Huntington says, referring to internal sentiment at the company at the time. “It definitely wasn’t a positive reaction,” Mr. Encouraged by the easy sign-up process, scammers were piling in to grab the free phone number supplied by the app, which they then used for all manner of online schemes. But then the fake accounts came flooding in. It was becoming something of a viral hit, attracting thousands of legitimate users. Their app let users make calls and send texts for free while connected to WiFi. TextNow had been started two years earlier by Derek Ting and Jon Lerner, two computer engineering students at the University of Waterloo, as a way to get around what they saw as usurious Canadian wireless rates. It was 2011 and their Waterloo, Ont.-based startup was still small, with fewer than 10 employees. Tristan Huntington vividly remembers when he and the rest of his team at TextNow realized their free calling-and-texting app was being abused.
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