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Image: FTC

The Federal Trade Commission found that more online dating scams happened in 2020 than ever before, thanks to people flocking to dating apps in the wake of the pandemic. 

The FTC released a new report in February citing the disturbing news, noting that dating app scams are the most lucrative for criminals because they provide an easy way to access and manipulate targets. Scammers are able to create an emotional connection with their victims when they target them on dating apps, and are better able to keep extracting money. The total amount of stolen funds on dating apps in 2020 was estimated to be $304 million, or about $2,500 per victim. This was double the amount stolen from dating app users in 2019, according to Insider.

Dating App Jigsaw Raised Funding

Image: Jigsaw

Dating app Jigsaw has raised $3.7 million in funding after its launch in the U.S., positioning it to be a contender in the industry, according to Tech Crunch. The company is backed by angel investors in the UK and the US.

Jigsaw differentiates itself from other dating apps by slowing down the process for users to accept or reject a match. Sixteen jigsaw puzzle pieces hide a user’s face in their profile photo, with only one small piece revealed as a tease. Over time as a user interacts, the photo emerges as the puzzle pieces disappear, two at a time. After a certain number of interactions, the whole photo is revealed. 

Utah House Committee

The Judiciary Committee in the Utah House of Representatives just passed a bill that would allow people to search the legal records of anyone they meet online, providing new safety measures for online daters.

The bill would allow Utah residents to have easier access to a service called Xchange, which provides information from Utah’s public court system, according to The Daily Universe, the paper published by Brigham Young University. Right now, broad access is limited, but if the bill is passed, residents can opt to pay a monthly fee to use it and get relevant history and information on potential dates.

Online dating company eHarmony launched an ad campaign highlighting LGBTQ dating on its app, and has received backlash from some on the conservative right, according to a report by NBC News.

The company has roots in the Christian community and has been viewed as unwelcoming to the LGBTQ community. To move past this perception, executives invested in a rebranding campaign that highlights inclusivity. The company launched its first inclusive ad featuring a lesbian couple this winter.

The ad entitled “I Scream” is part of the “Real Love” campaign, and shows the couple in their kitchen making dinner, then deciding it’s not very good and opting for ice cream on the couch. “Being honest with each other,” the voiceover says. “Saying yes to great ideas. eHarmony — here for real love.”

Match Group is expanding its portfolio with the acquisition of Hyperconnect, a popular South Korean social media company. Match Group purchased the company for $1.7 billion in stock and cash, according to an announcement made by the companies.

Match Group CFO Gary Swindler said in an interview with CNBC that the move to acquire Hyperconnect positions Match Group for further growth, as social discovery apps are a new way for people to connect beyond dating apps. Virtual connections have been in increasing demand since the start of the pandemic, with people isolated in their homes and feeling disconnected. Social discovery apps have been hugely popular and are expected to grow at a faster rate than dating apps, particularly in Asian markets, according to Swindler. 

Match Group shared its fourth quarter earnings this week, offering investors some cautious optimism on what to expect in 2021. 

Last year the company saw record highs in new users and activity, but faced with economic recessions and a global pandemic, revenue growth remained uncertain. The company delivered slightly better than expected results for the last quarter of 2020, with revenue of $651.4 million for the quarter, up from $547.2 million. Analysts had been projecting $649 million according to Market Watch. Match Group also reported net income of $140.6 million, up from $94.7 million this time last year.