06:47 AM EST, 12/16/2024 (MT Newswires) -- (Updates with a statement from HSBC ( HSBC ) in the last paragraph.)

HSBC ( HSBC ) is facing a lawsuit from the Australian securities regulator for allegedly failing to provide enough controls to protect customers from getting scammed out of millions of dollars, the regulator said Monday.

HSBC Australia customers lost about AU$23 million ($14.6 million) between January 2020 and August 2024 from unauthorized transactions, the Australian Securities and Investments Commission or ASIC said.

There was a significant increase in reports of fraudulent transactions from mid-2023 and HSBC ( HSBC ) allegedly failed to address gaps in fraud controls despite being aware of the risks, ASIC said.

HSBC ( HSBC ) took an average of almost 5 months to investigate customers' reports of scams, the regulator alleged.

The bank also took an average of 3 months to restore full access to bank accounts after scam incidents, the regulator alleged, citing a case where a customer did not have full access to their account for more than a year.

"We are considering the matters raised and will continue to co-operate and work constructively with ASIC," HSBC ( HSBC ) said in an emailed statement to MT Newswires. "We continue to make significant investments in our fraud and scam prevention, detection, and response."