15. 11. 2025 | Natalie Bezděková

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In recent months, a case has emerged that shows how easy it is to abuse the credential verification system at banks. One businessman lost almost CZK 2.5 million from his company account – twice in one month. In doing so, the perpetrators used fake powers of attorney and obtained the right to manipulate the account at the bank branch without informing the company operator in advance.

The owner of the affected company is Volodymyr, who runs a Czech transport company. The attackers presented documents at the branch that were supposed to look like a guardianship power of attorney – their verification clause was almost identical to an earlier original, which is also publicly available. In spite of this, the bank granted access to the new dispenser’s account and allowed cash and non-cash withdrawals.

For the first time, approximately CZK 1,5 million disappeared from the account. The man claims that he was completely unaware of the incident – no notification was sent to him about the change of authorisation, nor was he informed that the money had been transferred. When he went to check his account balance, he found that his funds were already gone. After filing a criminal report and a claim, he hoped the system had protected them and the situation could not happen again.

But the repeat came – exactly one month later, the company’s account was hit again. Another nearly one million crowns again went into someone else’s accounts after a false “power of attorney” document was raised again. The accused man claims that this time none of the bankers identified exactly who the proxy was, and again there was no external check or notification.The entrepreneur feels hurt and disappointed by the bank’s approach, which, in his opinion, did not show enough caution. For his part, he has filed another criminal complaint and is seeking compensation. Moreover, the situation has escalated – a change of management was made in the commercial register without his knowledge. The document shows a foreign person with a name identical to the information in the fake power of attorney.

The bank’s representatives admit that there are signs of fraud in these cases. They state that they are seeking legal protection and will consider criminal charges. However, they also stress that there is no obligation to automatically notify the account holder if another person obtains the right to dispose of the money on the basis of a power of attorney. This is supposed to be a perfectly normal situation under the terms of the contract, according to the bank.

The case thus raises an important issue – whether banking institutions do enough to verify the authenticity of the documents submitted and whether there should be an obligation to inform the client in a timely manner about changes in the authority to handle his account. The case raises questions about accountability, client protection and the need to modernise authorisation verification processes in Czech banks.

Photo source: www.pexels.com

Natalie Bezděková

I am a student of Master's degree in Political Science. I am interested in marketing, especially copywriting and social media. I also focus on political and social events at home and abroad and technological innovations. My free time is filled with sports, reading and a passion for travel.