Fintech companies across APAC are scaling rapidly — but many are overlooking a critical area of vulnerability: insider risks. Insider risks for fintech companies in APAC, including leadership liability, service failures, and internal fraud, are becoming just as significant as external cyber threats.
While cyber threats remain a dominant concern, not all threats originate from external attackers. Leadership missteps, service delivery failures, and insider misconduct present equally significant, yet often underestimated, exposures.
This article outlines the insider risks fintech companies in APAC must manage — and how appropriate insurance coverage can act as a vital strategic safeguard.
The Strategic Imperative for Fintech Companies
Fintech growth across Asia-Pacific has accelerated at an unprecedented pace — but so has the complexity of risk exposure.
While mitigating cyber threats remains essential, true operational resilience demands a multi-dimensional risk strategy that addresses:
- Internal misconduct and financial crime (Crime Insurance)
- Service delivery integrity and contractual liabilities (Professional Indemnity Insurance)
- Leadership accountability (Directors & Officers Liability)
Professional liabilities extend beyond service errors — they include breaches of contract, failure to meet performance obligations, and negligent misstatements that can trigger lawsuits, regulatory action, and reputational loss.
Failing to integrate these protections exposes fintech companies to operational disruptions. It also risks existential reputational damage and regulatory intervention.
Internal Fraud: The Overlooked Breach
In 2023, ByBit Fintech Ltd, a cryptocurrency exchange operating in Singapore, discovered that an employee, Ms. Ho Kai Xin, had misused her position to unlawfully transfer substantial amounts of the stablecoin Tether (USDT) to cryptocurrency wallets under her control. The Singapore High Court recognized the misappropriated USDT as property held in trust, setting a significant legal precedent in the realm of digital assets.
Risk in Context:
As fintech companies expand rapidly across the Asia-Pacific region, they often operate with decentralized structures and multiple regional teams. This growth can lead to heightened exposure to internal fraud, fund misappropriation, and unauthorized transactions, especially when robust internal controls are not in place.
How Crime Insurance Protects:
- Provides coverage for losses arising from employee theft, vendor collusion, fraudulent fund transfers, and dishonest acts.
- Offers financial recovery for breaches that circumvent cybersecurity protocols through insider access.
Strategic Insight:
Implementing comprehensive risk management strategies, including Crime Insurance, is crucial for fintech companies to safeguard against unforeseen internal breaches and maintain stakeholder confidence.
Professional Indemnity Risks: Service Delivery Failures in High-Trust Markets
In 2023, DBS Bank, Singapore’s largest bank, experienced multiple significant digital banking service disruptions. Notably, on March 29, customers were unable to access online banking services, including the mobile app and PayLah!, from approximately 8:30 AM to 5:45 PM. Subsequent outages occurred on May 5 and October 14, affecting online banking, payment services, and ATM operations. The Monetary Authority of Singapore (MAS) deemed these disruptions “unacceptable,” imposing additional capital requirements and restricting DBS from acquiring new business ventures for six months. The bank allocated S$80 million to enhance system resiliency and paused all non-essential IT changes for six months .
Risk in Context:
In high-trust fintech markets like Singapore, operational errors, system outages, and service delivery failures can trigger significant client claims—even absent malicious intent. Such incidents not only erode customer trust but also invite regulatory scrutiny and potential financial penalties.
How Professional Indemnity Insurance Protects:
Covers negligence, errors, omissions, and breach of service obligations.
Provides financial support for legal defense, settlements, and regulatory penalties tied to service failures.
Strategic Insight:
Professional liability exposure is not theoretical—it is an operational reality for payment platforms, trading apps, and embedded finance solutions operating at scale. Implementing comprehensive risk management strategies, including Professional Indemnity Insurance, is crucial to safeguard against unforeseen service disruptions and maintain stakeholder confidence.
Leadership Liability: Investor Action and Executive Accountability in Fintech
Case Example:
Viva Wallet, a prominent Greece-based payments fintech, found itself at the center of a major leadership dispute after global banking giant JPMorgan Chase filed two lawsuits against the company and several of its top executives in early 2025. JPMorgan had acquired a 48.5% stake in Viva Wallet as part of a strategic investment, with expectations of further integration and shared governance.
However, the lawsuits allege that Viva Wallet’s CEO and three executives violated shareholder agreements and fiduciary duties, including transferring assets and executing material business decisions without JPMorgan’s consent. These actions, JPMorgan claims, significantly diluted the value of its investment and constituted deliberate mismanagement. The lawsuits—filed in both Greece and the UK—seek damages of €916 million, underscoring the scale of the fallout and the personal liability now facing the fintech’s leadership.
Risk in Context:
As fintech companies attract institutional capital and expand cross-border operations, the expectations on leadership rise dramatically. Breaches of trust—whether through governance failures or shareholder disputes—can trigger direct legal action not just against the company, but against individual directors and officers. For investor-backed fintechs, D&O exposure doesn’t require regulatory violation—it can arise from shareholder claims of negligence or breach of agreement.
How Directors & Officers Insurance Protects:
Provides coverage for legal defense costs, settlements, and damages tied to claims against leadership for mismanagement or fiduciary breach.
Shields the personal assets of executives from lawsuits brought by investors, regulators, or other stakeholders.
Offers critical protection during shareholder disputes, boardroom transitions, and corporate restructuring.
Strategic Insight:
Investor lawsuits are an increasingly common source of D&O exposure in high-growth fintech. As seen in the Viva Wallet case, even strategic partnerships can unravel into complex legal disputes. For fintech leaders navigating acquisitions, investment rounds, or international expansion, D&O insurance is not a luxury—it’s an essential layer of protection against the personal liability risks that come with executive decision-making.
How Continuum Supports Fintech Resilience
Continuum specializes in tailored insurance and risk management solutions for emerging fintech leaders across APAC and beyond.
We offer modular programs that evolve with your business lifecycle, including:
- Crime Insurance – Covers financial losses from employee dishonesty, fund misappropriation, and insider-driven fraud.
Professional Indemnity (PI) Insurance – Safeguards against claims arising from service delivery failures, professional negligence, and contractual breaches.
Directors and Officers (D&O) Insurance – Protects leadership from claims related to governance failures and fiduciary missteps.
Cyber Insurance – Protects against data breaches, business interruption, and digital asset compromise.
Our expertise empowers fintech innovators to protect what they are building — enabling them to scale securely, navigate evolving regulatory frameworks, and sustain long-term growth with confidence.
Contact us today to build a risk management strategy that grows with you — protecting leadership, operations, and innovation at every stage.
