QR Code Scams: Types, Examples & Protection Tips

Posted on: Aug 4, 2023 | 3 mins | Written by: HDFC ERGO Team

QR Code Scams: Types, Examples & Protection Tips

The use of QR (Quick Response) codes is becoming more and more common, and unfortunately, so is the scammers’ use of them. Phishing through QR codes could result in identity theft, loss of money, and contracting of viruses and malware. QR codes are rather useful, but previously they have turned into a new favourite of swindlers. Everything from getting lost in a website filled with phishing frauds and fake websites to computer diseases such as viruses and other financial risks that are allied with those squares. From this article, you can learn how to avoid the QR code scam, how to protect your family with cyber insurance, and how careful you should be with the digital world.

What is a QR Code Scam?

It is quite surprising to notice how QR codes became a part of our daily lives, after being so popular as a new trend in the year 2020. But with their rise comes a darker side: QR code scams. These are actually fake links that normally appear to be genuine links that would take you to another web page, attempt to steal your personal information from your device, or even instil a virus in your device.

Scammers incorporate them in different strategies, for example, fake coupons, and mislead users about the login credentials of public Wi-Fi. It is recommended to use QR codes that are seen in day-to-day life or those that contain familiar content. Before scanning, one should always ensure that the scan code is legitimate and it is advisable to use a QR code scanner that has added security measures. The best strategy to counter these future digital threats is to be on the lookout.

How do QR Code Scams Work?

Recently, QR codes have been used more and more, but they also can be used for negative intentions. Phony links can be developed, which, when scanned, will take the consumer to a phishing site or install a virus on the individual’s device.

Here's how QR code scams work

1. The scammer proceeds to make a QR code that leads to a specific website that one cannot trust. Although this website appears to be a genuine website, it is also created to mislead you and steal your identity, suppose your login details or credit card number.

2. The scammer creates a QR code and fixes it in a public place such as a bus stop or a shopping mall. They may also send the QR code to you via email or text message. Then, there are the forms that appeal to the partnership of the two parties, in this case through text and an image of the QR code.

3. Normally, you use a smartphone and scan the QR code printed on the receipt. As a result, on your browser, the malicious website is opened for interaction.

4. This is information that you input when accessing the website in the account created with your details. After that, this information is presented to the scammer.

Common Types of QR Code Scams

As they are extremely convenient, QR codes are just about everywhere. From your greengrocer to your favourite restaurant, just about everyone is using these codes. This makes it easier for the scammers to reach their goal, which is to bring you to a place where they can steal your money, your data, or both!

Here are some very common types of QR code fraud:

1. QR code phishing scams:

Cybercriminals will send you a letter, a brochure, or an email that will contain a QR code. When you scan it, you’ll be asked to fill in your personal details. Once you fill them out, the information will go straight to the attacker, who can access your accounts as and when they want.

2. Stranger in Need QR scan fraud:

Here, someone will approach you with a crafty story, requesting you to transfer some money to them through the QR code they show you. When you scan the code, you give the scammer access to your banking account.

3. Online marketplace QR code scam:

Someone might get in touch with you saying they wish to buy something from you. They ask you to scan a code and may even transfer a small amount of ‘token money’ to get your bank details.

4. QR code viruses:

In many scenarios, only by scanning a QR code, you are inviting malware to cause damage. Fraudsters can embed links to web portals that contain viruses and, thus, easily compromise your data.

5. QR payment fraud:

A very common type of QR code fraud is payment fraud. Here, cybercriminals tamper with the QR codes at places where a large number of transactions are made, for example, a petrol station or a restaurant. They will cover up the legitimate code and use it to fill up their own pockets.

Warning Signs of a QR Code Scam

QR codes are everywhere, but they can also be a get-through for cybercriminals. Be wary of QR codes that:

1. Avoid scanning codes on flyers, stickers, or signs in unfamiliar places.

2. The website address should be recognisable and trustworthy.

3. Legitimate QR codes rarely ask for sensitive data.

4. A poorly designed code is a red flag.

Real-life examples of QR Code Scams

It is almost impossible to live without seeing QR codes in our daily lives, but they also bring with them a new way for scammers.

Here are some real-life examples of QR code scams:

1. Fake invoices

They send invoices with a QR code, and when the customer clicks on them, he or she ends up on a fake page where he or she pays online. When the victim then scans the code, he or she gets transferred to what appears to be an actual website, only for the person’s payment information to be stolen.

2. Malicious websites

Phishers develop a website with a QR code to have unsuspecting users scan the code and lead them to compromised websites. Once the victim QR codes the provided code, they land on a bad website which can harm the device or even steal identity.

3. Phishing emails

Fraudsters send emails with a link that disguises itself as a legitimate company logo and leads users to a fake login page. When the victim scans the code, they are transferred to a site which swallows the login details.

How to Protect Yourself from QR Code Scams?

1. Always be careful to only scan QR codes that you get from legitimate websites. If you have any doubts as to who it was that placed the code, do not pat the QR codes on the head.

2. One should also be wary of QR codes that are placed in public areas. These codes could have been manipulated in a way that, instead of leading you to an authentic website, takes you to a suspicious one.

3. This should be an app that has an inbuilt security service to scan the QR codes. These apps will assist you in identifying unsafe QR codes and steering clear of them.

4. If you are doubtful about the safety of scanning any QR code that is placed in the public domain, then do not attempt to scan it. It is better to be safe than repent later.

Just remember if you are unfortunate enough to have fallen for a QR code scam, you should then report the matter to your bank or credit card firm. You should also inform the authorities about the scam to which you have fallen victim.

Cyber Insurance

Cyber scams are real, and hence, it is advised that everyone buy a cyber insurance policy so that they can be covered in the event of being a victim online. This type of insurance can cover expenses such as

1. Identity theft with theft resolution

2. Legal fees

3. Lost wages

4. Medical expenses

Protection of the web-based assets is mandatory, and being insured is a necessity for all those people who work on the internet. It can give assurance and assist in getting over the aftermath of an attack.

Cyber Insurance for Family

Cyber insurance is no longer the mere domain of organisations, associations, and large corporations. It is also possible to speak about the ability of families to use this type of protection. Specifically, while obtaining family cyber insurance, everyone in the family can be insured, including the kids.

This coverage can help protect you from the risks associated with online activities such as

1. Social media scams

2. Phishing scams

3. Malware infections

4. Identity theft

What to Do if You Fall Victim to a QR Code Scam?

If you do become a victim, though, it is very important to act quickly. Here's how..

1. First of all, reset all the passwords of the accounts that have been opened with the help of the given malicious QR code. This will go along with methods to assist in safeguarding the accounts and putting a halt to more incidents of hacking.

2. Also, it is necessary to inform the bank if the individual has experienced any identity theft involving financial data. They can help you know the measures you can take to protect yourself and your money and avoid any scams.

3. In addition to this, it is necessary to file a complaint with the relevant authorities and the specific company which has associated the QR code with the said scam. Thus, you help prevent similar scams in the future and punish the offenders for deceitful actions.

To tackle the fear of scams rising in the future, having the option of cyber insurance seems wise. This form of cyber insurance for families affords coverage to individuals and families, as well as other forms of coverage, which include data and identity theft and cybercrime coverage. It reduces the load of recovery and protects your digital life.

FAQ's

1. What are QR code scams?

QR code scams take you to malicious websites or make you download harmful apps.

2. How does QR code scams work?

Legitimate QR codes are replaced by scammers with their own QRs which redirect you to fake websites or malicious apps.

3. Where do QR code scams occur?

Public places like restaurants, restrooms, and advertisements often harbour these scams.

Conclusion

QR codes are backed with comfort, but fraudsters also use them. Find the signs of a QR code scam and prevent yourself and your family from falling to the tricks. Cyber insurance is another means that may be recommended for further protection. It can be used to subsidise loss incidence from cyber incidents including from QR code scams.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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