Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 15

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 15
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 could be adversely impacted.

We are dependent
on technology networks and systems to process, transmit and securely store electronic information and we could be subject to liability
if our technology systems fail to be secure.

We could be held liable
for damages or our reputation could suffer from security breaches or disclosure of confidential information or personal data. Through
Frictionless and other service providers, we are dependent on technology networks and systems to process, transmit and securely store
electronic information with our partners and with our customers. Security breaches of this infrastructure could lead to shutdowns or
disruptions of our systems and potential loss or unauthorized disclosure of confidential information or data, including personal data.
The theft and/or unauthorized use or publication of our, or our customers’, confidential information or other proprietary business
information as a result of such an incident could adversely affect our competitive position and reduce marketplace acceptance of our
services. Any failure in the networks or computer systems used by us or our customers could result in a claim for substantial damages
against us and significant reputational harm, regardless of our responsibility for the failure. In addition, through our other service
providers, we have access to or are required to manage, utilize, collect and store sensitive or confidential customer or employee data,
including personal data. As a result, we are subject to numerous U.S. and non-U.S. laws and regulations designed to protect this information,
such as various U.S. federal and state laws governing the protection of personal data. If any person, including any of our employees,
negligently disregards or intentionally breaches controls or procedures with which we are responsible for complying with respect to such
data, or otherwise mismanages or misappropriates that data, or if unauthorized access to or disclosure of data in our possession or control
occurs, we could be subject to liability and penalties in connection with any violation of applicable privacy laws and/or criminal prosecution,
as well as significant liability to our customers or our customers’ clients’ for breaching contractual confidentiality and
security provisions or privacy laws. The loss or unauthorized disclosure of sensitive or confidential customer or employee data, including
personal data, whether through breach of computer systems, systems failure, employee negligence, fraud or misappropriation, or otherwise,
could damage our reputation and cause us to lose customers. Similarly, unauthorized access to or through our information systems and
networks or those we develop or manage for our customers, whether by our employees or third parties, could result in negative publicity,
legal liability and damage to our reputation, which