HSBC scam shatters homebuyer's dream in the blink of an eye: ‘Not good enough’
- Replies 9
The journey to homeownership is often paved with years of hard work and sacrifice, a path familiar to many Australians who dream of it.
But for Julie Khoo, a Melbourne woman with aspirations like so many of us, that dream was cruelly snatched away in minutes due to a sophisticated banking scam.
In late October, while at work, Julie received a phone call that seemed like any other. The voice on the other end claimed to be from HSBC's fraud team, alerting her to suspicious activity on her account.
Armed with personal details that lent credibility to their claim, the caller convinced Julie to provide passcodes to 'stop the scammer in their tracks.' Within minutes, $50,000 vanished from her account.
This devastating loss came at a time when Julie was already coping with the grief of losing her father just three months prior.
The caller had personal information that only a bank would possess and took the time to build a rapport with Julie.
They then asked for passcodes, claiming it would halt a scam in progress. She was informed that the fraud was ‘happening right now’ and that she needed to act quickly.
Julie recounted it ‘all happened so fast, but she ‘snapped out of it’ when she realised something was wrong, especially when the caller requested her credit card details.
Shortly after, she contacted her bank, hopeful that the institution she had been with for more than 10 years would be able to block the transfers and guide her on her next steps.
‘I knew that the money had left my account, but I didn’t know it was gone. I truly believed that they (the bank) could claw back the funds,’ she said.
‘They told me they would look into it, to go into the branch the next day (it was already 4 pm), and to report to the police.’
Six months later, she stated that the bank had only emailed her twice. This means the wait for answers and the return of her money continues.
The funds represented not just money but years of diligent saving and the hope of a new home—a dream she had nurtured since migrating from Malaysia in 2017 for a better life.
‘I screen all my calls now—my confidence is shattered,’ she said.
‘I couldn’t look at myself. I was embarrassed and ashamed at what had happened.’
‘I’m just trying to get by. The $50,000 was part of my savings towards my new home. Now I have to start again.’
Julie's ordeal is far from isolated.
Approximately 70 ‘angry and disappointed’ HSBC customers have banded together on social media to share their experiences and seek justice after collectively losing millions to similar scams.
The group also challenged HSBC to recover their stolen money in February and wrote a joint letter to HSBC Australia's CEO, Antony Shaw, and Group Chief, Noel Quinn.
These scams often involve 'spoofing', where fraudulent calls and texts mimic legitimate bank communications, tricking customers into believing they are in safe hands.
Just like in the case of Gerald Chin, who lost his $50,000 savings from an innocuous text from HSBC, which was supposed to be spent on a surprise overseas holiday for her parents.
The Australian Competition and Consumer Commission (ACCC) reported scam losses of $2.74 billion in 2023.
In response to the growing crisis, Kooyong MP Monique Ryan has called for government action, advocating for a mandatory reimbursement scheme to protect ‘blameless scam victims’ and measures to prevent scammers from impersonating legitimate business numbers.
‘The Australian Communication and Media Authority (ACMA) is implementing a voluntary SMS sender ID registry. I feel this registry has to be mandatory for organisations that use SMS sender IDs,’ she said.
It was reported that some HSBC customers who lost up to $50,000 have only recovered between $1 and $100. On the other hand, Goodwill payment offers have ranged between $100 and $5,000.
Julie said a reimbursement scheme would protect customers and encourage banks to improve security.
‘In our cases, HSBC would more than likely have implemented processing delays on new payees sooner,’ she said.
‘Mandatory reimbursements would be a catalyst for banks to act, to protect customers because they are motivated to do so.’
‘People will say consumers need to be on the ball, but it should not rest entirely on the shoulders of consumers.’
HSBC has taken steps to bolster its defences, including expanding its scam and fraud team with 70 additional staff, working with telcos to combat spoofing, and implementing new alert systems for transactions.
‘We understand being a victim of a scam is a stressful and distressing situation, and we remain focused on doing everything we can to protect our customers,’ HSBC Australia’s Head of Wealth and Personal Banking Jessica Power said.
‘We are working on thoroughly investigating each case of fraud while simultaneously trying to recover the stolen funds.’
‘We have continuously invested in our fraud and scam prevention, detection, and response, including implementing new processes to address the issue.’
However, Julie said HSBC has been ‘falling behind what’s deemed as best practice’ for too long.
‘Scammers targeted HSBC customers for a year because they could get away with it, and it’s HSBC’s inaction that allowed it to continue,’ she said.
‘This is not good enough.’
Have you or someone you know been affected by a similar scam? Let us know in the comments below.
But for Julie Khoo, a Melbourne woman with aspirations like so many of us, that dream was cruelly snatched away in minutes due to a sophisticated banking scam.
In late October, while at work, Julie received a phone call that seemed like any other. The voice on the other end claimed to be from HSBC's fraud team, alerting her to suspicious activity on her account.
Armed with personal details that lent credibility to their claim, the caller convinced Julie to provide passcodes to 'stop the scammer in their tracks.' Within minutes, $50,000 vanished from her account.
Julie’s homeownership dreams vanished when she got scammed. Credit: Shutterstock
This devastating loss came at a time when Julie was already coping with the grief of losing her father just three months prior.
The caller had personal information that only a bank would possess and took the time to build a rapport with Julie.
They then asked for passcodes, claiming it would halt a scam in progress. She was informed that the fraud was ‘happening right now’ and that she needed to act quickly.
Julie recounted it ‘all happened so fast, but she ‘snapped out of it’ when she realised something was wrong, especially when the caller requested her credit card details.
Shortly after, she contacted her bank, hopeful that the institution she had been with for more than 10 years would be able to block the transfers and guide her on her next steps.
‘I knew that the money had left my account, but I didn’t know it was gone. I truly believed that they (the bank) could claw back the funds,’ she said.
‘They told me they would look into it, to go into the branch the next day (it was already 4 pm), and to report to the police.’
Six months later, she stated that the bank had only emailed her twice. This means the wait for answers and the return of her money continues.
The funds represented not just money but years of diligent saving and the hope of a new home—a dream she had nurtured since migrating from Malaysia in 2017 for a better life.
‘I screen all my calls now—my confidence is shattered,’ she said.
‘I couldn’t look at myself. I was embarrassed and ashamed at what had happened.’
‘I’m just trying to get by. The $50,000 was part of my savings towards my new home. Now I have to start again.’
Julie's ordeal is far from isolated.
Approximately 70 ‘angry and disappointed’ HSBC customers have banded together on social media to share their experiences and seek justice after collectively losing millions to similar scams.
The group also challenged HSBC to recover their stolen money in February and wrote a joint letter to HSBC Australia's CEO, Antony Shaw, and Group Chief, Noel Quinn.
These scams often involve 'spoofing', where fraudulent calls and texts mimic legitimate bank communications, tricking customers into believing they are in safe hands.
Just like in the case of Gerald Chin, who lost his $50,000 savings from an innocuous text from HSBC, which was supposed to be spent on a surprise overseas holiday for her parents.
Julie’s confidence was ‘shattered’ as she tried to save up for $50,000 again. Credit: Shutterstock
The Australian Competition and Consumer Commission (ACCC) reported scam losses of $2.74 billion in 2023.
In response to the growing crisis, Kooyong MP Monique Ryan has called for government action, advocating for a mandatory reimbursement scheme to protect ‘blameless scam victims’ and measures to prevent scammers from impersonating legitimate business numbers.
‘The Australian Communication and Media Authority (ACMA) is implementing a voluntary SMS sender ID registry. I feel this registry has to be mandatory for organisations that use SMS sender IDs,’ she said.
It was reported that some HSBC customers who lost up to $50,000 have only recovered between $1 and $100. On the other hand, Goodwill payment offers have ranged between $100 and $5,000.
Julie said a reimbursement scheme would protect customers and encourage banks to improve security.
‘In our cases, HSBC would more than likely have implemented processing delays on new payees sooner,’ she said.
‘Mandatory reimbursements would be a catalyst for banks to act, to protect customers because they are motivated to do so.’
‘People will say consumers need to be on the ball, but it should not rest entirely on the shoulders of consumers.’
HSBC has taken steps to bolster its defences, including expanding its scam and fraud team with 70 additional staff, working with telcos to combat spoofing, and implementing new alert systems for transactions.
‘We understand being a victim of a scam is a stressful and distressing situation, and we remain focused on doing everything we can to protect our customers,’ HSBC Australia’s Head of Wealth and Personal Banking Jessica Power said.
‘We are working on thoroughly investigating each case of fraud while simultaneously trying to recover the stolen funds.’
‘We have continuously invested in our fraud and scam prevention, detection, and response, including implementing new processes to address the issue.’
However, Julie said HSBC has been ‘falling behind what’s deemed as best practice’ for too long.
‘Scammers targeted HSBC customers for a year because they could get away with it, and it’s HSBC’s inaction that allowed it to continue,’ she said.
‘This is not good enough.’
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