Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 39

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1A
Chunk 39
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deposits. If
the mix
of our
deposits shifts
towards a
higher proportion
of
higher-cost deposits
for
any reason,
our 
funding costs would increase and our net interest
income would be expected to decrease.
OPERATIONAL RISKS 
We
and our
third-party providers
have been,
and expect
in the
future to
continue to
be, subject
to cyber-attacks,
which 
could cause substantial harm and have an adverse
effect on our business and results of operations. 
Cybersecurity
risks
for
large
financial
institutions
such
as
Popular
have
increased
significantly
in
recent
years
in
part 
because
of
the
proliferation
of
new
technologies,
such
as
mobile
banking,
cloud
hosting,
artificial
intelligence
and
the
ability
to 
conduct instant
financial transactions
anywhere globally,
as well
as due
to geopolitical
conflicts and
the increased
sophistication 
and
activities
of
organized
crime,
hackers,
terrorists,
nation-states,
hacktivists
and
other
parties.
The
risk
of
cyber-attacks
is 
expected to increase with the evolution and emergence
of new technologies such as artificial intelligence
and quantum computing.
In
the
ordinary
course
of
business,
we
rely
on
electronic
communications
and
information
systems
to
conduct
our 
operations
and
to
transmit
and
store
sensitive
data.
Notwithstanding
our
defensive
measures
and
the
significant
resources
we 
devote to protecting the security of our systems, there
is no assurance that all of our security measures
will be effective at all times, 
especially
as
the
threats
from
cyber-attacks
are
continuous
and
severe.
The
risk
of
a
security
breach
due
to
a
cyber-attack
is 
expected to increase as we
continue to expand our mobile
banking and other internet-based product offerings,
the use of the cloud 
for system development and hosting and internal
use of internet-based products and applications. 
We
continue to
detect and
identify attacks
that are
becoming