WIRECARD

SCAM
Introduction to Wirecard...
» Wirecard was found in 1999
» Wirecard is a payment processor that
facilitates Debit and credit card transactions.
» It's payment systems collect money from
the consumer's bank that issues the card and
then delivers that money to the merchant so
that it arrives in their account.
» Wirecard makes money by taking a
percentage of every transaction they process.

CASHLESS
SOCIETY
International expansion...

• Wirecard Asia Pacific was founded in Singapore in 2007.

• In 2008, Wirecard introduced virtual prepaid credit cards for
online payments, in the following year a fraud prevention suite for
fraud detection.
• In 2014, Wirecard expanded to New Zealand, Australia, South
Africa and Turkey
• With the purchase of Prepaid Card Services from Citigroup,
Wirecard has also been represented in USA since 201I
• In the same year, the company acquired a South American Internet
payment service provider in Brazil.
• In 2019, SoftBank invested in Wirecard. With the acquisition of All
Score Payment Services from Beijing, Wirecard has also been
represented in Chína since November 2019.
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Products and services...

Mobile Digitalization of
Card issuing
payments retail sector

International Alternative Chinese

Ecommerce
supplier payment methods

February 28, 2022 4

TIMELINE & SCANDAL...

1999 2006
Wirecard was founded. Purchased xcom
Markus Braun - The CEO Unusual hybrid operations
made harder to compare.

2005 2008
A little known startup , WC First allegation on accounting
joined frankfurt stock irregularities.
exchange. WC appointed EY for special
audit.

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 2010 2015
Firm changed English as their FT publishes "House of
official language for Wirecard" series mentioning
international expansion. inconsistencies of accounts.
Moreover it stated€ 250 m
hole.
Largest takeover in India €
340 m deal.

2011 - 2014 2016

Share price € 100 J capital research & zattara
Asian operations. research - WC's operations
Investors are drawn because were of smaller than it claims.
of their rapid development. Escrow accounts were under
scrutiny.

February 28, 2022 Footer Message 6

 2017 2018
With the purchase of WC replaced commerzbank
Citigroup, WC entered North in the prestigious Fax index.
American Market. Europe's largest FinTech
After clean audit report by EY,
share price doubled.
Markus Braun borrowed
$150 m Deutsche Bank.

2018 2019
Shares hit a peak of €191, After SG investigation, FT
valuing the company $ 28 published a story on irregular
billion. accounts.
SG investigation on round Bafin investigates FT on
tripping to India. allegations.
WC sues FT for false
informations.
February 28, 2022 Footer Message 7
 2019 Feb 2019 April
Bafin bans two month short Wirecard announces a
selling, as the share price fell , €900m injection of cash from
citing WC's" importance for SoftBank.
economy and serious threat FT publishes further details of
to market confidence". Wirecard’s outsourced
payments processing.
Mr Braun rubbishes the
figures in a press conference,
calling them inaccurate.

2019 March 2019 April

Wirecard sues the Singapore FT publishes relationship with
authorities, challenging the its partners profit.
criminal investigation. The FT is served with court
documents. Wirecard is suing
for “misuse of trade secrets”,
in relation to January and
February’s articles
February 28, 2022 Footer Message 8
2019... • The company then reported on 18
• In 2019, the accounting firm KPMG was June 2020 that €1.9 billion was
hired by Wirecard for an independent audit missing in cash from the company's
to address the mentioned allegations. In accounts following an audit by Ernst
March 2020, Wirecard claimed that KPMG
concluded that no discrepancy was & Young.
determined during the audit. • Braun resigned as CEO the
• However, on 28 April 2020, Wirecard following day to be replaced by
shares tumbled 26% when the auditor James Freis. Over the two days, the
announced that it had not received company's stock fell 72%.
sufficient documentation to address all
allegations of accounting irregularities. • On 22 June 2020, Braun was
Later on 5 June, Wirecard's headquarters arrested by German police under
were searched by police as part of a accusations of "inflating Wirecard
criminal investigation into potentially AG's sales volume with fake
misleading statements to investors by
CEO Markus Braun and three other board income".
members regarding the audit. • On 11 September 2020, Freis
announced in an email that he had
stepped down from the CEO position
after 85 days, with immediate effect.
February 28, 2022
Questions.?

Reason for success.?

Financial Regulators.?
Learn.?
Reason for success.? Financial Regulators.?
(Bafin)

Homegrown tech champ need to be

Marketed itself as leader in protected.
payment processor system.
And, claimed it used a superior Attack on it affront to Germany &
technology. finance sector.
Want to capitalise the trend
towards cashless society. Allegations aroused out of Germany,so
denied.
Regulatory system not equipped.
Not a "bank"
Silenced critics.

February 28, 2022 11

Learnt.?

Europeans level to Monitor

complaints and protect
investors have to be
implemented. THANK YOU!

February 28, 2022 12

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