HSBC faces lawsuit from Australian regulator over scam protection failures

Australia's markets regulator, ASIC, has sued HSBC for failing to protect customers from scams, claiming "widespread and systemic failures." The lawsuit follows losses of A$23 million ($14.6 million) by HSBC Australia customers from 2020 to 2024. ASIC's deputy chair stated that the case is the first against a financial institution regarding scams. HSBC is accused of being slow to investigate unauthorized transactions, taking an average of 145 days, and sometimes suspending accounts for extended periods. The regulator highlighted that Australians lost A$2.7 billion to scams last year, emphasizing the need for banks to improve their customer protection measures. HSBC is currently reviewing the allegations and plans to cooperate with ASIC.