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"It was incredibly troubling," a former FTC analyst told CBS News, speaking on the condition of anonymity because portions of the case are still pending. The agency's findings made their way into the government's 2019 lawsuit against the website's parent company, Match Group. "Between 2013 and at least mid-2018," the lawsuit alleged, "consumers who were considering purchasing a Match.com subscription were generally not aware that as many as 25-30 percent of Match.com members who registered each day were using Match.com to perpetrate scams." Match Group told CBS News that it "believes the FTC allegations have no merit." But that allegation, online security experts say, pulls back a curtain on an intractable challenge that has confronted not only Match Group, but social media and online dating apps across the country: How to maintain an open environment that is easy for people to join, while at the same time imposing screening software that blocks technically sophisticated overseas scammers.
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"It's existential to our business to remain safe," Match Group CEO Bernard Kim told CBS News. The company says it has made significant strides in keeping scammers off its site. In response to questions from CBS News, Match Group touted "continuous investments — to prevent, monitor and remove bad actors who have violated our terms." They include both automated and manual scans for red-flag language and images and suspicious profiles, efforts it says remove 96% of "potentially improper accounts" within a day. Match told CBS News it consistently spends $125 million each year on trust and safety, and the team has grown by 30% in the past year. And yet, the measurable evidence is that efforts to protect online daters still have not slowed the criminal activity . In the five years since the FTC brought its case, a wave of romance scams has washed over the nation, with American victims losing more than $1 billion to overseas criminals in 2023 — an amount that is likely much larger because so many cases go unreported, law enforcement officials said. "It's a substantial problem, and it's one that's rapidly accelerating," says Arun Rao, deputy assistant attorney general for the Department of Justice's Consumer Protection Branch. Retired U.S. Postal Inspector Natalie Reda, who has investigated dozens of romance scam cases, said the problem has not been a simple one to solve. Online dating companies including Match Group do, she said, assist law enforcement on cases and hire former agents to help enhance security. "They have put in stopgaps, facial recognition, warnings on the websites, and to say all that, I can't throw them entirely under the bus," Reda said. But, she said even with all that, dating apps remain the primary "hunting grounds" for scammers in search of vulnerable targets. Targets like Laura Kowal , an Illinois widow who went on Match.com in 2018 and was quickly swept off her feet by a charming man who said he was an investment executive from Sweden named Frank Borg. She ended up sending her life's savings, $1.5 million, to the scammer behind the profile, without ever meeting in person. Kowal was found dead in the Mississippi River in 2020. An autopsy concluded she drowned, but did not determine whether foul play was involved or if she died by suicide. Laura Kowal, seen here at left with her daughter, Kelly Gowe, lost $1.5 million to a romance scammer and was later found dead. Family photo Match Group said when company officials were notified by federal law enforcement about the fraudulent "Frank Borg" profile, they removed the account immediately. The company would not say how long the profile was live on their site, or how many others matched with Frank. The "F-word" Just how much companies like Match Group have done to protect customers is a matter of disagreement in both law enforcement circles and among online security experts. Three former Match Group executives who spoke with CBS News about their experiences at the company described an uphill battle to protect customers. All three spoke on the condition they not be named. "It wasn't a real priority backed up by resources," said one security expert who recently left a senior position at Match Group, when asked about efforts to root out scammers on their apps. Kathryn Kosmides agreed. Kosmides runs a nonprofit called Garbo, which partnered with Match Group in 2021 to help improve security.
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