Scammers turn dating apps into "hunting grounds." Could companies do more?

When nan Federal Trade Commission began investigating problems related to romance scams 5 years ago, nan user watchdog agency's analysts gained entree to soul information from 1 of nan biggest players successful nan online making love abstraction — Match.com. 

"It was incredibly troubling," a erstwhile FTC expert told CBS News, speaking connected nan information of anonymity because portions of nan lawsuit are still pending. 

The agency's findings made their measurement into nan government's 2019 suit against nan website's genitor company, Match Group. "Between 2013 and astatine slightest mid-2018," nan suit alleged, "consumers who were considering purchasing a Match.com subscription were mostly not alert that arsenic galore arsenic 25-30 percent of Match.com members who registered each time were utilizing Match.com to perpetrate scams."

Match Group told CBS News that it "believes nan FTC allegations person nary merit." But that allegation, online information experts say, pulls backmost a curtain connected an intractable situation that has confronted not only Match Group, but societal media and online making love apps crossed nan country: How to support an unfastened situation that is easy for group to join, while astatine nan aforesaid clip imposing screening package that blocks technically blase overseas scammers.

"It's existential to our business to stay safe," Match Group CEO Bernard Kim told CBS News.

The institution says it has made important strides successful keeping scammers disconnected its site. In consequence to questions from CBS News, Match Group touted "continuous investments — to prevent, show and region bad actors who person violated our terms." They see some automated and manual scans for red-flag connection and images and suspicious profiles, efforts it says region 96% of "potentially improper accounts" wrong a day. Match told CBS News it consistently spends $125 cardinal each twelvemonth connected spot and safety, and nan squad has grown by 30% successful nan past year. 

And yet, nan measurable grounds is that efforts to protect online daters still person not slowed the criminal activity. In nan 5 years since nan FTC brought its case, a wave of romance scams has washed complete nan nation, pinch American victims losing much than $1 cardinal to overseas criminals successful 2023 — an magnitude that is apt overmuch larger because truthful galore cases spell unreported, rule enforcement officials said. 

"It's a important problem, and it's 1 that's quickly accelerating," says Arun Rao, lawman adjunct lawyer wide for nan Department of Justice's Consumer Protection Branch.

Retired U.S. Postal Inspector Natalie Reda, who has investigated dozens of romance scam cases, said nan problem has not been a elemental 1 to solve. Online making love companies including Match Group do, she said, assistance rule enforcement connected cases and prosecute erstwhile agents to thief heighten security.

"They person put successful stopgaps, facial recognition, warnings connected nan websites, and to opportunity each that, I can't propulsion them wholly nether nan bus," Reda said. But, she said moreover pinch each that, making love apps stay nan superior "hunting grounds" for scammers successful hunt of susceptible targets.

Targets for illustration Laura Kowal, an Illinois widow who went connected Match.com successful 2018 and was quickly swept disconnected her feet by a charming man who said he was an finance executive from Sweden named Frank Borg. She ended up sending her life's savings, $1.5 million, to nan scammer down nan profile, without ever gathering successful person. Kowal was recovered dormant successful nan Mississippi River successful 2020. An autopsy concluded she drowned, but did not find whether foul play was progressive aliases if she died by suicide.

Laura Kowal, seen present astatine near pinch her daughter, Kelly Gowe, mislaid $1.5 cardinal to a romance scammer and was later recovered dead. Family photo

Match Group said erstwhile institution officials were notified by national rule enforcement astir nan fraudulent "Frank Borg" profile, they removed nan relationship immediately. The institution would not opportunity really agelong nan floor plan was unrecorded connected their site, aliases really galore others matched pinch Frank.

The "F-word"

Just really overmuch companies for illustration Match Group person done to protect customers is simply a matter of disagreement successful some rule enforcement circles and among online information experts. Three erstwhile Match Group executives who said pinch CBS News astir their experiences astatine nan institution described an uphill conflict to protect customers. All 3 said connected nan information they not beryllium named.

"It wasn't a existent privilege backed up by resources," said 1 information master who precocious near a elder position astatine Match Group, erstwhile asked astir efforts to guidelines retired scammers connected their apps. 

Kathryn Kosmides agreed. Kosmides runs a nonprofit called Garbo, which collaborated pinch Match Group successful 2021 to thief amended security. In a press merchandise announcing their collaboration, nan institution called her exertion "thoughtful and groundbreaking." She described nan acquisition arsenic dispiriting.

"They don't want clash connected these apps," Kosmides said, explaining that "friction" is thing that makes it harder for group to motion up for a making love app. In nan industry, she said, clash is "the F-word."  

Match Group claims that's mendacious and said successful a connection that, successful fact, it employs a muscular authorities to surface caller users. 

The company, which operates dozens of celebrated making love apps including Tinder, Hinge, and The League, is nan largest subordinate successful online dating. But scammers besides person exploited different mainstream societal media sites to hunt for imaginable victims. Kosmides said nan reluctance to walk money connected what tech firms telephone "trust and safety" is simply a problem industry-wide.

"We've talked to each online making love level retired location from nan largest, nan smallest, and they each person akin thoughts and feelings astir spot and safety," Kosmides said. "Trust and information is not generating capable gross for them to put successful it."

Law enforcement officials told CBS News nan companies will request to play a captious domiciled successful immoderate effort to incorporate nan dispersed of romance and different scams.

"We deliberation it's really important for nan tech companies to measurement up, and nan financial institutions to measurement up and curtail nan maltreatment of American citizens," said James C. Barnacle, Jr. who oversees nan financial crimes conception of nan FBI.

"Entitled to immunity"

One of nan authorities agencies that takes a lead domiciled successful protecting consumers from fraud is nan Federal Trade Commission. 

In 2019 nan FTC revenge a suit against Match.com's genitor institution successful national tribunal successful Texas alleging nan institution had grounded to adequately surface retired fraudulent accounts connected nan Match.com site, and had exposed non-subscribers to messages from accounts nan institution had identified arsenic imaginable scammers.

Match Group responded successful tribunal filings, saying that while nan institution acknowledges immoderate users effort to subordinate nan tract "for illegitimate reasons," nan institution goes "to bonzer lengths, astatine awesome disbursal to it, to artifact specified users and protect morganatic subscribers and non-subscribers."

The institution besides posted a connection online astatine nan clip accusing nan FTC of having "relied connected cherry-picked information to make outrageous claims and we intend to vigorously take sides ourselves against these claims successful court."

The lawsuit has moved slowly. U.S. District Judge Ed Kincaid denied efforts by nan FTC to present complete 100 pages of customer complaints that had been made disposable to nan Better Business Bureau, arguing they were hearsay. And he dismissed a information of nan government's lawsuit aft nan institution based on it was protected by a proviso of nan rule governing nan net known arsenic Section 230 of nan Communications Decency Act. The rule protects platforms for illustration Match.com from liability for wrongdoing committed by 3rd parties connected its site. Kincaid ruled that "Match is entitled to immunity." 

A "common sense" effort successful Congress

There person been efforts to unit making love sites for illustration Match.com to do much to protect users. U.S. Rep. Brittany Pettersen, a Democrat from Colorado, said she has been disappointment by what she sees arsenic tech companies shielding themselves pinch nan national immunity proviso to debar challenges for illustration scammers cruising making love sites.

"There is perfectly a spread successful work and accountability for tech companies crossed nan board," Pettersen said. "They wholly opt retired of immoderate responsibility."

Pettersen has co-authored a measure that would unit making love apps to notify users erstwhile they've been contacted by known scammers. 

She says it is simply a "common sense" measurement to thief protect making love app users. The authorities has bipartisan support, and has been voted retired of committee successful nan House. But transition is still an unfastened question.

"You are going up against large typical interests," she said. "There's a batch of money down immoderate of these companies that ultimately, if they are opposed, will person large influence."

Match.com's genitor institution has spent $9 cardinal connected lobbying fees successful nan past 5 years, according to legislature records. When asked if Match supported aliases opposed Petterson's bill, a institution spokesperson said its squad was "in constructive conversations" pinch nan lawmakers and person supported akin bills connected nan authorities level.

"Things hap successful life"

Last month, Match Group hired nan erstwhile caput of information from nan institution formerly known arsenic Twitter, Yoel Roth, to effort and tackle nan problem. He told Wired he hoped to velocity up nan company's consequence to customer fraud complaints, and activity retired solutions pinch different online making love platforms.

"I really deliberation nan spot and information industry, collectively, needs to commencement to attack these arsenic shared problems alternatively than thing that each institution handles successful isolation," he told Wired.

The week Roth's hiring was announced, CBS News caught up pinch Match Group CEO Bernard Kim up of a nationalist event. In a little interview, he defended nan company's record, saying it has invested "a tremendous magnitude of capital, unthinkable talent connected spot and safety. It is nan first and foremost apical privilege for america arsenic an organization."

"If you look astatine our finance complete nan past respective years, we've only accrued our, nan number of talented people, activity that's focused successful this area," Kim said.

Asked really he would reside Match Group customers who person mislaid money to scammers, successful immoderate cases life savings, Kim said he had "a tremendous magnitude of empathy."

"Look, I mean, things hap successful life. That's really difficult," he said. "But I mean, our occupation is to support group safe connected our platforms. That is [the] astir important point to us."

CBS News investigative reporters Pat Milton, Clare Hymes and Alyssa Spady contributed to this report.

If you aliases personification you cognize has been affected by a romance scam, please stock your communicative pinch america astatine [email protected]