Wirecard might still be one of Europe’s most feted tech firms, were it not for a small band of sceptics—including Dan McCrum, an investigative journalist
Save time by listening to our audio articles as you multitaskWirecard might still be one of Europe’s most feted tech firms, were it not for a small band of sceptics—including Dan McCrum. The investigative journalist at the first heard about the company in 2013, jotting down its name with a question mark after a hedge-fund manager suggested he look under the bonnet.
The company also made full use of Britain’s strict libel law, hiring Schillings and other firms to pound thewith legal threats. Lawyers from another practice, alleges Mr McCrum, “played the part of the waiter carrying the tray, taking no view on whether its client had poisoned the drinks”. Wirecard also sued in its homeland, spuriously accusing the paper of misusing its business secrets; the suit was dropped.
Wirecard’s critics also had to contend with its boosters in markets and the media. Many investors, caught up in the general tech optimism, refused to believe Wirecard could be rotten, even as the incriminating evidence mounted. Such frauds are common in China, but in orderly Germany? The highest-profile believer was SoftBank, which poured $1bn into Wirecard in 2019, assuaging other investors’ growing doubts—and cementing its own reputation as one of the world’s least discerning tech investors.