M&S checkout operator hit by claims of fraud

Telegraph

4 hours ago

A payments provider used by Marks & Spencer has become embroiled in a fraud scandal after it was accused of covering up fake transactions by some customers.
Worldline, one of the world's largest payments groups, had its shares temporarily suspended on Wednesday after investors took fright at allegations it had processed some payments on behalf of scammers and had poor money-laundering controls.
Shares in the French group plunged by nearly 40pc – knocking €300m (£256m) off its share price – because of the allegations, which claimed the business turned a blind-eye to a network of dubious customers.
Worldline is one of the world's largest payments processors and moves payments around the financial system for UK high street giants including M&S, JD Sports and Aldi among others.
There is no allegation that any of these Worldline customers knew or were involved in the claims or are accused of any wrongdoing.
Risky strategy
The Worldline claims were made by a consortium of 21 European newspapers, which alleged in its investigations that millions of euros worth of the French firm's revenues could be linked to 'high risk' customers.
According to the allegations, the company is accused of ignoring red flags to take on clients from the 'internet's shady corners' as it took a risky strategy in its push to grow its revenues.
In response, Worldline said it has strengthened its controls over the past two years, including terminating €130m worth of contracts with customers in breach of its compliance rules.
'Wherever the group identifies indications of non-compliant situations, additional checks are immediately undertaken, potentially leading to termination of the client relationship,' Worldline said.
'Worldline's Executive Management and Board of Directors are fully committed to strict compliance with regulation and risk prevention standards and to strictly enforce related rules and procedures with zero tolerance.'
Worldline was accused of turning a 'blind eye' to some customers' dubious business practices, as it scrambled to boost its revenues by taking advantage of the higher rates paid by the shady clients, the investigation says.
According to the claims, internal documents show Worldline processes hundreds of millions of euros worth of payments on behalf of such high-risk clients, including €50m in 2019 alone.
Worldline had just two employees responsible for overseeing its money laundering processes, despite having hundreds of high-risk customers, the investigation added.