HSBC Australia, one of the country’s largest banks, is under fire for allegedly failing to protect its customers from scams. The Australian Securities and Investments Commission (ASIC) has launched a landmark lawsuit, accusing the bank of not doing enough to shield people from losing millions of dollars to fraudsters.
"This is the first case of its kind that ASIC has taken," deputy chair Sarah Court said. "We allege HSBC’s failures were widespread and systemic."
ASIC claims that HSBC lacked adequate systems to detect and prevent unauthorized payments, failed to properly investigate reports of fraud, and was slow to restore banking access for scammed customers. In some cases, ASIC says, customers were locked out of their accounts for months — with one person reportedly unable to access their account for 542 days.
Between January 2020 and August 2024, HSBC received 950 reports of unauthorized transactions, totaling $23 million in losses. Alarmingly, $16 million of those losses happened in just six months between late 2023 and early 2024, after scammers began impersonating bank staff to access accounts.
Court highlighted the devastating impact on victims, saying some customers lost as much as $90,000. "Scammers don’t discriminate," she added. "They can wipe out someone’s life savings in an instant. Banks must pull their weight in the fight against scams."
ASIC alleges that HSBC was aware of the risks by early 2023 but failed to address gaps in its fraud controls. The bank allegedly took an average of 95 days to restore access for scammed customers, leaving many without their money for extended periods.
In response, HSBC Australia said protecting customers remains a top priority. "We are considering the matters raised and will continue to cooperate with ASIC," a spokesperson said. "We are making significant investments in fraud prevention and response."
ASIC, meanwhile, is sending a clear message to all banks: if they fail to protect their customers, they will face consequences. "We won’t hesitate to take action when obligations aren’t met," Court said.
While it’s still too early to say what penalties HSBC could face, the case has already drawn significant attention as the first of its kind in Australia — and possibly the world.
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