The Wirecard scandal is a series of accounting scandals that resulted in the insolvency of Wirecard, a German payment processor and financial services provider that was part of the DAX index. Wirecard AG is a payment processor headquartered in Munich, Germany.

What is the problem with Wirecard?

Wirecard filed for insolvency on June 25^th 2020. The act is the culmination of a long fraud and a failure of regulatory mechanisms to uphold financial ethics. The fraud came to light when Wirecard was unable to justify €1.9 billion in its accounts.

What caused Wirecard scandal?

Accounting irregularities

Wirecard's combined banking (through its subsidiary Wirecard Bank) and non-banking operations (mainly payment processing) makes its financial results harder to compare with peers, so the investors had to rely on adjusted version of the financial statements of the company.

What did Wirecard do?

Wirecard was an international supplier of electronic payment and risk management services. Wirecard offered products and services in the areas of mobile payments, e-commerce, digitisation and finance technology.

What can we learn from the Wirecard scandal?

In short: The fraud triangle can be used to explain factors that could cause someone to commit fraud. This framework can be used to explain how after an audit was carried out, Wirecard was found to have €1.9 Billion missing from their bank accounts.

What happened to Wirecard? | CNBC Explains

How did Wirecard get caught?

The former chief executive of Wirecard was arrested Wednesday on new charges after prosecutors in Munich said they had uncovered evidence that the insolvent payments company had used false accounting to defraud creditors of $3.7 billion.

What happened to Wirecard Singapore?

News of Wirecard selling its business operations in Asia comes after the beleaguered German payments company collapsed into insolvency in June 2020. ... A separate article by the Financial Times (FT) on Friday reported that Nomu Pay was also set to buy Wirecard's regional data warehouse in Singapore.

Is Wirecard Singapore still operating?

The Monetary Authority of Singapore (MAS) announced today that it has directed Wirecard entities in Singapore (Wirecard SG) to cease their payment services in Singapore and to return all customers' funds by 14 October 2020. ... Customers who have not yet made alternative arrangements are encouraged to do so promptly.

Who use Wirecard in Singapore?

Wirecard's clients in Singapore include taxi giant ComfortDelGro, which in 2008 outsourced the development of the cashless payment system for its taxis to the German firm. "We are aware of the directive by the MAS with regards to Wirecard services.

Is Wirecard a credit card?

Credit Card. As a payment service provider and bank, Wirecard offers payment processing and card acceptance as a complete solution from a single source. ... It meets all the requirements stipulated for a card organization, including PCI DSS compliance.

Is Wirecard dead?

The Philippines confirmed a former Asian executive of disgraced German payments firm Wirecard AG, who is part of an ongoing investigation, has died.

Is Wirecard still in business?

Wirecard AG's bankruptcy administrator has sold the failed German fintech's U.S. operations to a company backed by buyout specialist Centerbridge Partners LP, as it continues to dismantle the remains of the business and earn some cash for creditors.

Is Wirecard a good stock to buy?

WIRECARD AG is a potential penny stock. Although WIRECARD may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype.

Why do internal control systems break down?

Breakdowns: Even well designed internal controls can break down. Employees sometimes misunderstand instructions or simply make mistakes. Errors may also result from new technology and the complexity of computerized information systems. ... Collusion: Control systems can be circumvented by employee collusion.

How many employees does Wirecard have?

Wirecard has 5,800 employees and is ranked 9th among it's top 10 competitors.

Can you transfer money from a Wirecard to bank account?

Wirecard offers different online bank transfer options on a single platform, which only has to be integrated into your payment page once, a process which is very easy to complete.

How does a Wirecard affect Singapore?

Wirecard has been instructed to stop offering its payment services and return all customers' funds in Singapore. ... The service cessation would affect credit card payments at local merchants that used Wirecard's services and the use of pre-paid cards issued by Wirecard.

Who are Wirecard competitors?

There are a number of strong direct competitors that could fill the vacuum left by Wirecard including WorldPay, PayPal, Adyen, Strip, Square and AsiaPay.

What is Wirecard Card?

As a payment service provider and bank, Wirecard offers payment processing and card acceptance as a complete solution from a single source, and also separately of course. ... Wirecard guarantees maximum availability around the clock, every day of the year.

Is Citibank Singapore closing down?

SINGAPORE - Citibank Singapore is closing its CitiBusiness arm, which serves small and medium-sized enterprises (SMEs). About 2,000 customers have been told that their deposit accounts will be closed with effect from Aug 11 and advised to transfer their balances before then.

Who is wirecard auditor?

EY Auditors Told by German Court to Testify About Wirecard

EY audited Wirecard's books until its collapse last year and has come under fire for a failure to spot that 1.9 billion euros ($2.3 billion) were missing from the payment company's accounts.

What did EY do wrong Wirecard?

EY audited Wirecard for over a decade, and failed to request crucial account information from a Singapore bank where the German group claimed it held up to €1 billion in cash. That move may have helped uncover its huge accounting scandal, the FT said.

What do auditors do?

Auditors are specialists who review the accounts of companies and organisations to ensure the validity and legality of their financial records. They can also act in an advisory role to recommend possible risk aversion measures and cost savings that could be made.