Australia's corporate regulator has initiated legal action against the local affiliate of the global bank HSBC , claiming it failed to correctly respond to about 950 reports of customers losing close to a million dollars or more.

Australia’s corporate watchdog is suing the local unit of HSBC Holdings over allegations that the bank failed to protect customers from criminal scams.

Australia’s markets watchdog sued HSBC Bank of Australia Ltd for failing to protect customers who lost millions of dollars in scams.

ASIC alleges the bank lacked proper controls to prevent unauthorised transactions and failed to investigate reports promptly.

HSBC Holdings (NYSE:HSBC)(OTCPK:HBCYF) is facing a lawsuit by the Australian Securities and Investments Commission for allegedly failing to protect its customers from scams.  According to the regulator,

ASIC claims some customers of the international bank lost $90,000 due to scammers, after warning it of suspicious activity on their accounts.

The Australian Securities and Investment Commission claims HSBC's failures led to $23 million lost over four years.

Australia’s markets watchdog sued HSBC Bank of Australia Ltd. for failing to protect customers who lost millions of dollars in scams.

HSBC's Australian unit is being sued by the country's securities watchdog agency for failing to protect local customers from scams, resulting in A$23 million (US$14.65 million) of losses. The Australian Securities and Investment Commission (ASIC) lodged a claim against HSBC Bank Australia in the Australian federal court on Monday in relation to 950 reports totalling A$23 million over a five-year period from January 2020 to August 2024.

HSBC Holdings plc’s HSBC Australia unit, HSBC Bank Australia, has been sued by the Australian Securities and Investments Commission (“ASIC”) for failing to protect its customers from losing millions of dollars in scams.