How long did HSBC Australia take to investigate?

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HSBC Australia Took an Average of 145 Days to Investigate Unauthorised Transactions

HSBC Australia's local affiliate is facing legal action from the Australian Securities and Investments Commission (Asic) for allegedly taking an average of 145 days to investigate matters related to unauthorised payments and transactions. This extended timeframe occurred while the bank received approximately 950 reports from customers who lost close to a million dollars or more in total. The alleged failures in prompt investigation contributed to significant customer losses.
Extended Investigation Period for Customer Reports

Between January 2020 and August 2024, HSBC Australia reportedly received around 950 reports concerning unauthorised payments and transactions. Asic's allegations highlight that the bank's average response time for these matters extended to 145 days. This period represents a significant delay in addressing customer concerns about the security of their funds.
Substantial Customer Financial Losses

These delays in investigation coincided with substantial financial losses for customers, totalling approximately A$23 million (RM65 million) over the specified period. A particularly concerning portion of these losses, amounting to almost A$16 million, occurred within a six-month window from October 2023 to March 2024, indicating a concentrated period of customer impact.
Allegations of Inadequate Controls and Timeliness

Asic claims that HSBC Australia lacked sufficient controls to prevent and detect unauthorised payments. Furthermore, the regulator alleges that the bank was not only slow to investigate customer reports but also failed to reinstate banking services in a timely manner. These alleged systemic failings are central to the legal action initiated by the corporate watchdog.

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