HSBC Faces Lawsuit in Australia Over Fraud Prevention Failures

Dec 16, 2024

The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against HSBC Holdings' local branch, accusing it of failing to protect customers from fraud. The lawsuit alleges that HSBC Australia did not adequately detect and prevent unauthorized transactions by fraudsters impersonating bank employees between January 2020 and August 2024. During this period, customers reportedly lost around AUD 23 million (approximately USD 14.6 million). ASIC states that HSBC received about 950 reports of unauthorized transactions, taking an average of 145 days to investigate each case. ASIC seeks financial penalties, claiming that HSBC Australia was aware of fraud control weaknesses since at least January 2023. HSBC Australia is reviewing the allegations and has significantly invested in fraud prevention.

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