It was meant to be a dating website exclusively for the use of "beautiful men and women", where members ruthlessly selected and excluded those who did not match their definitions of good looks.

But last month when BeautifulPeople.com was attacked by a computer virus, some claim standards slipped and around 30,000 new members gained admittance. Now, in a move which has made those rejected "apoplectic" with rage, they have been unceremoniously booted off at a financial cost of more than $100,000 (£62,000) to the site's operators.

The virus was quickly named Shrek – after the animated film about how looks should not matter – as it attacked the software used to screen potential members. A helpline has now been set up with counsellors on hand to help the distressed rejects from the site.

"We have to stick to our founding principles of only accepting beautiful people – that's what our members have paid for," said Greg Hodge, managing director of BeautifulPeople.com. "We can't just sweep 30,000 ugly people under the carpet."

Hodge reckoned the Shrek virus – which may have been posted by a disgruntled former employee – had affected the software that existing members use to rate prospective new entrants, allowing anyone to join. The website boasts that "beauty lies in the eyes of the voter" who are able to rank aspiring members on a type of traffic light scale where red is "absolutely not" and bright green is "beautiful". The site posts applicants' photographs alongside information about their weight and height and ask candidates to describe their "body type" as well as whether they own a car or home along with their zodiac sign.

"We got suspicious when tens of thousands of new members were accepted over a six-week period, many of whom were no oil painting," Hodge told the Guardian.

The brutal axing of the 30,000 hopefuls is not the site's first brush with controversy. Last year, about 5,000 members were removed from the site after they had appeared to put on weight during the Christmas period.

This month, the website triggered anger in Ireland when it said that Irish men were among the ugliest in the world. This was based on the reasoning that only 9% of male Irish applicants to the site were accepted. Only 20% of Irish women are accepted, compared with nearly 70% of Swedish women who sign up.

The prospects are even worse for British men, as according to Hodge, they are the most likely be rejected. "It's a bit of a sting as I'm a Brit," said Hodge, who is based at the site's head office in Los Angeles. On average one in seven people are rejected from the site which has around 700,000 members in 190 countries.

He said Norwegian women and Swedish men have the greatest chance of being accepted into the club, while Brazilian and Danish men are also popular – along with women from Sweden and Iceland.

Conceding that the latest set back was a "very embarrassing day", Hodge said he felt "very sorry" for the "unfortunate people who were wrongly admitted to the site and believed, albeit for a short time, that they were beautiful".

He attempted to placate the rejects. "I sent them all a very carefully worded email, trying to be as sensitive as possibly," he said. "But naturally many of them are finding it a bit of a sting to have been rated beautiful by their peers only to lose the accolade overnight." The company has paid out $112,500 in refunds to 4,500 of the 30,000 who had paid $25 a month for membership of the site. The others were still on a free trial period.

Hodge said the site, which started life in Denmark in 2002, was investigating the origins of the virus but said it appeared to have been planted by a disgruntled member of staff.

"At first it looked like one of the 5.5 million BeautifulPeople rejects planted the virus, but further investigations point towards a former employee planting the virus like an evil Easter egg last month," he said.

Rachel Godfrey, a 31-year-old Australian nanny living in LA, said she received an email telling her she was rejected two weeks after being accepted. "I was getting on really well with this American guy and we were going to go on a date and then they said I'd been chucked off and they locked me out of the site," she said. "Now I can't get in touch with him."

Godfrey said she is planning to have a makeover and professional photo shoot before reapplying to the website. "What if he's the one? This is only way I'll be able to get in touch with him," she said. "If that doesn't work I'll see what I can do with Photoshop."