Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Advertise on LowEndTalk.com
FCA freezes credit cards issued by WireCard (Payoneer, Crypto, Anna Money, Curve, FairFX, Pockit)
New on LowEndTalk? Please read our 'Community Rules' by clicking on it in the right menu!

FCA freezes credit cards issued by WireCard (Payoneer, Crypto, Anna Money, Curve, FairFX, Pockit)

MechanicWebMechanicWeb Member, Provider

Today, the Financial Conduct Authority (FCA) issued requirements on Wirecard Card Solutions Limited (WCSL) in the UK, freezing all prepaid card activity for the time being.

Wirecard Card Solutions Limited (WCSL) is a subsidiary of Wirecard AG which has filed for insolvency.

Wirecard Card Solutions Limited (WCSL) issued credit cards of Payoneer, Crypto.com, Anna Money, Curve, FairFX, Pockit, and other financial companies. Roughly millions of users, freelancers, and small businesses have now had their funds frozen, they can't spend or withdraw them.

If you are affected or know any relevant information, please share your insights.

Links:

https://www.fca.org.uk/news/news-stories/requirements-imposed-wirecard-authorisation/
https://www.moneysavingexpert.com/news/2020/06/pockit--curve-and-other-prepaid-card-customers-see-accounts-froz/
https://sifted.eu/articles/wirecard-saga-fintech/
https://community.curve.app/t/wirecard-updates/
https://blog.payoneer.com/exclusive/wirecard-prepaid-card-update/
https://community.payoneer.com/en/discussion/67793/wirecard-issues-and-payoneer/

Thanked by 1Edmond

MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

«1

Comments

  • vovlervovler Member

    How much was missing? A few millions or billions?

    "They said it's RAID 5" - geekypixal

  • hzrhzr Member, Moderator

    @vovler said: How much was missing? A few millions or billions?

    2.1b

    Thanked by 1pike
  • XsltelXsltel Member, Provider

    Add Holvi to the list. both my Payoneer and Holvi master cards are termporarily suspended :(

    Xsltel OU | A One-man show powered by 250 grams of brain
    Offering reliable hosting services, Server management since 2011 and free cPanel hosting since 2020

  • WebProjectWebProject Member, Provider

    @hzr said:

    @vovler said: How much was missing? A few millions or billions?

    2.1b

    Why did the FCA take this action now?

    The FCA is the UK’s designated competent authority, responsible for granting firms based in the UK, permissions to undertake e-money activities and payment services and, it is within the FCA’s power to take supervisory action in certain cases to protect the interests of a firm’s customers. Under the EMRs, the FCA may impose such requirements as it considers appropriate which may require a firm to (a) take a specified action; or (b) refrain from taking a specified action. These types of requirements are known as ‘Own Initiative Requirements (OIREQ)’.

    Our primary objective is to protect the interests and money of consumers who use Wirecard. Following last week’s news of €1.9 billion missing from the accounts of the German company, Wirecard, we immediately placed requirements on the firm’s UK business so that it should not pay out or reduce any money it holds for its customers except on their instructions. We have been working closely with Wirecard UK and other authorities over the past few days to take action that protects consumers. We are continuing to do this and on 26 June, we took additional measures to require the firm to cease all regulated activities in order to further protect customer money. This now means customers money cannot be accessed.

    All of their customers accounts are not protected by FSCS, good luck to everyone who had any funds in their accounts.

    VPS Price Match Guarantee on: All our range of DDOS protected XEN-HVM VPS Plans
    Are you looking for best price for self-managed VPS? See WebProVPS website for more details.
  • hzrhzr Member, Moderator

    @WebProject said: Why did the FCA take this action now?

    Probably because they apparently lied to auditors for years complete with false documentation stating they had that much, I'm curious what kind of liability the Big 4 have for this incompetence

  • JoeFJoeF Member
    edited June 27

    Thankfully I emptied my old pockit account last week.

  • AidanAidan Member

    @hzr said: what kind of liability the Big 4 have for this incompetence

    https://finance.yahoo.com/news/crypto-card-issuer-wirecard-says-154846994.html

    EY messed up, no other way to say it.

    Internal controls compromise the largest part of a "bank" audit, the fact that executives at WireCard could override controls is unacceptable.

  • MechanicWebMechanicWeb Member, Provider
    edited June 27

    @hzr said: 2.1b

    To my understanding, that 2.1B was missing from Wirecard AG, a German company.

    Germany didn't freeze the Wirecard bank, which is also a subsidiary of Wirecard AG.

    Wirecard Solutions in the UK is also a subsidiary of Wirecard AG. Unlike Germany, the FCA in the UK froze Wirecard Solutions, which was the Master Card issuer.

    It seemed to me, they acted on haste, like they don't like prepaid cards. They were just looking for a reason. They do not care for the funds of the account holders, regardless of what they say.

    FCA froze ePayments in February. Up until now, no words from them when the ac holders can get money.

    They are an outdated monster protecting the interests of money monsters, not mass people.

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • LTnigerLTniger Member
    edited June 27

    @MechanicWeb said: To my understanding, that 2.1B was missing from Wirecard AG, a German company.

    No, you understood wrong. Those 2.1B was never in Wirecard company. CEO provided false information to creditors in order to receive massive loans. Now, after audit, this came clear. Document doctoring, plain and simple fraud.

    As a result Wirecard shares are $0 and CEO is going to trial as he is arrested (and latter free for 5 million EUR bail).

    The real question: how many fintech companies are the same? Who will fall next? Revolut?

    hostWP.net - Wordpress Hosting Platform.

  • MikeAMikeA Member, Provider

    I've had a few people bring this up that used them. Seems unfortunate.

    ExtraVM - AMD Ryzen VPS starting @ $3.50
    USA (TX, VA, FL), CA, FR, UK, SGP, AU

  • MechanicWebMechanicWeb Member, Provider

    @LTniger said: No, you understood wrong. Those 2.1B was never in Wirecard company. CEO provided false information to creditors in order to receive massive loans.

    Correct me if I am wrong, that CEO is Wirecard AG's CEO - the German Company, not WIrecard Solutions Limited's.

    WIrecard Solutions Limited is a subsidiary of Wirecard AG, and an independent UK based company, not German.

    Thanked by 1vimalware

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • jackbjackb Member, Provider

    @MechanicWeb said:

    @LTniger said: No, you understood wrong. Those 2.1B was never in Wirecard company. CEO provided false information to creditors in order to receive massive loans.

    Correct me if I am wrong, that CEO is Wirecard AG's CEO - the German Company, not WIrecard Solutions Limited's.

    WIrecard Solutions Limited is a subsidiary of Wirecard AG, and an independent UK based company, not German.

    Correct. The UK company was also profitable, and had no involvement from the people implicated in the Wirecard AG fraud.

    I would imagine the FCA has frozen the funds to ensure if anyone unscrupulous is left at Wirecard AG, that they don't try to siphon funds from the subsidiary. An abundance of caution, though an annoying move for end users.

    Afterburst - Awesome OpenVZ&KVM VPS in US+EU

  • MechanicWebMechanicWeb Member, Provider

    @MikeA said: Seems unfortunate.

    Unfortunate and a result of an outdated money mongering monitoring authority.

    I know a company who used them to pay salary. Approx $100K frozen. Some lost only $200. But that $200 is a month's salary in their country.

    I do not believe the FCA had taken these circumstances into account and acted on haste.

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • MechanicWebMechanicWeb Member, Provider

    @jackb said: Correct. The UK company was also profitable, and had no involvement from the people implicated in the Wirecard AG fraud.

    Thanks for confirming.

    I would imagine the FCA has frozen the funds to ensure if anyone unscrupulous is left at Wirecard AG, that they don't try to siphon funds from the subsidiary. An abundance of caution, though an annoying move for end users.

    Nope. Millions of freelancers, and small businesses rely on those cards for their bread and butter. The FCA did something similar in February, 2020. This is June.

    Those people never received those funds, and FCA went complete silent on the incident since.

    Their motives are not clear to me, but it is clearly not protecting the ac holders money.

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • RIYADRIYAD Member, Provider

    Lot of freelancers in my country uses Payoneer card and is only way to receive of their income. This is very sad , specially during this covid-19 pandemic :( , many did not cash out money from ATM , since they were staying home for lockdown .

    Host4Fun - Xeon E3 - 32GB RAM - SSD & HDD Dedicated Server - Only $79/month.

  • vovlervovler Member
    edited June 27

    I have a few Amazon payments that I already made before the funds got frozen and are "Upcoming", I wonder if Amazon will be able to charge them when they ship the products.

    "They said it's RAID 5" - geekypixal

  • RazzaRazza Member

    @vovler said: I have a few Amazon payments that I already made before the funds got frozen and are "Upcoming", I wonder if Amazon will be able to charge them when they ship the products.

    I would say probably not since all balances have been frozen.

  • momkinmomkin Member

    Unfortunately i was also affected by this as i have an amount of $18000 with payoneer :cold_sweat: which i cannot use because of the freeze .

  • YmpkerYmpker Member

    At least for german consumers it may be worth mentioning that if Boon.Planet (or a wirecard bank account) is your main and only bank account you probably won't have to pay any late-fees or Mahnungen. As a consumer it can't be assumed you could expect for smth like this incident to happen when Wirecard is/was a BaFin approved entity (Wirecard Bank AG that is). Going with that BGB § 286 states "(4) Der Schuldner kommt nicht in Verzug, solange die Leistung infolge eines Umstands unterbleibt, den er nicht zu vertreten hat." which basically expempts you from any late-fees, at least initially. It can probably be expected that within a reasonable time-frame (1-2 months perhaps) you'd open a new bank account with another bank and let your salary be paid to that one in order to pay your bills.

  • ExonHostExonHost Member, Provider

    @momkin said:
    Unfortunately i was also affected by this as i have an amount of $18000 with payoneer :cold_sweat: which i cannot use because of the freeze .

    You can withdraw 8000 as card limit is 10000. Above the 10k, funds in payoneer virtual account.

    ExonHost - Reliable Web Hosting Service Provider | Managed SSD Xen VPS | OpenVZ VPS
    ResellWays - Budget Shared Hosting & Reseller Hosting
  • ayiemyayiemy Member

    In this message recorded from his home in New York, our CEO Scott Galit directly addresses the current situation with Wirecard. His message is simple. Our customers are our top priority. We’re in constant contact with the FCA and Wirecard UK and have received reassurance that funds have been safeguarded and that the freeze is temporary. We know the circumstances are challenging and are dedicated to making sure all our services are once again available.

    https://www.facebook.com/Payoneer/videos/3332956640057390/

    quoted in payoneer FB.

  • MechanicWebMechanicWeb Member, Provider
    edited June 28

    @ayiemy said: quoted in payoneer FB.

    That message actually says nothing. It just restates that the funds are frozen. It does not talk about any new measures they are trying to help the users.

    The funds are actually not at Payoneer/Wirecard (WCSL)'s hand. FCA froze them based on shady motivations.

    This is not the first time FCA did this.

    It's a systematic reallocation of funds towards the UK government from people around the world that couldn't sue them (notice how US users are not affected by this freeze).

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • ManofServerManofServer Member
    edited June 28

    @MechanicWeb said:

    It's a systematic reallocation of funds towards the UK government from people around the world that couldn't sue them (notice how US users are not affected by this freeze).

    Aren't the USD cards also issued from Wirecard?

  • YmpkerYmpker Member
    edited June 28

    Just tried sending money from my Boon.Planet
    (Wirecard Bank AG) account to another bank account for testing and I was able to initiate the transfer without any error message showing the money as debited. Expecting it to arrive at my other bank account tomorrow. I am assuming Payoneer and the like are running on the UK branch from Wirecard which is different from BoonPlanet Wirecard Bank AG.

  • jackbjackb Member, Provider
    edited June 28

    @MechanicWeb said:
    It's a systematic reallocation of funds towards the UK government from people around the world that couldn't sue them (notice how US users are not affected by this freeze).

    With a claim that outlandish I think you'll need to post sources. The UK, although probably at its weakest for decades, is still a major world power. A few billion in cash isn't notable to the UKs finances

    Thanked by 1larmarat

    Afterburst - Awesome OpenVZ&KVM VPS in US+EU

  • MechanicWebMechanicWeb Member, Provider
    edited June 28

    @jackb said: With a claim that outlandish I think you'll need to post sources.

    You are right. Here are two previous incidents:

    https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000m4IXgAAM
    https://www.fca.org.uk/news/warnings/first-choice-finance-clone
    https://community.payoneer.com/en/discussion/67793/wirecard-issues-and-payoneer/

    For rest of the details, Google can provide an abundance of information, and the fact that mass people from around the globe never received anything back.

    @jackb said: The UK, although probably at its weakest for decades, is still a major world power. A few billion in cash isn't notable to the UKs finances

    It's the intention that drives them, I believe. Which is what matters most.

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • MechanicWebMechanicWeb Member, Provider

    @Ympker said: (Wirecard Bank AG) account to another bank account for testing and I was able to initiate the transfer without any error message showing the money as debited.

    Germany didn't place any limitation on the Wirecard Bank AG, except that it can't do any transaction with Wirecard AG.

    Thanked by 1Ympker

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • MechanicWebMechanicWeb Member, Provider

    @ManofServer said: Aren't the USD cards also issued from Wirecard?

    It's not the USD cards, but the users from the US. US users' funds were not frozen.

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • momkinmomkin Member

    @MechanicWeb said:

    @Ympker said: (Wirecard Bank AG) account to another bank account for testing and I was able to initiate the transfer without any error message showing the money as debited.

    Germany didn't place any limitation on the Wirecard Bank AG, except that it can't do any transaction with Wirecard AG.

    FCA says this is temporary freeze until the wirecard give them assurances to not move customers money to Germany so lets wait to see what's gonna happen i hope it will end will .

  • MechanicWebMechanicWeb Member, Provider

    @momkin said: FCA says this is temporary freeze

    They said the same in previous incidents. No one received their money.

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • momkinmomkin Member

    @MechanicWeb said:

    @momkin said: FCA says this is temporary freeze

    They said the same in previous incidents. No one received their money.

    The past incident it was because of Money laundering it's far away from the current situation !

  • NeoonNeoon Member

    @momkin said:

    @MechanicWeb said:

    @momkin said: FCA says this is temporary freeze

    They said the same in previous incidents. No one received their money.

    The past incident it was because of Money laundering it's far away from the current situation !

    Nah, I would not be so sure on that...
    "During its 20-year history, the company has been accused of money laundering, corruption and facilitating illegal gambling, although no charges"

  • momkinmomkin Member

    The thing i don't understand is how the money ended up in "wirecard" hands isn't supposed to be in the real bank ??

  • MechanicWebMechanicWeb Member, Provider

    @momkin said: The past incident it was because of Money laundering it's far away from the current situation !

    Not really that far. They all were prepaid cards. Easier to build a case against.

    If a government wants to build a money laundering case against any institution, they will be able to build that. Their intention was to cease their funds, which they did, not to protect end users. The end users were not involved in money laundering, they got nothing back.

    The FCA is now completely silent about those incidents.

    Take a look at the CEO of Wirecard AG for example, He is in bail now. Did anyone freeze his bank accounts? No. Then one may rightfully ask why they didn't freeze his bank accounts?

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • MechanicWebMechanicWeb Member, Provider

    @momkin said: The thing i don't understand is how the money ended up in "wirecard" hands isn't supposed to be in the real bank ??

    The actual money isn't in the hands of WIrecard. Wire Card Solutions Limited issued prepaid master cards. The money is in various US banks.

    But for the end users to access that money, FCA will need to unfreeze the master cards.

    MechanicWeb.com - Shared Hosting | Reseller Hosting | Cloud VPS | Dedicated Server
    NVMe SSD | cPanel | DirectAdmin | LiteSpeed | CloudLinux | MailChannels | JetBackup

  • YmpkerYmpker Member

    Looking on fb there's so many ppl affected through Payoneer or Holvi. Damn..

  • vpsguyvpsguy Member

    Germany to overhaul accounting regulation after Wirecard collapse
    Watchdog’s powers to be transferred to BaFin as deputy finance minister calls for ‘radical solutions’

    https://www.ft.com/content/e037d830-cfd8-4bca-853d-d49f48e67f13

    Thanked by 1Razza
  • FranciscoFrancisco Top Provider
    edited June 28

    @vpsguy said:
    Germany to overhaul accounting regulation after Wirecard collapse
    Watchdog’s powers to be transferred to BaFin as deputy finance minister calls for ‘radical solutions’

    https://www.ft.com/content/e037d830-cfd8-4bca-853d-d49f48e67f13

    Germany and final solutions never ends well.

    Francisco

    BuyVM - Free DirectAdmin, Softaculous, & Blesta! / Anycast Support! / Windows 2008, 2012, & 2016! / Unmetered Bandwidth!
    BuyShared - Shared & Reseller Hosting / cPanel + Softaculous + CloudLinux / Pure SSD! / Free Dedicated IP Address
  • vovlervovler Member

    "They said it's RAID 5" - geekypixal

  • raindog308raindog308 Moderator

    @Aidan said: EY messed up, no other way to say it.

    Internal controls compromise the largest part of a "bank" audit, the fact that executives at WireCard could override controls is unacceptable.

    Completely agree. Detecting that a company is falsifying information to alter its financial reports is the very definition of an audit.

    For LET support, please visit the support desk.

  • NeoonNeoon Member

    Well, you could join the class action lawsuit against EY maybe that brings you some money.

  • @vovler said:

    Thank you posting this. I have about $1200 in the payoneer account and hoping to get funds withdrawn as soon as the hold is lifted.

  • LTnigerLTniger Member

    @TheKiller said:

    @vovler said:

    Thank you posting this. I have about $1200 in the payoneer account and hoping to get funds withdrawn as soon as the hold is lifted.

    Don't keep your breath on this. First comes creditors and than customers.

    Thanked by 1TheKiller

    hostWP.net - Wordpress Hosting Platform.

  • YmpkerYmpker Member
    edited June 29

    Wirecard's "Marsalek" who was involved into leading Wirecard for some 10 years initially said that he'd show up for a hearing with Munich authorities now announced through his lawyer he won't be doing so lol. Rumor has it he is looking to get in contact with a certain "Saul Goodman".

  • fpmagicfpmagic Member

    Anyone wondering about crypto.com and Kris Marszalek? Unrelated?

  • LTnigerLTniger Member

    @fpmagic said:
    Anyone wondering about crypto.com and Kris Marszalek? Unrelated?

    News from crypto.com https://blog.crypto.com/our-statement-regarding-wirecard-uk/

    hostWP.net - Wordpress Hosting Platform.

  • I believe curve is now partially working, apparently they were already planning to move away from wirecard.

    Last update I saw is the card is working, not sure if android/apple pay is yet.

Sign In or Register to comment.