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HSBC Australia fined $35 million for scam protection failings

Finextra • June 18, 2026

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.

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HSBC Faces $35 Million Penalty for Scam Protection Failures HSBC Bank Australia has admitted to significant failures in protecting customers from scams, leading to a proposed $35 million penalty. The Australian Securities and Investments Commission (ASIC) is pursuing this penalty in the Federal Court, marking one of the first cases of its kind globally. Between January 2020 and August 2024, HSBC received over 1,000 reports of unauthorized transactions totaling $34.6 million. Customers reported losing tens of thousands of dollars, including life savings, and faced delays in accessing their funds. HSBC has initiated a remediation program, compensating affected customers with approximately $21.5 million paid out so far. The case highlights the bank's responsibility to ensure customer protection against scams. The court proceedings are ongoing as of June 18, 2026. 3 sources 53

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HSBC Bank Australia