1 / 4

Can Surveillance Tools have Predicted Wirecard’s Demise?

To establish some context, Wirecard AG was a German FinTech darling innovating financial payment and processing along with related services. To know the answer of the question read the blog at https://bit.ly/2KNWkTe

shielfc
Download Presentation

Can Surveillance Tools have Predicted Wirecard’s Demise?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CAN Surveillance Tools HAVE PREDICTED WIRECARD’S DEMISE?

  2. CAN SURVEILLANCE TOOLS HAVE PREDICTED WIRECARD’S DEMISE? That’saquestionthatdeserveslookingintoalittlefurther. First, toestablish somecontext, WirecardAGwasaGermanFinTechdarlinginnovatingfinancial paymentandprocessingalongwithrelatedservices. Thekeywordhereis “was,” asinpast-tenseandnolonger “is.” InSeptember2018, theirvaluation approached €25Billion. Lessthan18monthslater, theylost98% oftheirvalue andarenowdefunct. Butthat’snotthewholestory. AccordingtoBloombergandnumerous reputablemediasources, Wirecardisunderinvestigationforinsidertrading andothernefariousactsoffiscalregulatorynon-compliance. Andit’sunclear howmanyothershaveprofitedbyplacingshortpositionstobetagainstthe stock. OnJune10, 2020, eightdaysbeforeWirecard’sstockcrashed, an anonymoustipsterpostedinanonlineforumthatanEYauditorcouldn’t accountformissingfunds; morespecifically, missingbillions. BoththeGerman mediaoutletHandelsblatt, andBaFin, aGermanregulatorywatchdog, have confirmedthatthenow-deletedpostwaslegitimate. So, thequestionbecomes, couldeCommssurveillancetoolshavepredicted thefallenFinTechgiant’sdemiseandalertedauthoritiesintimetofreezeits assets?

  3. THERE ARE ALWAYS SIGNS Ofcourse, sophisticatedeCommsmonitoringsolutionsarenecessaryto interpretnuance, emojisandthelikefromconversations, butclosescrutinyby watchdogsalsoprovestobeeffective. Inessence, that’swhatCompliance Officersdo. However, atleastinthecaseofWirecard, asavvyblogger (memyselfandi007) hasbeenhotonthetailofthefraudsters – backsince2008 whenthecompanylaunched. PostsbythisbloggerregardingWirecardhave beenviewedmorethan18milliontimes. Here’swhereitgetsreallyinteresting. Theblogger’spostshavebeenheavily redactedand, insomecases, removed; notbytheblogger, butbyWirecard. ThefallenFinTechalsofilednumerouslawsuitsagainstthisbloggerinthe yearsleadinguptothecurrentdebacle. DidBaFin, theEBA, SECandother regulatoryagenciesmissthis – ordismissit? THE AFTERMATH OF ALLEGED MARKET ABUSE MarcusBraun, formerCEO, resignedin shameandhasstatedthatheandWirecard arevictimsoffraud. JanMarsalek, aformer BoardmemberofWirecard, hasfled Germany, likelywithhissolidgoldcredit cardforwhichhewasrenowned. Hewas spottedinthePhilippinesandthenin China. DeutscheBankisdownsizing18,000jobs withinthenexttwoyearsaspartofitscost- cuttingturnaroundplan. What’srelevanthereisthattheyarelookingtoaugmenttheirtechnology stackwithnewsolutions. AccordingtoReuters, theyarecurrentlyeyeingthe acquisitionofWirecard’spaymentprocessingtechnology. Butafewdetails needtobesortedoutfirst.

  4. HOW DID WIRECARD ‘COOK THE BOOKS?’ Thesuspectedschemeisn’tveryelegant, buteffectivenessandelegancearen’t alwayslinearlyequated. A33-yearoldIndonesianaccountantoperatedafirm inSingaporeandhadnotableclientslikeWirecard. Hemanagedonlya handfulofemployeesbut, accordingtotestimonythathassinceemerged, he artfullytaughtthemhowto “cookthebooks.” Thepracticeiscalled “round- tripping” whichinvolvesmovingalumpsumofcashfromtheGermanbank ownedbyWirecardtoadormantsubsidiaryinHongKong. Themoneysits therejustlongenoughtoberecordedasa “customertransaction.” Onthe books, thetransactiongetsrecordedasrevenue. Momentslater, themoney wouldtraveltoWirecard’sofficeinIndia. So, we’llaskthequestiononelasttime, couldeCommsmonitoring softwarehavedetectedthemarketabusewithinWirecardand predicteditsdemise? The “papertrail” thatincludesemails, calls andchatswillprobablybeunveiledintheinvestigationprocess, butthewayIseeit, itissafetosaythattheanswerwillbeYES. SOURCE: HTTPS://WWW.SHIELDFC.COM/

More Related