Australian regulator takes HSBC’s unit to task for failing to protect customers from scams
The Australian Securities and Investment Commission (ASIC) lodged a claim against HSBC Bank Australia in relation to 950 reports totalling A$23 million.
HSBC’s Australian unit is being sued by the country’s securities watchdog agency for failing to protect local customers from scams, resulting in A$23 million (US$14.65 million) of losses.
The Australian Securities and Investment Commission (ASIC) lodged a claim against HSBC Bank Australia in the Australian federal court on Monday in relation to 950 reports totalling A$23 million over a five-year period from January 2020 to August 2024.
Scams have picked up in recent years, as nearly 70 per cent of the claims, totalling A$16 million, occurred in the six months from October 2023 to March 2024.
HSBC Australia failed to have adequate controls in place to prevent and detect unauthorised payments and failed to comply with its obligations to investigate customer reports of unauthorised transactions and to promptly reinstate customers banking services in a timely manner, according to ASIC.