PayPal Gets Stung by ‘Bad Actors,’ Shuts 4.5 Million Accounts

PayPal Holdings Inc. said it closed 4.5 million accounts and lowered its forecast for new customers after finding “bad actors” were taking advantage of its incentives and rewards programs. Shares of the company fell by the most on record.

The payments giant, which is also overhauling its marketing strategy, said it no longer expects to achieve 750 million active accounts by 2025, abandoning a goal that contributed to a jump in spending last year on sales campaigns.

WATCH: PayPal shares plunge on the day.

Source: Bloomberg

“We regularly assess our active account base to ensure the accounts are legitimate,” Chief Financial Officer John Rainey said on a conference ...