A Kyiv resident accuses Oschadbank of losing 14,509 hryvnias from her card. What was the court's decision?

A total of 14,509 hryvnias was withdrawn from the woman's card without her knowledge. She accuses Oschadbank of inadequate protection of funds and demands the return of the specified amount. This was stated in the decision of the Pechersk District Court of Kyiv, published on January 2, 2025.

On July 13, 2024, funds amounting to 14,509 hryvnias were withdrawn from the woman's card through fraudulent actions. She promptly reported this incident to an Oschadbank employee. The client believes that since the withdrawal of funds occurred without her knowledge, the bank failed to ensure proper protection and security of the funds, and therefore is obligated to return the money to her account.

"According to Article 87 of the Law of Ukraine 'On Payment Services', the payer is responsible to the payment service provider servicing them in accordance with the terms of the contract concluded between them for the provision of payment services. The procedure for issuing/acquiring payment instruments, including electronic payment methods and prepaid payment instruments, and carrying out settlements using them is regulated by the Regulation on the Procedure for Issuing and Acquiring Payment Instruments, approved by NBU Resolution No. 164 dated July 29, 2022 (hereinafter referred to as Regulation No. 164). According to paragraph 140 of Section VII of Regulation No. 164, the user is obliged not to disclose and not to otherwise reveal individual account information and/or other information that enables the initiation of payment transactions, and immediately after becoming aware of the loss of such information and/or payment instrument, to notify the issuer in the manner and through the channels of communication specified in the contract between the issuer and the user. The card of another bank was confirmed by the plaintiff's biometric data and/or access code. Access to the remote banking service system (DBO) Mobile Banking 'Oschad 24/7' and the operations for transferring funds were performed correctly, which is only possible with the presence of bank card details, SMS passwords, and push notifications sent to her financial phone, known exclusively to her," Oschadbank stated.

What was the court's decision?

The court denied the woman's claim. Transactions transferring funds totaling 14,500 hryvnias were carried out on July 13, 2024, via the internet using the 'Oschad 24/7' system, with authorization and login completed using the payment card details, including the CVV code, as well as the financial number and codes received in SMS messages on the financial number, which are known only to the cardholder. JSC 'Oschadbank' is not liable for these transactions.

"The court established that the transactions using the internet resource were conducted correctly with all necessary payment card details, indicating the bank's lack of fault in executing the client's order to transfer funds from their account. The initiation of transfers via the plaintiff's card was carried out through electronic identification of the client's electronic means. Thus, considering that the transactions for transferring funds were executed using the payment card details, including the CVV code, which are known only to the cardholder, JSC 'Oschadbank' is not liable for these transactions, and therefore the claims must be denied," the court emphasized.