October 29, 2024Fraud Alert: QR Code Scams
Many technological advancements are designed to simplify your life, providing an added layer of convenience to your everyday tasks. However, with new technology also comes the threat of exploitation by scammers. Unfortunately, this trend has stepped into the world of QR codes – stripping away protections once enjoyed by consumers.
QR codes are commonly used to share information quickly and easily with a simple snap of your phone’s camera. As businesses increasingly rely on this tool to communicate with their customers, criminals are stepping in to abuse these scenarios for their own gain.
In this article, we’ll highlight common QR code scams and reveal ways to protect yourself from potential fraud.
What Are QR Codes?
QR codes, or Quick Response codes, are a popular way to share and receive information instantly. The codes are comprised of multiple small squares on a white background. These small squares are typically black to resemble a barcode but arranged in a square formation. The square code can then be scanned by the camera in your mobile device, and you will be instantly redirected to a website designated by the embedded data within the code.
While QR codes were originally created decades ago for inventory purposes, they stepped into the mainstream years ago and peaked during the COVID-19 pandemic. Restaurants especially used these tools to eliminate physical menus. Now, you see these codes in every advertisement – from postcards and signage to TV commercials and social media posts.
These codes are commonly used to direct end-users to a specific URL but can also carry information such as:
- Email or Phone Contact Information
- Locations & Directions
- Event Details
- Social Media Pages
- Images & Videos
- And more
The incredible ease of scanning a code with your phone and being sent directly to a specific page or snippet of information drives QR code popularity among businesses and consumers alike.
How QR Code Scams Work
There are numerous legitimate reasons for using QR codes, but as with anything worthwhile, scammers take advantage of the opportunity to use something good for evil instead.
Creating QR codes is simple – so simple that fraudsters can make them in an instant. These fraudulent codes are then used to trick people into visiting a malicious website or downloading malware onto their devices. It’s another form of phishing scam.
Here are some examples of scammed QR codes that you may encounter:
- Official QR codes on parking meters may be covered by a fake one – so instead of paying for your parking fare, you’re sending money to the scammer.
- You may be sent a QR code via email claiming to be from a delivery service regarding a package.
- Fraudulent social media ads may appear in your feed with QR codes that direct you to a website designed to steal your information, install malware on your device, or lure you into purchasing a fake product that doesn’t exist.
The challenge with QR code scams is that they can be extremely difficult to identify until you scan the code.
Tips to Spot & Avoid QR Code Scams
The technology to create free, customized QR codes is widely available and accessible to anyone, which makes QR code scams easy to pull off but difficult to identify.
Before scanning a QR code, follow these tips to help make sure it’s legitimate:
- Inspect Carefully: Scammers may take a legitimate QR code and use tricky tactics to manipulate the code. Look for any signs that the code has been tampered with, including misspellings on text, altered logos, unusual coloring, or distorted shapes in the code.
- Beware of Unsolicited Codes: Refrain from scanning any unexpected codes received via email or postcard. Avoid interacting with codes or communication from unknown senders.
- Ignore Urgent Requests: Fraudsters often pose as official representatives of a legitimate company or government agency to intimidate you into complying with their nefarious requests. Ignore any communication that includes threats if you don’t act urgently. If you are unsure if the request is fraudulent or not, contact the company or agency directly to verify if they tried to contact you.
Protections Stripped Away
One of the greatest defenses against phishing scams via email or social media is the ability to identify the links before you click them. On your computer, you can hover over the link to determine if the URL is legitimate or fake.
However, these protections are stripped away by QR codes. Unfortunately, you do not know where the QR links until you scan it. This feature, designed to make QR codes so simple and easy to use, also creates one of the most significant vulnerabilities.
While it might seem counterintuitive to send a QR code via email – how do you scan a QR code with your mobile phone’s camera if you’re viewing the email on your mobile phone? If you’re on a computer, you can still use your phone to scan the code. However, there are apps available now that will read digital QR codes on your phone’s screen and allow you to click them.
Always use caution when scanning a QR code from an unsolicited sender. If you’re out and about in town, look for stickers placed over legitimate QR codes and refrain from scanning random codes placed on streetlights, benches, etc.
What to Do If You’ve Been Scammed
Follow these steps if you think you have been compromised by QR code scams:
- Notify Your Financial Institutions: Immediately report any suspected fraud regarding your financial accounts to PEFCU or other financial institutions. Please include any relevant details, including dates, monetary amounts, and any contact information available.
- Inform the Company: If you were contacted under the guise of the communication appearing to be from a reputable company you do business with, contact the company to let them know that scammers are impersonating them to target customers.
- File a Report: You can file a fraud report with the Federal Trade Commission at reportfraud.ftc.gov. Then, contact your local police station to file an official police report about the crime. These steps will assist your financial institution(s) in recovering funds and protecting your credit score.
We’re Here to Help!
As technology continues to evolve, it’s essential to stay vigilant against advancements in fraud practices, including QR code scams. By knowing how these scams function and their warning signs, you can protect yourself from falling victim to fraudsters.
If you suspect you were targeted by a scam or have been a victim of fraud, please contact us immediately. Financial security is our top priority, and we are here to assist you through any concerns or issues you may encounter. Please stop by any branch location or call 800-226-6673 to speak with a Member Advocate today.
Each individual’s financial situation is unique and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.