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Match Group (MTCH) Offers Tips to Avoid Romance Scams for Users

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Match Group (MTCH - Free Report) is rolling out an in-app campaign across a number of its big apps to warn users about potential romance scams.

Throughout the month of January, subscribers across Tinder, Hinge, Match and Plenty of Fish will begin to receive messages promoting tips and red flags to watch out for to help identify potential bad actors. It marks the first time Match Group is launching a broad education campaign on a number of its family of apps across 15 countries.

Romance scams reported in the United States result in higher losses than any other type of scam, according to the Federal Trade Commission. Since 2020, consumers have reported more than $300 million in losses. In 2022, data from the Global Anti-Scam Organization report indicates that the average reported loss was more than $190,000, up from $120,000 in 2021.

Match Group’s companies will start promoting tips like keeping the conversation within the app for as long as possible (rather than switching to another messaging platform), setting up video dates, using photo verification, reporting interactions that peddle crypto or investment advice and staying vigilant as scams evolve.

Safety Measures are Likely to Boost Active Users on Tinder, Others

Such instances prompted companies like Match Group to take corrective measures, which are likely to boost user growth on its dating platforms.

In the Houston suburb of Spring, a 21-year-old man held a woman he met on Bumble (BMBL - Free Report) captive and tortured her for five days beginning Christmas Eve. The man is accused of starving and physically and sexually assaulting the woman.

Last year, a Carrollton woman was scammed out of $200,000 of cryptocurrency after meeting a man on Hinge.

Tinder’s monthly active users have remained relatively steady since 2019 compared to Bumble and Hinge where users have increased 87% and 140% in the same period, per Sensor Tower data.

In the third quarter of 2022, direct revenues from Tinder grew 6% from the prior-year quarter, driven by 7% Payers growth to 11.1 million. The introduction of Tinder Lite, which intends to expand its international presence, has been acting as a key catalyst. Tinder expanded its video in profile feature to more members globally. Videos within a Tinder profile allow members to express themselves better, discover more about others and find the right match.

Tinder has relaunched the Desk Mode, a feature that lets users swipe through Tinder from their desktop. The company surveyed 1,000 U.S. online daters between the ages of 18 and 30. Of those, 30% swiped during a meeting and 47% said that they would rather match and chat on company time. This is expected to boost active user growth in the near term.

Zacks Rank & Stocks to Consider

Currently, Match Group carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Expedia Group (EXPE - Free Report) and JD.com (JD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Expedia Group has lost 48.1% in the past year, compared with the Zacks Internet - Commerce industry’s decline of 38.1%.

JD.com has lost 17% in the past year, compared with the Zacks Internet Commerce industry’s decline of 38.1%.


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