ASIC Seeks $35 Million Fine Against HSBC for Scam Prevention Failures Affecting 1,000+ Customers

Australia's corporate regulator ASIC is seeking a $35 million penalty against HSBC Bank Australia after the bank admitted to serious failures in scam prevention and customer protection between January 2020 and August 2024. During that period, HSBC received over 1,000 reports of unauthorized transactions totaling $34.6 million, with fraudulent reports surging approximately 380% in 2023 and 2024, largely driven by impersonation scams. According to ASIC, HSBC failed to maintain adequate controls within its transfer systems from May 2023 to May 2024 and took an average of 144 days to investigate customer complaints.

Affected customers lost tens of thousands of dollars, with individual cases ranging from $47,000 to $50,000. HSBC has already paid approximately $21.5 million in compensation and recovered $6.5 million for victims. ASIC Chair Sarah Court stated the case represents "one of the first of its kind globally" and sends a message that "protecting customers from scams is a core responsibility of banks."