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U.S. Senators Press Tinder Parent Match to Address Dating Scams

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Two U.S. senators urged Match Group, the parent company of Tinder, to step up its fight against romance scams across its dating platforms. In a letter sent Wednesday to CEO Spencer Rascoff, Democratic Senator Maggie Hassan and Republican Senator Marsha Blackburn requested details on Match’s policies and safeguards against fraudulent activity.

Romance scams typically involve fraudsters creating convincing but fake profiles to lure victims into prolonged interactions before soliciting money or gifts. The senators expressed concern that Match’s platform design and algorithms may unintentionally foster trust that scammers exploit.

According to the FBI, cybercrime caused victims more than $16 billion in global losses last year, with romance scams alone responsible for hundreds of millions of dollars.

Hassan and Blackburn gave Match until October 15 to provide documents showing its prevention measures and an explanation of how scams persist on its apps, which also include Hinge and OkCupid.

In response, Match said it welcomed “constructive conversations” with lawmakers. Yoel Roth, the company’s Trust & Safety chief, said Match has invested heavily in advanced fraud detection systems, user safety features, and partnerships with law enforcement and industry groups.

Match has faced regulatory scrutiny before. In 2019, the Federal Trade Commission accused the company of sending fake “interest” notifications from accounts it knew were fraudulent on Match.com. The Department of Justice later closed its probe in 2020.

To combat impersonation, Match has introduced tools like “face check” to verify profiles and reduce the spread of fake accounts.

Bumble shares drop as AI revamp fails to reverse paying user decline

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Bumble’s stock tumbled 17% on Thursday after the dating app operator posted another quarterly drop in paying users, raising doubts about its AI-driven turnaround plan and long-term growth outlook.

The company revealed that total paying users fell 8.7% year-on-year to 3.8 million in Q2, despite efforts to enhance match quality and connect users with similar engagement levels and intentions.

In contrast, rival Hinge — owned by Match Group — has been outperforming thanks to its broader international presence and more competitive AI tools, which provide personalized matches and boost engagement. Analysts note that Hinge’s emphasis on authentic profiles and creative prompts has helped sustain stronger user retention rates.

Bumble is still in the early stages of its strategy to improve user experience, introducing AI-powered features to bolster trust and safety. However, analysts warn that the tighter verification measures could slow user and payer growth in the short term.

Citi analysts noted that visibility into future user and payer trends remains low, and that increased marketing and R&D spending could put pressure on margins into 2026.

Shares of the Austin-based company are down over 6% this year, currently trading at 7.96 times projected earnings for the next 12 months, compared with Match Group’s 14.64.

Match Group Beats Q2 Revenue Estimates, Pushes AI to Attract Gen Z Users

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Match Group (MTCH.O), the parent company of Tinder, reported second-quarter revenue of $864 million, surpassing Wall Street estimates of $853.6 million, driven by strong performance from Hinge and a renewed AI-focused strategy under CEO Spencer Rascoff. Shares rose about 10% in extended trading on Tuesday.

The company attributed the revenue beat to an ongoing overhaul emphasizing user experience improvements, including the integration of an AI-powered core discovery algorithm designed to attract and retain users. M Science analyst Chandler Willison noted early benefits from Match Group’s AI initiatives, highlighting enhancements in recommendations and user interactions.

Despite revenue growth, paying users declined 5% to 14.1 million, reflecting sector-wide challenges in online dating. Peers like Bumble (BMBL.O) have also seen sluggish demand due to inflation and perceived innovation gaps, leading some consumers to pull back from app-based dating.

In response, Match and Bumble are prioritizing user experience by introducing AI-enabled discovery features to improve dating outcomes. Match Group aims to revamp Tinder’s brand as a “low-pressure, serendipitous experience” tailored for Gen Z.

Beyond Tinder, Match also owns Hinge and OkCupid, rolling out AI-driven interactive matching products targeting younger audiences. The company plans to reinvest around $50 million in H2 2025 for strategic initiatives, including product testing on Tinder and geographic expansion of Hinge, Azar, and The League.

For Q3, Match projects revenue between $910 million and $920 million, above estimates of $890.3 million.