On 18 June 2026 the Federal Court of Australia ordered HSBC Bank Australia to pay a A$35 million penalty following action by the Australian Securities and Investments Commission (ASIC).
HSBC admitted it took an average of 144 days to investigate scam reports, did not apply the ePayments Code’s rules on whether the customer or the bank should bear scam losses, and had not put scam controls on the internal payment channel where most customer losses occurred. The Court found the ePayments Code failures were widespread and systemic.
HSBC had paid about A$21.5 million in compensation, with more due, and had recovered and returned A$6.5 million to customers. It was ordered to publicise the findings to customers. ABC News reported that Justice Bennett accepted the agreed penalty but considered it somewhat on the lower side.
HSBC’s position
HSBC admitted the failures and put in place a compensation plan.
The evidence
3 sources- Exhibit A26-127MR Federal Court orders $35 million penalty against HSBC for scam protection failuresAustralian Securities and Investments Commission · 18 June 2026 · asic.gov.auOfficial record
- Exhibit B26-126MR $35 million penalty sought as HSBC admits to scam protection failuresAustralian Securities and Investments Commission · June 2026 · asic.gov.auOfficial record
- Exhibit CHSBC agrees to pay $35 million penalty after widespread scam failuresABC News (Australia) · 18 June 2026 · abc.net.au
Last checked 2 November 2026. Something wrong or out of date? Tell us and we’ll correct it.