In high-growth markets, where transparency can be limited and enforcement even more so, many global businesses are quietly exposed to commercial risk they never anticipated. One recent case involving an app developer and a mobile service provider in Latin America underscores just how severe those risks can become—especially when intermediaries are involved.
What should have been a standard six-figure transaction ended in suspected fraud, stalled revenue, and potential legal fallout. But here’s the real story: this didn’t need to happen.
The Transaction That Went Nowhere
The app developer had entered into a revenue-share agreement with a local telecom distributor to process in-app mobile payments. A scheduled payout from a mobile service provider was sent—on time—but rather than reaching the developer, the funds were redirected via an intermediary entity acting as a local collections agent.
On paper, this intermediary appeared to be a legitimate third-party facilitator. In reality, it was little more than a shell company: no active operations, no real assets, no accountability. Despite receiving the full payment from the telecom, the intermediary never forwarded a cent to the app developer.
Initial investigations suggest possible insider involvement, with warning signs of collusion at the payment source. What was meant to be a routine revenue transfer had now become a serious financial loss—one complicated by cross-border jurisdiction, weak local enforcement, and a legal black hole.
The Real Risk Is in the Structure
This case is not just about fraud—it’s about exposure. Companies that rely on third parties to process, hold, or redirect funds in complex territories often lack visibility into who they’re really dealing with. When those entities fail, delay, or disappear, the consequences can be severe—not just financially, but operationally and reputationally.
That’s where Vendsafe Global comes in.
Building Commercial Resilience Before Things Go Wrong
Situations like this are entirely preventable when businesses prioritise due diligence and contract design at the outset. At Vendsafe, we help organisations tighten the entire revenue chain—from contract negotiation to payment oversight—so they’re never caught off-guard by non-performance or misconduct.
In this specific case, had the publisher engaged Vendsafe’s services before onboarding the intermediary, several red flags would have been raised early:
- Our due diligence checks would have flagged the intermediary’s lack of operational legitimacy and liquidity.
- Our contract structuring expertise would have ensured jurisdictional enforcement and protective clauses, closing loopholes that bad actors often exploit.
- Our accounts receivable oversight would have triggered early intervention when payments stalled—ensuring accountability before funds were lost.
- And if enforcement had still been required, our global debt recovery network would have been activated, providing legal and commercial recourse.
Don’t Wait for a Crisis to Reassess Risk
This story is a cautionary tale for any business working with third parties across borders—especially in markets where financial opacity or weak regulation is the norm.
The video game company is now exploring regulatory and legal options, but the lost liquidity, operational disruption, and internal fallout are already done. At Vendsafe, we specialise in ensuring those kinds of losses never occur in the first place.
If your company is exposed to similar risks—be it via local agents, telecoms, fintech partners, or platform resellers—it’s time to rethink your approach. Prevention isn’t just about reducing loss. It’s about reclaiming control of your revenue streams and building systems that can scale without breaking.
Let’s talk about how Vendsafe Global can help you close the gaps—before they cost you.
