QR Code Scams: What You Need to Know About This Emerging Threat

You've probably noticed QR codes popping up everywhere, but did you know they can also pose security risks?

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Many who enjoy the convenience of QR codes are now facing a new challenge: the rise of QR code scams. Hackers are exploiting these codes to steal personal information, turning a helpful tool into a potential threat and a new avenue for financial crime. In this blog, we'll explore how QR codes work and offer tips to protect yourself.

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What Are QR Codes?

A Quick Response (QR) code is a two-dimensional barcode made up of black and white squares. It's designed to be scanned by a smartphone camera to store information like URLs or contact details. QR codes have become incredibly handy, especially with the rise of touchless transactions during the pandemic.

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Are QR Codes Even Popular?

You'll find QR codes everywhere—from restaurant menus to payment systems and marketing campaigns. They're especially popular in Asia, with China, India, and Vietnam leading the way. The scans worldwide reached 26.95 million in 2023, a 433% increase over two years. As they become more widespread, these codes might even replace traditional barcodes.

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What Can You Do with QR Codes?

Most of the time, QR codes link you to a website, but they can do much more. They can launch apps, download files, make payments, send pre-written text messages, and even share financial information. This versatility makes them appealing to businesses—and they're free to use.

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However, this same appeal attracts scammers who exploit the trust users place in them. A recent survey by QR TIGER revealed that many people are unaware of QR codes' capabilities:

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The Evolution of Scam: From Phishing to QR Code Scams (Quishing)

Fraudsters have quickly adopted QR codes because many users need help understanding them. This shows how scams evolve with new technology. As QR code scams become more common, it's important for users to learn how to spot and avoid them.

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In traditional phishing, we've spent years teaching people how to avoid scams, and email providers use tools to detect harmful emails. As a result, 69% of people can identify bad URLs. However, only 39% can spot malicious QR codes. This gap highlights the need for more awareness and education about this technology’s security.

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The High Risk of QR Code Scams in Crypto

QR codes aren't harmful by themselves, but they can be used in scams. In September, a fake Tesla YouTube channel with 35,000 subscribers used a deepfake of "Elon Musk" to promise viewers they could "double" their Bitcoin, Ethereum, Dogecoin, and ERC20 USDT. A QR code on the screen encouraged users to scan it and link their wallets, with promises of doubled returns.

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Spotting these scams can be tricky. First, check if the YouTube channel is real and if the person is genuine or a deepfake. When scanning a QR code, be aware of what you're doing:

• Are you downloading an app?
• Are you linking your crypto wallet?

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Many people need help understanding wallet management, and connecting it can give scammers access to your cryptocurrencies. Once they have access, they can empty your wallet, and since crypto transactions can't be reversed, you could lose everything.

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Where to Expect Malicious QR Code Scams

QR code scams can appear in many places, making them quite dangerous. They often come through email, traditional mail, or as fake stickers over real QR codes.

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In emails, you might see scams as fake invoices, delivery issues, or payment problems. In traditional mail, they could be disguised as car insurance quotes, utility bills, or package delivery notices. Scammers also place fake QR code stickers over real ones at restaurants, parking meters, and airports.

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How to Spot QR Code Scams: A Practical Checklist

While QR codes might be challenging to spot a bad one just by looking at it, you can take some simple steps to stay safe. Here’s a checklist to help you identify QR code scams:

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1. Look for Tampering: Check if the QR code looks like it’s been tampered with. If you see one QR code placed over another, it might be a sign of a scam.
2. Assess the Need: Consider whether the QR code is needed or expected. If it seems odd or unnecessary, don’t scan it. Instead, reach out to the company to make sure it’s legitimate.
3. Confirm Payment Requests: Be wary of QR codes asking you to pay a bill or invoice without clear billing details. Always contact the person or company requesting payment to verify and ask for other payment options to avoid scams.

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Take Action Against QR Code Scams with Unit21

With the rise in QR code scams and financial fraud, staying proactive is crucial. Unit21 offers tools such as transaction monitoring, easy case management, and a fraud consortium to protect your business and enjoy peace of mind!

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Visit our website to see how our solutions can protect your financial operations. Also, you can watch our session for more details here, and you can check out our 3rd Annual State of Fraud and AML Report for valuable insights!

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