Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 194

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 194
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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 restricted products.
In the past there have been news articles on how organized crime groups have used other payment services to transfer money in the course
of illegal transactions.

Criminals are using
increasingly sophisticated methods to engage in illegal activities such as counterfeiting and fraud. It is possible that incidents of
fraud could increase in the future. Our risk management policies and procedures may not be fully effective to identify, monitor and manage
these risks. We are not able to monitor in each case the sources for our counterparties’ funds or the ways in which they use them.
Increases in chargebacks or other liability could have a material adverse effect on our business, financial condition and results of
operations. Furthermore, an increase in fraudulent transactions or publicity regarding chargeback disputes could harm our reputation
and reduce consumer confidence in the use of our products.

14

We may not be
able to successfully protect the intellectual property we license or own and may be subject to