ASIC sues HSBC Bank Australia for allegedly failing to adequately protect customers

In December 2024 ASIC announced that they have commenced a claim against HSBC Bank Australia for allegedly failing to protect customers from being scammed.

ASIC alleges that between January 2020 and August 2024, HSBC received approximately 950 reports of unauthorised transactions, resulting in customer losses of about $23 million. Almost $16 million of this occurred in the six months from October 2023 to March 2024.

In the claim ASIC alleges that HSBC:

• From January 2020, failed to have adequate systems and processes to ensure that significant, widespread or systemic non-compliance with its obligations to investigate reports of unauthorised transactions within specified timeframes and to promptly reinstate banking services to customers who reported unauthorised transactions; and
• From 1 January 2023 to 1 June 2024, failed to have adequate controls for the prevention and detection of unauthorised payments.

FD Legal hopes that this case will help protect scam victims and require banks to have better protections to prevent scams. If you are a HSBC customer and were the victim of scam where you did not authorise the transaction, we ask that you contact Financial Dispute Legal to discuss your circumstances and consider any rights to recover compensation on 1300 433 533 or enquiry@fdlegal.com.au