Published • loading... • Updated
HSBC Australia Faces US$24.6mil Penalty over Scam Protection Failures
The bank will jointly seek court approval of the proposed penalty after ASIC said 950 scam reports led to $23 million in losses.
- On Thursday, HSBC Australia agreed to pay $35 million to settle a landmark Federal Court case after admitting its executives knew the bank was failing to protect customers from impersonation scams and did nothing.
- Fraudsters used software to "spoof" phone numbers, tricking customers into transferring cash; scammers netted $23 million between January 2020 and August 2024 while internal documents reveal the bank received "repeated red flags" that went unheeded.
- Internal documents showed that from 2021, anti-fraud products like BioCatch would "enhance" controls, yet the bank delayed implementation until June 2024. ASIC found HSBC took an average of 144 days to investigate customer complaints.
- HSBC has already paid around $21.5 million in compensation, with further payments expected. ASIC Chair Sarah Court said this settlement sends "a clear message that protecting customers from scams is a core responsibility of banks."
- The Australian government is currently developing the Scams Prevention Framework to strengthen protections across banks and telecommunications sectors. This landmark case establishes the first global precedent holding a bank accountable for customer scam losses.
Insights by Ground AI
Podcasts & Opinions
22 Articles
22 Articles
Sydney Morning HeraldReposted by 
The Age
The AgeHSBC cops $35m penalty over scam call failings that left a toll on customers
More than 1000 of HSBC’s Australian customers were targeted by the scheme where scammers used text messages and spoofed numbers to convince customers to transfer large sums of cash.
·North Sydney, Australia
Read Full Article
HSBC's Australia unit faces $24.6 million penalty over scam protection failures
·New York, United States
Read Full Article
Father's Day SaleGet 40% off Vantage subscriptions for yourself or a friend.Get Started
Coverage Details
Total News Sources22
Leaning Left3Leaning Right4Center3Last UpdatedBias Distribution40% Right
Bias Distribution
- 40% of the sources lean Right
40% Right
L 30%
C 30%
R 40%
Factuality
To view factuality data please Upgrade to Premium
