HSBC has joined the long list of financial institutions under investigation for possible fraudulent banking practices, including unauthorized bank accounts, improper charges, and unauthorized insurance enrollments.

In the wake of the Wells Fargo fake account scandal first reported in 2016, numerous other banks have come under scrutiny for possible unauthorized bank accounts. The Office of the Comptroller of the Currency (OCC) concluded a federal investigation in 2018 into 40 other financial institutions’ banking practices.

Although Joseph Otting, the Comptroller of the Currency, has declined to reveal which banks were included in the investigation, the OCC has confirmed that 20,000 accounts at multiple banks may have been opened fraudulently and without customer knowledge or consent.

According to the L.A. Times, Otting has received pushback from Democratic lawmakers over his refusal to name the banks implicated in the OCC investigation. Ohio Representative Sherrod Brown said, “The public deserves more information on the prevalence of fake account abuses and other sales misconduct at the big banks the OCC reviewed,” while New York representative Carolyn Maloney called the OCC’s lack of public enforcement actions against the banks “deeply disturbing.”

Why Were Unauthorized Bank Accounts Opened?

Aggressive sales goals may have lead employees at the banks under investigation to open the unauthorized bank accounts. The OCC has stated that some banks gave credit to employees for opening new accounts, even if they were never activated or used by the customer, or were funded with money that was transferred from an existing account. The OCC has also noted that after their investigation, these banks have changed their procedures regarding new account openings, and are now contacting customers to ensure they know when a new account has been opened in their name.

Unauthorized Bank Account Investigations

In late December 2018, it was announced by the Attorney General Josh Shapiro that Wells Fargo, the 2nd largest bank in the world and the most notorious bank under investigation for unauthorized bank accounts, would pay $575 million to resolve the claims against them. In this case, as many as 3.5 million accounts may have been opened without customer knowledge or consent. HSBC, headquartered in London, is the 7th largest bank in the world. Its total assets are worth $2.374 trillion. Although the OCC has not named any banks that were included in their investigation, they have stated that their focus was on financial institutions with assets of $10 billion or more. In addition to the OCC’s federal investigation, attorney investigations have been launched into HSBC and other financial institutions.

Signs that an Unauthorized Bank Account May Have Been Opened in Your Name

Signs of fraudulent bank accounts may include unexpected overdraft fees, unexpected account fees, interest charges on credit cards you didn’t open, changes to your credit report, or bank statements you don’t recognize. Banking customers who are concerned that they may be the victim of fraudulent banking practices can take precautionary steps such as checking their credit report for unauthorized cards or calling their bank to request a list of every account in their name. If you are a customer with HSBC or another financial institution under scrutiny for unauthorized bank accounts and believe that you may have been a victim of unauthorized banking practices, you may qualify to join a free fake bank account investigation.