Wirecard: The Downfall of a German Fintech Star

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 companies 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 new head of Compliance, 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.