I once had a significant sum of money fraudulently taken from my HSBC bank account due to a card copying device in a Thailand ATM. Yes I did get the money back from HSBC eventually, but I had to go to the police station multiple times to file an official police report, fill in a number of forms, etc. And it took months to process.
I'm not saying your situation is the same but simply that HSBC will not necessarily make things easy for you. The hassle that results from cancelling a card is probably less than your other options.
Physical offers a free six months membership if you can show a valid california or myoga membership.