Wirecard: A Facade of Innovation…How the Biggest Fraud in German History Unravelled

The New Yorker | Ben Taub | Feb 27, 2023

Jan Marsalek, Wirecard’s C.O.O., who embezzled tens of millions of dollars from the company, rented a secret mansion near the Russian consulate in Munich, where he held meetings with spies and government officials.Illustrations by Harol Bustos

The tech company Wirecard was embraced by the German élite. But a reporter discovered that behind the façade of innovation were lies and links to Russian intelligence.

• Late in the spring of 2020, Jan Marsalek, an Austrian bank executive, was a widely admired figure in the European business community—charismatic, trilingual, and well travelled. Even at his busiest, as the chief operating officer of Wirecard, Germany’s fastest-growing financial-technology company, he would assure subordinates who sought a minute of his time that he had one, just for them. “For you, always,” he used to say. But he would say that to almost everyone.
• Marsalek’s identity was inextricable from that of the company, a global payment processor that was headquartered outside Munich and had a banking license. He had joined in 2000, on his twentieth birthday, when it was a startup. He had no formal qualifications or work experience, but he showed an inexhaustible devotion to Wirecard’s growth.
  • The company eventually earned the confidence of Germany’s political and financial élite, who considered it Europe’s answer to PayPal. When Wirecard wanted to acquire a Chinese company, Chancellor Angela Merkel personally took up the matter with President Xi Jinping.

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• Then, on June 18, 2020, Wirecard announced that nearly two billion euros was missing from the company’s accounts. The sum amounted to all the profits that Wirecard had ever reported as a public company. There were only two possibilities: the money had been stolen, or it had never existed.
  • The Wirecard board placed Marsalek on temporary leave. The missing funds had supposedly been parked in two banks in the Philippines, and Wirecard’s Asia operations were under Marsalek’s purview. Before leaving the office that day, he told people that he was going to Manila, to track down the money.

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