Rita is a "reporter" for The Daily Prophet (a.k.a. the paper of choice for all things wizardly). But those scare quotes are important, because she's more about sensation and gossip than actual reporting.
For example, when she interviews Harry, she asks super dramatic and leading questions, and ignores basic factual details like Harry's real age:
RITA: So, tell me, Harry. Here you sit, a mere boy of twelve…
HARRY: I'm fourteen.
RITA: About to compete against three students not only vastly more emotionally mature than yourself, but who have mastered spells that you wouldn't attempt in your dizziest daydreams. Concerned?
HARRY: I-I-I don't know. I haven't really thought about it.
RITA: Just ignore the quill. Then, of course, you're no ordinary boy of twelve, are you?
RITA: Your story's legend. Do you think it was the trauma of your past that made you so keen to enter such a dangerous tournament?
HARRY: Uh, no, I didn't enter.
RITA: Of course you didn't. Everyone loves a rebel, Harry. Scratch that last. Speaking of your parents, were they alive, how do you think they'd feel? Proud? Or concerned that your attitude shows, at best, a pathological need for attention, at worst, a psychotic death wish?
HARRY [looking at the magical quill that's taking notes for Rita]: Hey, my eyes aren't "glistening with the ghosts of my past."
So, yeah, she's more focused on sensationalizing everything than facts or the truth. As you might imagine, the story that results from he interview is pretty much pure fiction. And then when she catches Harry hugging Hermione? That's great fodder for creating a fauxmance to drum up interest (in fairness, though, Hollywood celebs do this all the time—looking at you, Tom Hiddleston and Taylor Swift).