Australian regulator sues HSBC's unit over customer scam protections

HSBC's Australian unit is facing a lawsuit from the Australian Securities and Investment Commission (ASIC) for failing to protect customers from scams, leading to A$23 million in losses. The claim involves 950 reports of unauthorized transactions from January 2020 to August 2024. ASIC alleges that HSBC did not have adequate controls to prevent scams and took too long to investigate customer reports. Some investigations took up to 145 days, and one customer waited 542 days to regain account access, far exceeding local codes of conduct. This lawsuit marks the first time ASIC has held a financial institution accountable for widespread scam complaints. ASIC is seeking significant penalties and aims to emphasize the importance of banks' obligations to protect customers. HSBC has acknowledged the claim and stated it will cooperate with ASIC.