The U.S. model and magazine editor, 25, and Kennedy, 31, have been posting photos of themselves together on social media and attending the same public events.
UsMagazine.com said Kennedy lives in Los Angeles and Scruggs in Dallas, but they frequently travel to see each other.
"They're cute," an insider told the celebrity news website. "They keep it super PG (the movie rating). They don't even stay in the same hotels or places when they visit each other. It is like courting -- high school love."
The LOLO magazine editor made headlines in December 2011 when she accidentally walked into an airplane's propeller, losing her left eye and left hand.