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  • March 2021 (Revised April 2021)
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Wirecard: The Downfall of a German Fintech Star

By: Jonas Heese, Charles C.Y. Wang and Tonia Labruyere
  • Format:Print
  • | Language:English
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Abstract

Wirecard was a German fintech company, member of the DAX30, that provided payment processing and related services. Wirecard had enjoyed large growth rates over the years and most investors and analysts were enthusiastic about the company's prospects. Wirecard's business model was not easy to understand for outsiders, and the company's financials often lacked the necessary details to fully comprehend the company's dealings. Throughout the years, Wirecard had been subject to allegations of fraud, including money-laundering allegations and accounting-fraud allegations, among others. However, up until spring 2020, Wirecard was able to reject these claims. In June 2020, investors and the public learn the truth about Germany's digital darling: a major part of Wirecard's business was fraudulent, and a sum of €1.9 billion, supposedly held in trust accounts in the Philippines, is non-existent. James Freis, who had just been hired as a new member of the Management Board, finds himself interim CEO and is trying to understand how this seemingly massive fraud could have gone undetected for so long, and why it began in the first place.

Keywords

Accounting Fraud; Scandal; Accounting Audits; Accounting; Financial Reporting; Financial Institutions; Financial Markets; Corporate Governance; Governance Compliance; Corporate Accountability; Governance Controls; Financial Services Industry; Germany; Singapore; Dubai

Citation

Heese, Jonas, Charles C.Y. Wang, and Tonia Labruyere. "Wirecard: The Downfall of a German Fintech Star." Harvard Business School Case 121-058, March 2021. (Revised April 2021.)
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About The Authors

Jonas Heese

Accounting and Management
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Charles C.Y. Wang

Accounting and Management
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Related Work

    • August 2021
    • Faculty Research

    Wirecard: The Downfall of a German Fintech Star

    By: Jonas Heese
    • March 2021 (Revised April 2021)
    • Faculty Research

    Wirecard: The Downfall of a German Fintech Star

    By: Jonas Heese, Charles C.Y. Wang and Tonia Labruyere
    • July 2021
    • Faculty Research

    Wirecard: The Downfall of a German Fintech Star Student Spreadsheet Supplement

    By: Jonas Heese and Charles CY Wang
    • July 2021
    • Faculty Research

    Wirecard: The Downfall of a German Fintech Star Instructor Spreadsheet Supplement

    By: Jonas Heese and Charles CY Wang
    • July 2021
    • Faculty Research

    Wirecard: The Downfall of a German Fintech Star

    By: Jonas Heese and Charles C.Y. Wang
Related Work
  • Wirecard: The Downfall of a German Fintech Star By: Jonas Heese
  • Wirecard: The Downfall of a German Fintech Star By: Jonas Heese, Charles C.Y. Wang and Tonia Labruyere
  • Wirecard: The Downfall of a German Fintech Star Student Spreadsheet Supplement By: Jonas Heese and Charles CY Wang
  • Wirecard: The Downfall of a German Fintech Star Instructor Spreadsheet Supplement By: Jonas Heese and Charles CY Wang
  • Wirecard: The Downfall of a German Fintech Star By: Jonas Heese and Charles C.Y. Wang
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