HSBC Bank of Australia is under scrutiny as Australia's financial watchdog, ASIC, has taken legal action against it.
The bank is alleged to have failed to protect its customers from fraud, leading to millions of dollars in losses.
Between January 2020 and August 2024, customers reported around 950 cases of unauthorised transactions, with a total loss of up to $23 million.
Shockingly, $16 million of the losses occurred in just six months, from October 2023 to March 2024.
ASIC claims HSBC did not have systems in place to stop or detect the fraud.
They also claim the bank failed to act quickly to investigate complaints.
HSBC took around 145 days to review reports, leaving affected customers waiting too long for a response.
In addition, ASIC said the bank did not promptly restore services to victims.
HSBC has pledged to work closely with ASIC and change its approach to combating fraud crimes.
An HSBC spokesperson stressed that customer safety is their top priority in dealing with this fraud issue.
