MemGPT/example-sec-filings · Datasets at Hugging Face

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exclusive or preferred means of payment for many consumers.

*We are subject to payment-related fraud and an increase in or failure
to deal effectively with fraud, fraudulent activities, fictitious
transactions, or illegal transactions would materially adversely affect
our business, results of operations, and financial condition.*

We process a significant volume and dollar value of transactions on a
daily basis. When Hosts do not fulfill their obligations to guests,
there are fictitious listings or fraudulent bookings on our platform, or
there are Host account takeovers, we have incurred and will continue to
incur losses from claims by Hosts and guests, and these losses may be
substantial. Such instances have and can lead to the reversal of
payments received by us for such bookings, referred to as a
"hargeback."For the year ended December 1, 2022, total chargeback

35

expense was \$119.6 million. The capabilities of criminal fraudsters,
combined with individuals'susceptibility to fraud may cause our Hosts
and guests to be subject to ongoing account takeovers and identity fraud
issues. While we have taken measures to detect and reduce the risk of
fraud, there is no guarantee that they will be successful and they
require continuous improvement and optimization of continually evolving
forms of fraud to be effective. Our ability to detect and combat
fraudulent schemes, which have become increasingly common and
sophisticated, could be adversely impacted by the adoption of new
payment methods, the emergence and innovation of new technology
platforms, including mobile and other devices, and our growth in certain
regions, including in regions with a history of elevated fraudulent
activity. We expect that technically-knowledgeable criminals will
continue to attempt to circumvent our anti-fraud systems including
through account takeovers and cybersecurity breaches. In addition, the
payment card networks have rules around acceptable chargeback ratios. If
we are unable to effectively combat fictitious listings and fraudulent
bookings on our platform, combat the use of fraudulent or stolen credit
cards, or otherwise maintain or lower our current levels of chargebacks,
we may be subject to fines and higher transaction fees or be unable to
continue to accept card payments because payment card networks have
revoked our access to their networks, any of which would materially
adversely impact our business, results of operations, and financial
condition.

Our payments platform is susceptible to potentially illegal or improper
uses, including money laundering, transactions in violation of economic
and trade sanctions, corruption and bribery, terrorist financing,
fraudulent listings, Host account takeovers, or the facilitation of
other illegal activity. Use of our payments platform for illegal or
improper uses has subjected us, and may subject us in the future, to
claims, lawsuits, and government and regulatory investigations,
inquiries, or requests, which could result in liability and reputational
harm for us. We have taken measures to detect and reduce fraud and
illegal activities, but these measures need to be continually improved
and may add friction to our booking process. These measures may also not
be effective against fraud and illegal activities, particularly new and
continually evolving forms of circumvention. If these measures do not
succeed in reducing fraud, our business, results of operations, and
financial condition would be materially adversely affected.

*Our payments operations are subject to extensive government regulation
and oversight. Our failure to comply with extensive, complex,
overlapping, and frequently changing laws, rules, regulations, policies,
legal interpretations, and regulatory guidance could materially
adversely affect our business, results of operations, and financial
condition.*

Our payments platform is subject to various laws, rules, regulations,
policies, legal interpretations, and regulatory guidance, including
those governing: cross-border and domestic money transmission and funds
transfers; stored value and prepaid access; foreign exchange; data
privacy, and data security; banking secrecy; payment services (including
payment processing and settlement services); consumer protection;
economic and trade sanctions; anti-corruption and anti-bribery; and
anti-money laundering and counter-terrorist financing. As we expand and
localize our international activities, we have and will become
increasingly subject to the laws of additional countries or geographies.
In addition, because we facilitate bookings on our platform worldwide,
one or more jurisdictions may claim that we or our customers are
required to comply with their laws. Laws regulating our payments
platform outside of the United States often impose different, more
specific, or even conflicting obligations on us, as well as broader
liability. For example, certain transactions that may be permissible in
a local jurisdiction may be prohibited by regulations of the U.S.
Department of the Treasury' Office of Foreign Assets Control ("FAC" or
U.S. anti-money laundering or counter-terrorist financing regulations.

We have assessed, and will continue to assess, the adequacy of our
policies, procedures, and internal controls for ensuring compliance with
applicable laws, rules, regulations, policies, legal interpretations,
and regulatory guidance, including the ones described below. Through
these assessments, we have identified, and may in the future identify,
certain gaps or weaknesses in our existing compliance programs,
including in our policies, procedures, or internal controls. As a result
of findings from these assessments, we have and may in the future take
certain actions, such as implementing enhancements to our compliance
measures and amending, updating, or revising our policies, procedures,
and internal controls, and other operational frameworks, designed to
monitor for and ensure compliance with existing and new laws, rules,
regulations, policies, legal interpretations, and regulatory guidance.
Implementing appropriate measures to fully remediate or address findings

exclusive or preferred means of payment for many consumers.

*We are subject to payment-related fraud and an increase in or failure

to deal effectively with fraud, fraudulent activities, fictitious

transactions, or illegal transactions would materially adversely affect

our business, results of operations, and financial condition.*

We process a significant volume and dollar value of transactions on a

daily basis. When Hosts do not fulfill their obligations to guests,

there are fictitious listings or fraudulent bookings on our platform, or

there are Host account takeovers, we have incurred and will continue to

incur losses from claims by Hosts and guests, and these losses may be

substantial. Such instances have and can lead to the reversal of

payments received by us for such bookings, referred to as a

"hargeback."For the year ended December 1, 2022, total chargeback

35

expense was \$119.6 million. The capabilities of criminal fraudsters,

combined with individuals'susceptibility to fraud may cause our Hosts

and guests to be subject to ongoing account takeovers and identity fraud

issues. While we have taken measures to detect and reduce the risk of

fraud, there is no guarantee that they will be successful and they

require continuous improvement and optimization of continually evolving

forms of fraud to be effective. Our ability to detect and combat

fraudulent schemes, which have become increasingly common and

sophisticated, could be adversely impacted by the adoption of new

payment methods, the emergence and innovation of new technology

platforms, including mobile and other devices, and our growth in certain

regions, including in regions with a history of elevated fraudulent

activity. We expect that technically-knowledgeable criminals will

continue to attempt to circumvent our anti-fraud systems including

through account takeovers and cybersecurity breaches. In addition, the

payment card networks have rules around acceptable chargeback ratios. If

we are unable to effectively combat fictitious listings and fraudulent

bookings on our platform, combat the use of fraudulent or stolen credit

cards, or otherwise maintain or lower our current levels of chargebacks,

we may be subject to fines and higher transaction fees or be unable to

continue to accept card payments because payment card networks have

revoked our access to their networks, any of which would materially

adversely impact our business, results of operations, and financial

condition.

Our payments platform is susceptible to potentially illegal or improper

uses, including money laundering, transactions in violation of economic

and trade sanctions, corruption and bribery, terrorist financing,

fraudulent listings, Host account takeovers, or the facilitation of

other illegal activity. Use of our payments platform for illegal or

improper uses has subjected us, and may subject us in the future, to

claims, lawsuits, and government and regulatory investigations,

inquiries, or requests, which could result in liability and reputational

harm for us. We have taken measures to detect and reduce fraud and

illegal activities, but these measures need to be continually improved

and may add friction to our booking process. These measures may also not

be effective against fraud and illegal activities, particularly new and

continually evolving forms of circumvention. If these measures do not

succeed in reducing fraud, our business, results of operations, and

financial condition would be materially adversely affected.

*Our payments operations are subject to extensive government regulation

and oversight. Our failure to comply with extensive, complex,

overlapping, and frequently changing laws, rules, regulations, policies,

legal interpretations, and regulatory guidance could materially

adversely affect our business, results of operations, and financial

condition.*

Our payments platform is subject to various laws, rules, regulations,

policies, legal interpretations, and regulatory guidance, including

those governing: cross-border and domestic money transmission and funds

transfers; stored value and prepaid access; foreign exchange; data

privacy, and data security; banking secrecy; payment services (including

payment processing and settlement services); consumer protection;

economic and trade sanctions; anti-corruption and anti-bribery; and

anti-money laundering and counter-terrorist financing. As we expand and

localize our international activities, we have and will become

increasingly subject to the laws of additional countries or geographies.

In addition, because we facilitate bookings on our platform worldwide,

one or more jurisdictions may claim that we or our customers are

required to comply with their laws. Laws regulating our payments

platform outside of the United States often impose different, more

specific, or even conflicting obligations on us, as well as broader

liability. For example, certain transactions that may be permissible in

a local jurisdiction may be prohibited by regulations of the U.S.

Department of the Treasury' Office of Foreign Assets Control ("FAC" or

U.S. anti-money laundering or counter-terrorist financing regulations.

We have assessed, and will continue to assess, the adequacy of our

policies, procedures, and internal controls for ensuring compliance with

applicable laws, rules, regulations, policies, legal interpretations,

and regulatory guidance, including the ones described below. Through

these assessments, we have identified, and may in the future identify,

certain gaps or weaknesses in our existing compliance programs,

including in our policies, procedures, or internal controls. As a result

of findings from these assessments, we have and may in the future take

certain actions, such as implementing enhancements to our compliance

measures and amending, updating, or revising our policies, procedures,

and internal controls, and other operational frameworks, designed to

monitor for and ensure compliance with existing and new laws, rules,

regulations, policies, legal interpretations, and regulatory guidance.

Implementing appropriate measures to fully remediate or address findings