Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 23

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 23
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would result in the failure of our computers to operate and would, if for an extensive period, adversely impact our reputation, brand
and future prospects.

Unauthorized disclosure
of data, whether through cybersecurity breaches, computer viruses or otherwise, could expose us to liability, protracted and costly litigation
and damage our reputation.

We store and/or transmit
sensitive data, and we have ultimate liability to our consumers for our failure to protect this data. If breaches occur our encryption
of data and other protective measures may not prevent unauthorized disclosure of data. Unauthorized disclosure of data or a cybersecurity
breach could harm our reputation and deter clients from using electronic payments generally, increase our operating expenses in order
to correct the breaches or failures, expose us to uninsured liability, increase our risk of regulatory scrutiny, subject us to lawsuits,
result in the imposition of material penalties and fines by state authorities and otherwise materially adversely affect our business,
financial condition and results of operations.

Customer complaints
or negative publicity about our customer service could affect attractiveness of our services adversely and, as a result, could have an
adverse effect on our business, financial condition and results of operations.

Customer complaints
or negative publicity about our customer service could diminish consumer confidence in, and the attractiveness of, our services. Breaches
of our consumers’ privacy and our security systems could have the same effect. We sometimes take measures to combat risks of fraud
and breaches of privacy and security, such as freezing consumer funds, which could damage relations with our consumers. These measures
heighten the need for prompt and attentive customer service to resolve irregularities and disputes. Effective customer service requires
significant personnel expense, and this expense, if not managed properly, could impact our profitability significantly. Any inability
by us to manage or train our customer service representatives properly could compromise our ability to handle customer complaints effectively.
If we do not handle customer complaints effectively, our reputation may suffer, and we may lose our customers’ confidence, which
could have a material adverse effect on our business, financial condition and results of operations.

Our payment system
might be used for fraudulent, illegal or improper purposes, which could expose us to additional liability and harm our business.

Despite measures we
have taken and continue to take, our payment system remains susceptible to potentially illegal or improper uses. These may include use
of our payment services in connection with fraudulent sales of goods or services, illicit sales of prescription medications or controlled
substances, software and other intellectual property piracy, money laundering, bank fraud and prohibited sales of