Share this article Share The Next, a social networking company, said it would stop accepting credit card payments and block all new credit cards from certain websites, including Facebook, Twitter and YouTube.
The move comes as President Donald Trump is expected to roll back regulations that were put in place in April to address cybersecurity and other issues.
The company said it will also stop accepting payments on mobile devices, and restrict the use of certain credit cards and debit cards.
The change is expected by mid-July, said CEO David L. Boulton.
“We are making this change to prevent fraudulent activity, avoid fraud, and prevent identity theft, in our stores and online,” he said in a statement.
Facebook and Twitter have been hit with lawsuits filed by consumers alleging they have been duped by fraudulent credit cards.
Boudreau said Facebook and Twitter were the only two sites that had made the decision to stop accepting payment.
According to data from the Federal Trade Commission, nearly $7.5 billion worth of fraudulent credit card purchases have been reported since March 2018, according to a study by the firm Credit Karma.
Bouts of fraudulent card transactions have increased more than 25% since March.
The company also said it had blocked ads on its sites and apps, and was adding new policies to help customers protect their accounts.
It said it was working with the US Securities and Exchange Commission and other regulators to investigate whether there was a security breach.
Shares in Boudoupy were up 1.6% to $8.10 on Monday.
(Reporting by James Dobson; Editing by David Stamp)