HSBC Australia fined $35 million for scam protection failings

## /security News and resources on cyber and physical threats to banks and fintechs worldwide. #### Editorial This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. # HSBC Australia fined $35 million for scam protection failings HSBC Bank Australia is facing a $35 million fine and million of dollars in remeditation payouts after admitting to serious failures in protecting customers from scams that cost some tens of thousands of dollars, including their life savings. 3 Likes018 June 2026 [Be the first to comment](https://www.finextra.com/newsarticle/47951/hsbc-australia-fined-35-million-for-scam-protection-failings#comments)  #### Editorial This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. In one of the first cases of its kind globally, the Australian and Securities and Investments Commission (Asic) and HSBC will ask the Federal Court to find HSBC contravened the law and impose a penalty of $35 million. Following ASIC’s investigation, HSBC has also established a large-scale remediation program. To date, HSBC has paid around $21.5 million in compensation, with further payments to come. HSBC has also recovered $6.5 million and returned those funds to customers. Between January 2020 and August 2024, HSBC received more than 1,000 reports of unauthorised transactions with a total transaction value of $34.6 million. Reports of fraudulent transactions to HSBC surged approximately 380% in 2023 and 2024, largely driven by impersonation scams HSBC has admitted that for over a year it failed to have adequate controls on its internal transfer system and the means to inform customers how to regain access to their accounts that were locked after they had reported a scam. The bank was also found to have breached its financial services licence obligations due to major delays in investigating cases, which took an average of 144 days to finalise. ASIC Chair Sarah Court says: "This is one of the first cases of its kind globally and sends a clear message that protecting customers from scams is a core responsibility of banks. "HSBC’s alleged failures left customers more vulnerable to scams, tens of millions of dollars out of pocket and waiting months to find out what had happened to their money." [Sponsored\\ \[Webinar\] From Copilot to Autopilot: Exploring Agentic AI's Impact on Treasury](https://www.finextra.com/banners/banner.aspx?opt=ad&baid=8099) 3 Likes ## Share ### Related Company [HSBC](https://www.finextra.com/company-news/2476/hsbc) [Australian Securities and Investments Commission](https://www.finextra.com/company-news/1692/australian-securities-and-investments-commission) ### Channels [/retail banking](https://www.finextra.com/channel/retail) [/security](https://www.finextra.com/channel/security) ## Comments: (0) [Sign in to comment](https://www.finextra.com/community/login.aspx?returnurl=%2fnewsarticle%2f47951%2fhsbc-australia-fined-35-million-for-scam-protection-failings) #### Editorial This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.  Watch our market data ##### 4,000 data feeds \| 75 data providers. [Find out more](https://bit.ly/4soedrm)  Explore our Stock Stories ##### 50-page reports in 30 second summaries [Discover Finextra Pro](https://bit.ly/3N5W16R) [![[Webinar] AI, HR and Financial Services: Modernising Banking Systems from Front to Back](https://www.finextra.com/finextra-images/100x30/workday-txt.jpg)Finextra Promoted\[Webinar\] AI, HR and Financial Services: Modernising Banking Systems from Front to Back](https://www.finextra.com/banners/banner.aspx?opt=ad&baid=8106) ### FINX-100 gainers Top 5 FINX-100 gainers **\- 30 days** SEZL59.39PAYO46.25HOOD40.18ZIP29.78SNEX25.46 ### FINX-100 losers Top 5 FINX-100 losers **\- 30 days** INTU-33.77MSTR-32.47BLSH-32.23CRCL-27.97FUTU-26.62 For more market intelligence, data, prices and filings, use [Finextra Pro](https://bit.ly/4rFADEF). Welcome to Finextra. We use cookies to help us to deliver our services. You may change your preferences at our [Cookie Centre](https://www.finextra.com/about/cookie-centre.aspx). Please read our [Privacy Policy](https://www.finextra.com/about/privacy-policy.aspx). [Accept](https://www.finextra.com/newsarticle/47951/hsbc-australia-fined-35-million-for-scam-protection-failings#)