Abstract
At Wirecard in Germany, speculations in the media about financial mismanagement were so strong and loud that the company attempted to obtain a clean bill of health from fraud examiners at KPMG. Among the accusations that violated the social license to operate were allegations that Wirecard management recorded higher revenues through fictitious customer relationships, suspicious loan relationships through what is called merchant cash advance, over-reporting of profits in the Singapore branch and in the United Arab Emirates, and a suspicious transaction by a company in India. There was no way of regaining the social license in this case of Wirecard in Germany as the financial institution collapsed shortly after the fraud investigation was completed. The financial institution went bankrupt. Wirecard shareholders had to pay the price for the fraud scandal. The Wirecard scandal was a series of accounting frauds that resulted in the insolvency of the German payment processor and financial services provider.
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Gottschalk, P. (2022). Banking Mismanagement. In: Financial Crime Issues. Springer, Cham. https://doi.org/10.1007/978-3-031-11213-3_9
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