Customer cash frozen as Wirecard's United Kingdom business ordered to stop operating

Marco Green
June 29, 2020

A frantic week has seen Wirecard AG apply to German courts for insolvency, following the firm's board and executive team admitting to falsifying €1.9 billion of corporate accounts primarily related to Asian market activities.

AN Post customers with prepaid Money Currency cards have been left unable to access their money after United Kingdom authorities shut down activities of scandal hit German payments company Wirecard.

"We can not lift the restrictions without reassuring ourselves that the firm has been able to satisfy all our concerns for example that all clients' money is safe". The company could not confirm the amount of money involved.

Both said that customers' money is still safe, but will not be accessible for a time. Pending further actions from the FCA, Payoneer customers will temporarily be unable to withdraw the funds on their card, nor receive new payments onto their card until the issue has been resolved.

Card management service Curve, which has around half a million customers, told users to carry a backup card as Curve would be "suspended with immediate effect."

It should be noted that any funds that are in excess of the maximum balance of the Payoneer customer's cards are held by Payoneer and are therefore not impacted by the FCA's temporary freeze.

In a statement on its Website, the firm says: "We began our transition away from Wirecard a few months back and we are moving furiously down the path to complete this migration".

Anna said: "We expect the suspension to be lifted - the inability to use your account and card is temporal, and we are working to restore it as soon as possible". "We will provide further updates on our website as soon as we can".

"WDCS is working hard to have the steps in place which will enable the suspension to be lifted so business can resume as usual. We are hoping to be fully operational soon".

The FCA has told people affected to contact their card provider.

The action comes after the German parent firm Wirecard last week disclosed a €1.9bn (£1.7bn) hole in its accounts, and subsequently filed for insolvency. Former chief executive Markus Braun has been arrested by authorities in connection with the case, while the company's former chief operating officer is now being pursued by prosecutors.

Other reports by Click Lancashire

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