Tinder parent Match Group (NASDAQ: MTCH) is facing bipartisan pressure from U.S. senators who are demanding answers on how the company protects users as romance scams fuel billions in losses.
Senators Demand Transparency
Sens. Maggie Hassan (D-N.H.) and Marsha Blackburn (R-Tenn.) sent a letter Wednesday to Match Group CEO Spencer Rascoff, requesting detailed records on the company's fraud-prevention policies, safety measures and financial investments in user protection.
"Romance scams, in which fraudsters form relationships to induce money or gifts from victims, have become a leading form of financial fraud in the United States, with annual losses reaching at least $1.3 billion," the senators wrote, citing Federal Trade Commission data.
They warned that Match Group's design practices may have allowed scammers to flourish on its platforms, noting a 2019 FTC allegation that the company exposed users to fraudulent accounts.
Match Group Responds
Yoel Roth, Match Group's head of trust and safety, defended the company's efforts in a statement to The Hill.
"Protecting users from scams is essential to our business and to earning the trust people place in our platforms," Roth said, pointing to new fraud detection tools and collaborations with law enforcement.
Match Group previously announced plans to roll out background checks across its apps, including Tinder, in 2021.
Match Group shares fell 2.27% on Wednesday and are down more than 4% over the past five sessions, according to Benzinga Pro.
The company reported $864 million in revenue last quarter and expects $910 million to $920 million in the current period.
Rising Threat Of Romance And Crypto Scams
The scrutiny comes amid a global surge in so-called "pig butchering" scams, where criminals cultivate fake online relationships before tricking victims into fraudulent cryptocurrency investments.
Authorities say such scams can stretch on for months, with losses running into the billions each year.
The U.S. Institute of Peace estimates that criminal networks tied to romance and crypto scams have stolen about $64 billion annually as of 2023, often coercing individuals to help run the schemes.
Benzinga's Edge Stock Rankings indicate that MTCH is on an upward trajectory over the medium and long term, while showing a short-term decline, with additional performance details available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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