All You Need to Know About QR Code Scam

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

All You Need to Know About QR Code Scam

What is a QR code scam? – Cyber Insurance

In today’s digital world, you can manage your entire day with just your phone in your hands. Be it work, entertainment or even banking, everything can be done with this overly smart smartphone. Apart from mobile and internet banking, another no-fuss way to transact is through the QR code. Easy, time-saving and convenient, using the QR code to pay or receive money has greatly overshadowed plastic cards, leave alone cash payments. But sadly, it isn’t really ‘picture-perfect’.

With the growing popularity of QR codes, scamsters have come up with various ingenious ways to trick users. There has been a steady increase in cases reporting QR code scams, where people were duped. They were promised that they would receive some money, but later they realised that money was deducted from their account through the QR code.

Staying alert and investing in a cyber security insurance policy are things that you can do to save yourself from these digital perils. Read on as we discuss the growing menace of QR code frauds, what they are and what you can do to spot the red flags.

What is a QR Code Scam?

For a QR code scam to work, a fraudster will convince you that they are sending you some amount of money. All you will have to do is scan a code. What most people forget or be aware of is that a QR code can be used to send money, not receive it. When you scan the code, enter the amount you wish to receive and the OTP; instead of receiving anything, the money gets detected from your account!

A number of QR code scam cases have also come to light where people have accidentally shared their banking and personal details. When you share your QR code with someone, extracting your details becomes very easy.

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 would 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.

How can you spot QR code scams?

QR codes are being used in many ways, making it easier for scammers to make you a natural target. Here are some red flags that scream “ALERT”.

1. The payment site has a poor design, bad grammar and a strange URL.

2. The address contains spelling errors.

3. The QR code has been tampered with or is covered up.

4. The QR code has been put in an unusual place.

5. The code has come with an email that offers a too-good-to-be-true deal.

6. Code on delivery packages that tempt you to scan the code for cashback or rewards, or free gifts.

7. QR codes that you receive on social media should be dealt with cautiously.

8. When you download an app through a QR code, and it asks you for too many permissions

9. If a downloaded app asks you to get an update as soon as you download it.

How to Stay Safe from QR Code Scams?

Here are some simple yet effective tricks and tips you need to follow to stay safe from all kinds of QR code fraud:

1. Use the app store to download an app, and not a QR code.

2. If you have to receive some money, do not share your QR code, especially with strangers.

3. Even if you are sending money to someone, make sure you cross-check the details.

4. If the QR code scanner seems to have a sticker on top, avoid scanning it.

5. Do NOT share your OTP with anyone.

6. As long as possible, do not share your phone number with strangers, especially if it is your registered mobile with your bank.

7. Most smartphones have an in-built scanner. You need not download an app to make a payment.

8. Invest in suitable insurance. There are many options for cyber insurance for working professionals, choose one today.

Conclusion

Quick Response codes that are better known as QR codes are black and white squares that we now find just about everywhere. They became common during the lockdown that demanded contactless transactions. Their popularity ever since has only risen. However, it also gave endless supplies of victims to scamsters.

From individuals to large-scale QR code scams are making headlines. While staying alert is imperative, investing in cyber insurance for family can also work in your favour. Make sure you and your family members stay safe and do not scan a scam.

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

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