Is your QR Code Safe? The New Threat You Need to Know About

• QR code scams, or “quishing,” trick users into scanning fake codes that redirect to malicious websites.
• Indicators of a fake QR code include poor quality, unusual placements, and suspicious surroundings in public areas.
• To stay safe, verify the source, check the URL, and use security tools before scanning. Businesses can reduce fraud by using encrypted QR codes and educating customers.

As digital fraud grows, QR codes have become a new target for cybercriminals, often leading unsuspecting victims into harmful traps. Referred to as “quishing,” these scams trick individuals into scanning fake QR codes that redirect them to fraudulent websites or malicious software intended to steal personal data.

How QR Code Scams Work

QR code scams are often harder to detect compared to traditional cybercrimes, as users cannot see the link’s destination before scanning the code. Victims unknowingly scan the code, only to realise the malicious intent once it’s too late. While phishing and smishing scams are more widely recognised, QR code scams are relatively new and now account for over 20% of all online frauds, making them an increasingly common and dangerous threat.

Red Flags: How to Identify Fake QR Codes

Look for visible signs of tampering, such as stickers covering the original QR code or codes that are broken or partially obscured. Poor quality or blurry codes can also indicate a potential scam. Context is key—if the QR code appears in an unusual place or is paired with urgent, high-pressure messages like “Scan now to avoid fees,” it’s likely a red flag for fraud.

The Importance of AI and Machine Learning in Detecting Fraud

AI and machine learning play a crucial role in identifying and preventing financial fraud, especially when scanning QR codes. Financial institutions use these technologies to detect suspicious activities and unauthorised transactions, providing customers with robust protection against scams. If a victim falls prey to a QR code scam, their bank’s advanced fraud detection systems can identify unusual behaviour and secure their finances. However, it’s still essential for users to protect their devices and stay vigilant when scanning QR codes.

How to Protect Yourself from QR Code Scams

To stay safe when scanning QR codes, always verify the source first. Ask yourself: Is the code linked to an official website or a trusted business? Does it appear tampered with or suspicious?

After confirming the source, carefully check the URL to ensure it leads to a legitimate and secure website. Tools like VirusTotal can help identify potential threats. If the code directs you to a payment gateway, verify the site’s legitimacy by checking domain registration details. Avoid websites with newly registered domains or those that seem questionable.

Businesses’ Role in Consumer Protection

While personal precautions are vital, businesses play a key role in educating customers and reducing the risks of QR code scams. A report titled Navigating Big Retail’s Digital Shift: The New Payments Strategy Evolution highlights that 25% of US retailers and 28% of UK merchants plan to introduce QR payments within the next three years. This shift aligns with growing consumer demand for QR codes in omnichannel shopping, with over 80% of merchants recognising their potential to enhance customer loyalty by offering product-level information.

However, businesses should avoid relying solely on QR codes for payment processing due to the associated risks. QR codes often lack sufficient tamper resistance, making it challenging to monitor them effectively. To reduce vulnerability, companies should offer multiple payment options, allowing customers to select safer alternatives.

Enhancing QR Code Security for Businesses and Consumers

To bolster QR code security, businesses should consider adopting more sophisticated, encrypted codes, such as Cronto’s colour-based QR codes. These codes are designed to be readable only by the intended device, providing an added layer of protection. Financial institutions, in particular, could benefit from integrating such technology to offer tamper-resistant and secure payment options, helping safeguard consumers against fraud.

The Rise of Quishing: A More Advanced Scam

As cyber threats evolve, QR codes have emerged as a surprising tool in the hands of cybercriminals. Once a simple means for accessing information or making payments, QR codes are now being exploited by scammers to steal personal data.

Quishing—combining “QR code” with “phishing”—is a new form of scam where cybercriminals use social engineering tactics to trick victims into clicking malicious links or installing malware. While it shares similarities with traditional phishing, the use of QR codes introduces an added layer of sophistication, allowing scammers to bypass security measures more easily.

The Bait: How Scammers Lure Victims

Scammers craft convincing scenarios to entice victims into scanning QR codes. These might come in the form of seemingly legitimate emails or text messages offering discounts, fake payment requests, or even innocent-looking social media posts. Once scanned, the QR code directs the victim to a malicious website designed to steal sensitive information, such as login credentials, credit card details, or bank account numbers. With this stolen data, fraudsters can commit identity theft, financial fraud, or other malicious acts.

The Increasing Risk of QR Code Scams

Recent surveys show that QR code scams are on the rise, now making up over 20% of all online fraud. This alarming trend highlights the need for greater awareness and vigilance from both individuals and businesses.

How to Protect Yourself from Quishing Attacks

To avoid quishing, always approach QR codes with caution. Be sceptical of any code, especially if it comes from an unexpected source or offers something that seems too good to be true. Verify the sender’s authenticity through a trusted communication channel. Use a reliable QR code scanner app that can check codes for potential threats before you scan them. Be particularly cautious with QR codes found in public places, such as restaurant menus or ads; only scan those from trusted sources. Keep your devices updated with the latest security software to safeguard against vulnerabilities. Lastly, stay informed about the latest scams and security best practices to reduce risks.

What Businesses Can Do to Avoid QR Code Scams

Businesses play a key role in protecting customers from QR code scams. They should ensure that all QR codes used in marketing materials, payment systems, and customer-facing applications are thoroughly validated. Robust security protocols must be implemented to protect consumer data during QR code transactions. Additionally, businesses should train employees to recognize and report suspicious activity. Ongoing monitoring for emerging threats and staying updated on the latest cybersecurity trends are essential to safeguarding customers from potential scams.

Securing the Future of QR Codes

QR codes hold great potential to revolutionise our digital interactions, but they also present significant security risks. By staying informed about scammers’ tactics and taking proactive measures to protect ourselves, we can mitigate the dangers of QR code scams and enjoy the benefits of this technology securely.