending
GBP448 million (2) and eight in ten use their parents' bank cards, online
accounts and paypal. It is time that parents woke up to the risks of letting
their children shop unsupervised on the internet. With three quarters of
children not checking the security of websites when shopping online, CPP
( is warning parents to keep a close eye on their
children, otherwise they could risk their card details being misused by
internet fraudsters.

The peak of spending is set to increase during the Christmas period as a
quarter of kids say they will or plan to buy presents online, a 10 per cent
increase on kids online Christmas purchases last year potentially putting
even more parents at risk of card fraud.

Sarah Blaney, card fraud expert from CPP ( said:
"Parents need to educate their children about of the very real risks of
shopping online. They need to ensure that their children only put sensitive
information into sites that are encrypted, trusted and secure and teach them
about what signs to look for in a safe site.

"It's clear that online fraud is a serious problem in the UK with
card-not-present fraud accounting for over GBP260 million in 2009 (3). On a
wider level consumers need to be responsible and take preventative steps to
safeguard their sensitive information. In particular, signing up to
MasterCard's SecureCode or Verified by Visa is a useful way of preventing
fraudulent transactions."

The research also found that children are buying a range of items,
including; computer games (51 per cent), books (42 per cent), films (30 per
cent) and phone applications (18 per cent).

Unsupervised access to the internet can lead to other issues in addition
to the risk of fraud. For example, nearly a quarter of children have bought a
video game or film that is for an older age and a handful of children claimed
to have purchased cigarettes (one per cent), alcohol (one per cent) and even
weapons and solvents (one per cent).

CPP ( is working to raise awareness of the dangers
of card fraud. CPP's Card Protection policy insures all credit and debit
cards from fraudulent use if they are lost or stolen.

Notes to editor

(1) - According to ONS data there are 6,778,693 children aged 7-16 years
in the UK. Research shows that 63 per cent of them purchase items online =
4,270,577. The average amount spent by children online is GBP15 per purchase
and they make on average 7 purchases a year. One in seven of these purchases
is made behind their parents back. GBP15 x 4,270,577 = GBP64,058,655

(2) According to ONS data there are 6,778,693 children aged 7-16 years in
the UK. Research shows that 63 per cent of them purchase items online =
4,270,577. Spending on average GBP15 per purchase and making 7 purchases a
year. 4,270,577x 7 x GBP15 = GBP448,410,585

(3) UK Cards Association 2009 results, published March 2010

Research Methodology

Research was carried out online by Opinion Matters among 1030 children
aged 7-16 years old between 10th September and 1st October 2010.

Corporate Background Information

The CPPGroup Plc

The CPPGroup Plc (CPP) is an international marketing services business
offering bespoke customer management solutions to multi-sector business
partners designed to enhance their customer revenue, engagement and loyalty,
whilst at the same time reducing cost to deliver improved profitability.

This is underpinned by the delivery of a portfolio of complementary Life
Assistance products, designed to help our mutual customers cope with the
anxieties associated with the challenges and opportunities of everyday life.

Whether our customers have lost their wallets, been a victim of identity
fraud or looking for lifestyle perks, CPP can help remove the hassle from
their lives leaving them free to enjoy life. Globally, our Life Assistance
products and services are designed to simplify the 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
life and worry less.

Established in 1980, CPP has 10 million customers and more than 200
business partners across Europe, North America and Asia and employs 1,900
employees who handle millions of sales and service conversations each year.

In 2009, Group revenue was GBP292.1 million, an increase of more than 12
per cent over the previous year.

In March 2010, CPP debuted on the London Stock Exchange (LSE).

What We Do:
CPP provides a range of assistance products and services that allow our
business partners to forge closer relationships with their customers.

    We have a solution for many eventualities, including:

    - Insuring our customers' mobile phones against loss, theft and damage

    - Protecting the payment cards in our customers' wallets and purses,
      should these be lost or stolen

    - Providing assistance and protection if a customer's keys are lost or

    - Providing advice, insurance and assistance to protect customers against
      the insidious crime of identity fraud

    - Assisting customers with their travel needs be it an emergency (for
      example lost passport), or basic translation service

    - Monitoring the credit status of our customers

    - Provision of packaged services to business partners' customers

    CPP is an award winning organisation:

    - Winner in the European Contact Centre Awards, Large Team of the Year
      category, 2010

    - Finalist in the European Contact Centre Awards, Best Centre for
      Customer Service, Large Contact Centre of the Year categories, 2010

    - Winner in the National Sales Awards, Contact Centre Sales Team of the
      Year category, 2010

    - Finalist in the National Insurance Fraud Awards, Counter Fraud
      Initiative of the Year category, 2009

    - Finalist in the European Contact Centre Awards, Large Team and Advisor
      of the Year categories, 2009

    - Named in the Sunday Times 2008 PricewaterhouseCoopers Profit Track 100

    - Finalists in the National Business Awards, 3i Growth Strategy category,

    - Finalist in the National Business Awards, Business of the Year
      category, 2007, 2009 and Highly Commended in 2008

    - Named in the Sunday Times 2006, 2007, 2008 and 2009 HSBC Top Track 250

    - Regional winner of the National Training Awards, 2007

    - Winner of the BITC Health, Work and Well-Being Award, 2007

    - Highly Commended in the UK National Customer Service Awards, 2006

    - Winner of the Tamworth Community Involvement Award, 2006. Finalist in

    - Highly Commended in The Press Best Link Between Business and Education,
      2005 and 2006. Winner in 2007

    - Finalist in the National Business Awards, Innovation category, 2005

For more information on CPP click on

For more information, please visit or

For more information or to arrange a time for interview with CPP's card fraud expert, Sarah Blaney, please call Band & Brown Communications: Eoghan Hughes - +44(0)20-3451-9413 / +44(0)7852-881-983; Sarah Davidson - +44(0)20-3451-9405 / +44(0)7731-462451

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