This is shocking, if true. A Search Engine Watch Forum thread has two accounts reporting the same issue.
I decided to use Phrase match for the whole campaign except one keyword. To my surprise, their system automatically added the Exact match types as well! Instead of a cute 40 keyword campaign, it balloned into 80-something.
One SEW member confirms this to be true;
Yes - this has been a big problem for me too.
He says this not only costs him money but also puts him at legal risk for trademark and copyright PPC claims.
Forum discussion at Search Engine Watch Forums.