HSBC Australia is facing a lawsuit from ASIC for allegedly failing to prevent customers from falling victim to scams.
The case marks the first time ASIC has taken such legal action against a bank, according to their deputy chair, Sarah Court.
ASIC claims that HSBC’s failure to implement adequate fraud controls led to widespread unauthorized transactions.
The watchdog also accuses the bank of neglecting to investigate reports of fraudulent payments in a timely manner.
Between January 2020 and August 2024, 950 reports of fraudulent transactions were made, amounting to $23 million in losses.
A significant portion of these losses occurred between October 2023 and March 2024, according to ASIC’s allegations.
Customers were often targeted through scam emails and text messages, leading to significant financial losses.
Despite being aware of the risks and gaps in its fraud controls, HSBC Australia allegedly took too long to restore access to affected accounts.
