Court invalidates 65,000 hryvnia in loans taken out by fraudsters via Privat24

Financial institution fails to challenge loan annulment

The Khmelnytskyi Court of Appeal dismissed the appeal filed by Public Joint-Stock Company "PrivatBank", confirming the legality of the lower court's decision. According to the ruling, two loan agreements for amounts of 15,000 and 50,000 hryvnia (65,000 in total) were declared invalid. These loans were processed in the "Privat24" system after criminals gained access to the client's SIM card and bank cards.

Information regarding the progress of case No. 674/219/25 was published by the court's press service.

Mechanism of fraudulent loan acquisition

The conflict arose due to the appearance of two loan agreements in the bank's system that the account owner had not initiated. The man filed a lawsuit demanding that these contracts be declared invalid and the debt cancelled.

According to the plaintiff, on 25 June 2024, he lost his bank cards and the SIM card to which his phone number was linked. Third parties took possession of these items. Using the stolen cards, the criminals gained access to the "Privat24" remote banking service and concluded two loan agreements in the victim's name.

The fraudsters distributed the funds themselves: part of the money was transferred, and part was withdrawn. A pre-trial investigation was launched on this matter, in which the card owner was officially recognised as a victim.

Despite the existence of a criminal case, "PrivatBank" refused to annul the debt and stop accruing interest, so the man decided to defend his rights through the courts.

Bank's position and court's arguments

Initially, the case was heard by the Dunayevets District Court of Khmelnytskyi Oblast. It partially granted the claim, declaring both loan agreements invalid, but refused other requests. The bank disagreed with this decision and filed an appeal, demanding a full dismissal of the claim and a suspension of the civil case proceedings until a verdict is issued in the criminal case.

The bank's representatives insisted that it was necessary to wait for all the circumstances of the criminal offence to be established. However, the appellate panel rejected this motion, explaining that the absence of a verdict is not an obstacle to resolving a civil dispute.

The appellate court judges established that the plaintiff had not expressed any intention to conclude loan agreements. Third parties gained access to the app thanks to the stolen SIM card and payment instruments.

A key fact was that "PrivatBank" failed to provide adequate evidence that the client, through their actions or inaction, facilitated the illegal use of the PIN code or other confidential data required to conduct transactions.

The court also did not support the bank's argument regarding the plaintiff's allegedly incorrect choice of method for protecting their rights. The Court of Appeal noted that this position contradicts the legal conclusions of the Supreme Court, formulated in the ruling on case No. 545/1750/21.

Final decision

Following the review of the materials in case No. 674/219/25, the Khmelnytskyi Court of Appeal upheld the decision of the Dunayevets District Court. Thus, the loan agreements for a total amount of 65,000 hryvnia remained declared invalid, and the bank's appeal was dismissed.