Here we go again...
It's happened before.
1999 in the US, a company called Landslide, providing adult verification services, involving credit-card payments as authentication.
Trouble was, some of the site using the service were making child porn available, and there was a lot of credit card fraud mixed in.
The operators of the site ended up in jail, with one of those crazy multi-lifetime sentences.
The names of credit-card holders in the UK were passed to the UK Police, who appeared to assume that every credit-card use was genuine and was linked to accessing child porn.
I remember, in my early years on Demon, the struggles there were against the misconceptions of people in power, the tendency to assume everything on the internet was illegal and dangerous. It's hard to avoid wondering how much of this has the same roots, particularly people who have to deal with the genuine bad stuff: the dangerous idiots were, in those days, a part of the Metropolitan Police called "Clubs & Vice".
That outfit, and later the NSPCC with "Satanic Child Abuse", had a reaction I can understand, but they came across as gullible, suffering from some sort of institutional PTSD that had them starting at shadows.
I don't think their solutions are any better.