Scam Losses, Regulatory Failures, and Delayed Protections in Australia

Australians lost $2.18 billion to scams in 2025, with investment scams alone costing $837.7 million.

National Scam Losses

The Australian Competition and Consumer Commission (ACCC) reported that Australians lost $2.18 billion to scams in 2025. The five scam types responsible for 60% of total losses are:

In 2023, scam losses reached a record high of $3.1 billion for the preceding year.

Individual Cases

Bevan Lisle (Sydney Retiree)

Bevan Lisle reported a loss of $50,000 due to an investment scam. His stockbroking firm, Burrell Stockbroking, sold his entire share portfolio and paid the proceeds into an unauthorized bank account after receiving emails impersonating Mr. Lisle.

Mr. Lisle stated that the firm changed his bank account details without further verification, which he claims violates ASIC protocols.

Burrell Stockbroking initially indicated they would cover the loss but later reversed that position, leading to a legal dispute. Following media coverage, the firm agreed to repurchase Mr. Lisle's shares and cover his legal fees—these payments have not yet been received.

New South Wales Police are investigating the incident. Burrell Stockbroking stated it has "robust procedures" and attempted to contact Mr. Lisle by phone, though Mr. Lisle asserts these calls occurred only after the shares had been sold. The firm stated an internal audit of its procedures has been commissioned.

"Justin" (Chinese-Born Australian Resident)

A man referred to as Justin lost approximately $140,000 to scammers impersonating Chinese law enforcement in 2025. The scam began with a fraudulent call from someone claiming to be from the Australian Consulate-General's legal department in Hong Kong.

Scammers used spoofed phone numbers, legal-looking documents, and 24-hour video surveillance. Justin transferred funds to an HSBC account over seven days; Westpac later recovered $30,000.

The ACCC reported over $12 million lost to Chinese authority scams in Australia in 2025, with a median loss of $55,000.

Justin reported the scam to police and his bank.

HSBC Bank Australia: Regulatory Action and Failures

Court Proceedings and Penalty

HSBC Bank Australia Limited (HSBC) admitted in the Federal Court to failing to maintain adequate controls on its internal transfer system, increasing the risk of unauthorized payments.

The Australian Securities and Investments Commission (ASIC) and HSBC will jointly ask the Federal Court to impose a penalty of $35 million for contraventions of the law. ASIC commenced civil penalty proceedings against HSBC on 13 December 2024. The matter is to be heard in the Federal Court on 18 June 2026.

Key Admissions and Data

• Between January 2020 and August 2024, HSBC received over 1,000 reports of unauthorised transactions totaling $34.6 million.
• HSBC was aware from May 2021 of the growing risk of impersonation scams.
• Unauthorized transactions increased by 380% in 2023–2024.
• Investigation delays averaged 144 days, breaching financial services license obligations.
• Between 2021 and 2024, customers lost over $100 million to all payment fraud; losses accelerated to nearly $61 million from January to September 2024, including $24 million from impersonation scams.
• HSBC has paid approximately $21.5 million in compensation and recovered $6.5 million returned to customers.

Customer Advocacy

Sunni Wan, a victim who lost nearly $50,000, created a support group. She said the bank "just kept putting the blame on the victims."

The Australian Financial Complaints Authority (AFCA) issued a landmark determination in August 2024 requiring full reimbursement for a scam victim.

Over 400 victims lodged AFCA complaints, receiving $8.67 million in reimbursement. Not all victims have been fully repaid; some received partial compensation after prolonged negotiations and AFCA complaints.

HSBC Statement

"We apologise to our customers. We are pleased to have reached an agreement to resolve the proceedings with ASIC, which recognises our customer redress program and significant enhancements made to our fraud and scam prevention, detection and response."
— HSBC Spokesperson

Telecommunications: Telesign and SMS Scams

The Australian Communications and Media Authority (ACMA) found that Telesign, a global telecommunications company, allowed over 1,000 SMS messages impersonating HSBC to reach Australian customers between January 2020 and August 2024.

The ACMA found Telesign breached the industry scams code by failing to report the fraudulent messages. The ACMA issued a direction to comply with the code but did not issue a fine or enforcement action, as a warning is the strongest available option for a first-time offence.

HSBC customers reported losses exceeding $34 million from the scam.

Telesign expressed regret and said it had strengthened processes.

Government Legislation and Implementation

The Albanese Government passed new laws in February 2025, aiming to hold tech companies, telecommunication providers, and banks accountable for scam losses. These laws introduce potential penalties of up to $50 million and require:

• Social media platforms to verify advertisers
• Banks to confirm payee identities
• Telcos to detect and block scam calls and texts

However, mandatory codes for their implementation have not yet been established.

Consumer advocates, including Stephanie Tonkin, CEO of the Consumer Action Law Centre, have criticized these delays, stating that the reforms are not operational.

Concerns have also been raised regarding the exclusion of sectors such as superannuation, dating platforms, and online marketplaces from the new framework.

The Australian government has announced plans for a Scam Prevention Framework and automatic reimbursement for losses up to $3,000, but these measures are not yet in force. The Australian government has also proposed changes to allow the ACMA to impose fines of up to $10 million without prior warning.

Statements from Regulators and Officials

"The case against HSBC sends a clear message that protecting customers from scams is a core responsibility of banks."
— ASIC Chair Sarah Court

"Scammers use technology and psychology effectively, and the scam has become more sophisticated over time."
— ACCC Deputy Chair Catriona Lowe

• Assistant Treasurer Daniel Mulino has been contacted for comment regarding the timeline for the Scam Prevention Framework's implementation.
• Chinese Embassy Spokesperson confirmed that official warnings about Chinese authority scams have been issued and that such crimes must be severely punished.