German payment processing and IT company, Wirecard, listed on the Xetra via a reverse takeover in 2005. The head of a German shareholder association first raised concerns over possible balance sheet irregularities in 2008 but a subsequent special audit by Ernst & Young (EY) cleared the company (the following year EY was made group auditor). Seven years later, in April 2015, the Financial Times published a series of articles which raised concerns about financial inconsistencies. In November that same year, short-seller J Capital reported that it found very little evidence of any business volume in Wirecard’s Asian operations. In February 2016, Zatarra Research & Investigations raised concerns over money laundering. In January 2018, the Foundation for Financial Journalism published an article which raised concerns over the €340m acquisition of an Indian payment company which was only valued at €46m shortly prior to this. In January 2019, the Financial Times proceeded to publish another series of reports alleging financial wrongdoings by Wirecard in Asia. In October 2019, after a number of other articles and a raid by the Singapore police, KPMG was hired to conduct an investigation. Although Wirecard claimed in March 2020 that the investigation did not produce any substantial findings, in April, KPMG said it could not verify the majority of profits, leading to a share price collapse. In June 2020, Wirecard admitted that €1.9bn of cash probably did not exist, equal to its entire equity base. Wirecard is being wound up and its executives prosecuted although we are still waiting the outcome of a forensic investigation. Wirecard is confirmed fraud.

Last updated February 2022

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