In recent years, with the development of digital banking services, online loans have become widespread. While this service allows citizens to obtain a loan in a short time without visiting a bank, it also carries new legal risks.
As reported by the Supreme Court, Azerbaijani legislation allows banks to open bank accounts remotely and conclude loan agreements. According to rules approved by the Central Bank of Azerbaijan, when providing online services, banks may use enhanced electronic signatures, video calls, video recording, facial recognition, one-time confirmation codes (OTP), and other identification methods.
Recent disputes considered by courts show that in some cases, third parties obtain citizens' personal data, take out online loans in their name, and transfer the loan funds to their own accounts.
Judicial practice shows that sometimes citizens themselves provide others with one-time confirmation codes (OTP) sent to their mobile phones, banking app login credentials, or undergo facial recognition procedures at the request of third parties. This creates conditions for fraud against them.
Many believe that if they become victims of fraud, they bear no legal responsibility for loan obligations. However, from a legal standpoint, the situation is somewhat different. Citizens also bear responsibility for protecting their personal data. In particular, they must not share their FIN code, ID card or its copy, SMS confirmation codes, banking app login credentials, biometric data (facial recognition, fingerprints, etc.) with others, and must ensure their security.
Recommendations:
- Do not share your FIN code, ID card, or its copy with unknown persons;
- Ensure the security of your biometric data;
- Never disclose SMS confirmation codes to anyone;
- Regularly check banking notifications sent to your phone;
- If you change your mobile number, promptly inform your bank;
- Do not trust suspicious calls and messages;
- Regularly check your bank accounts;
- If a loan has been taken out in your name without your knowledge, immediately contact your bank and law enforcement agencies.
The Supreme Court also noted that online loans have become an integral part of modern banking services. They require banks to adhere to high security standards and citizens to be attentive to protecting their personal data.
Judicial practice shows that the mere fact of fraud is not sufficient to invalidate a loan agreement. When considering each specific case, the court assesses the bank's actions, its compliance with legal requirements, the citizen's own actions, and all evidence presented.
