ASIC - Australian Securities & Investments Commission

HSBC Australia Fined $35M for Scam Protection Failures HSBC Bank Australia Limited faces a $35 million penalty after admitting to significant failures in protecting customers from scams, resulting in losses of tens of thousands of dollars, including life savings. ASIC and HSBC have approached the Federal Court for approval of this penalty. HSBC has already compensated around $21.5 million to affected customers and recovered $6.5 million. From January 2020 to August 2024, over 1,000 unauthorized transactions totaling $34.6 million were reported. HSBC acknowledged inadequate controls and delays in investigations, with cases taking an average of 144 days to resolve, exacerbating customer distress.