SECURITY firm Chubb could lose its operating licence in Australia after confessing to a TORT according to newspaper reports say New Zealand Security Officers Association.

The Sydney Morning Herald reports the Tort had the firm signing customers for services it could not provide.

Chubb pleaded guilty to 26 criminal charges in the Federal Court last month after an ACCC investigation into its mobile patrol services, the paper said.

Chubb sacked senior officers following the charges and has undertaken what it says is cultural and organisational reform.

Under the Federal Court action, Chubb faces penalties of up to $5 million

Loss of its operating licence would put at risk 11,000 jobs and thousands of contracts.

The court will deliver a ruling in the next few weeks.