ASIC sues HSBC Bank for failure to protect customers from scams
The Australian Securities and Investment Commission (ASIC) has taken strong enforcement action, announcing today that it is suing HSBC Bank for its ‘widespread failures to act honestly, efficiently and fairly’ and protect hundreds of its customers from scams.
Consumer Action CEO Stephanie Tonkin said she was delighted by the news of ASIC’s action as it sends a ‘clear and important signal’ to all banks about how they should deal with their customers who have been the target of sophisticated scams.
“Last year, the ACCC reported that Australians lost a mind-boggling $2.74 billion to scams and as banks only compensate a paltry 5% of their losses, it is everyday bank customers who are footing this devastating bill,” Ms Tonkin said.
The ASIC action reaffirms why the Government’s Scams Bill -going through Parliament now- is so important to get right, and why it needs to put fast and simple redress for victims front and centre.
“The message this ASIC action underscores is that we need clear, effective laws in place to force banks to do the right thing for their customers and to invest in really effective anti-scam technologies,” she said.
Ms Tonkin said Consumer Action strongly supports ASIC calling out HSBC for its egregious behaviour and urges the regulator to investigate and point out the infractions of other banks.
“The stories we heard from the HSBC victims who contacted us were heartbreaking, they were shamed by their bank and denied support when they reached out for help.
“Many lost life-changing amounts and then had to take on an adversarial HSBC which fought them tooth and nail. The cases were strikingly similar, HSBC was on notice of the scam and should have stopped the losses far sooner.”
Read ASIC’s media release
Media contact:
Mark Pearce, Consumer Action Law Centre, mark@consumeraction.org.au TEL: 0413 299 567
