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HSBC Australia Faces US$24.6mil Penalty over Scam Protection Failures
The bank will jointly seek court approval of the proposed penalty after ASIC said 950 scam reports led to $23 million in losses.
- On Thursday, HSBC Australia agreed to pay $35 million to settle a landmark Federal Court case after admitting its executives knew the bank was failing to protect customers from impersonation scams and did nothing.
- Fraudsters used software to "spoof" phone numbers, tricking customers into transferring cash; scammers netted $23 million between January 2020 and August 2024 while internal documents reveal the bank received "repeated red flags" that went unheeded.
- Internal documents showed that from 2021, anti-fraud products like BioCatch would "enhance" controls, yet the bank delayed implementation until June 2024. ASIC found HSBC took an average of 144 days to investigate customer complaints.
- HSBC has already paid around $21.5 million in compensation, with further payments expected. ASIC Chair Sarah Court said this settlement sends "a clear message that protecting customers from scams is a core responsibility of banks."
- The Australian government is currently developing the Scams Prevention Framework to strengthen protections across banks and telecommunications sectors. This landmark case establishes the first global precedent holding a bank accountable for customer scam losses.
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HSBC's Australia unit faces $24.6 million penalty over scam protection failures
·New York, United States
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Coverage Details
Total News Sources17
Leaning Left2Leaning Right4Center3Last UpdatedBias Distribution45% Right
Bias Distribution
- 45% of the sources lean Right
45% Right
L 22%
C 33%
R 45%
Factuality
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