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Fraud remains one of the most damaging yet often overlooked threats to businesses.

Globally, organizations lose an estimated 5% of their annual revenue to fraudulent activities—amounting to a staggering $3.7 trillion each year, Case IQ said.

Some of the most famous fraud cases in history didn't just hurt bank accounts — they destroyed entire companies.

Let's look at a few of the biggest corporate fraud scandals that brought once-powerful companies to their knees.

FTX: The Crypto Giant That Collapsed

FTX, a crypto trading platform founded in 2019, was once a booming business. Its founder, Sam Bankman-Fried, used billions of dollars from customers and investors to fund real estate, political donations, and risky investments.

In 2022, US regulators discovered that Bankman-Fried had funneled money from FTX to his other company, Alameda Research, US News said.

In 2024, he was sentenced to 25 years in prison. A judge stated, "The punishment must fit the seriousness of the crime.

And this was a serious crime." FTX's bankruptcy followed, with over $16 billion owed to creditors. Nearly all are expected to get their money back, but many missed out on the crypto boom.

Theranos: A Tech Dream Turned Nightmare

Elizabeth Holmes, a Stanford dropout, promised to change healthcare with Theranos, a blood-testing startup.

The company was worth $10 billion at its peak. But by 2015, it became clear the technology didn't work. In 2018, the company shut down.

Holmes and her partner Ramesh "Sunny" Balwani were both convicted of fraud and sentenced to more than a decade in prison. As of 2024, they are still appealing their convictions.

Enron: The Energy Empire That Lied

Enron was once hailed as "America's Most Innovative Company." It traded energy and had a fancy new digital platform.

But behind the scenes, it was hiding losses and inflating profits. In 2001, the truth came out, and Enron filed for bankruptcy. Thousands lost their jobs and savings. The scandal led to new laws to fight corporate fraud.

Wirecard: Europe's Billion-Euro Scam

Wirecard, a German payment firm, made headlines in 2020 when $2.1 billion went missing. It turns out, the money may have never existed.

CEO Markus Braun was arrested, and his partner Jan Marsalek fled and is now hiding in Russia. Their trial continues, but the company is gone.

Why These Stories Matter

Fraud doesn't just hurt companies — it affects workers, investors, and entire industries. These scandals remind us that no company is too big to fail when greed and dishonesty take over. Staying alert and building strong systems can help stop fraud before it starts.