Most countries of the world and their police services report daily to the Global Interpol headquarters in Lyon – France, about the lost/Theft of passports. These reports are automatically added to the database of every international border crossing in the world.
In a case when an Israeli citizen reports to the Israeli police or the local police about the loss of his passport, and after that his passport is found by him, he should be aware that his passport has already been reported to the Global Interpol as lost and is written in the world's lost passports database. If later found- this passport cannot be used in future and will cause delays upon entry/exit in many border crossings around the world.
In such a case, The citizen is required to obtain a travel document at the nearest Israeli mission