QR(Quick Response) is a scan and pay option which is used by shoppers for payment of bills. Even small vendors provide this payment option to their customers. Usage of QR code saves the users from entering beneficiary account details and provides faster settlement of transaction. For ease and convenience of users, all banking and E-wallet apps provide QR code reading software. Upon scan of QR code, the user enters the amount, authenticates payment by inputting password and the amount is transferred to the account of beneficiary. The users can generate QR code and send it to other party (payer) to scan and pay the amount mentioned therein.
About QR Code frauds:
1. While QR is used for scan and payment purposes, we come across incidents whereby fraudster mislead people to believe it as deposit confirmation. A few examples are:
• Fraudsters reach out to the sellers of goods on platform like OLX. They pretend as dealers of second hand goods and convince the seller to finalise the deal even without inspection of goods. To create confidence, fraudster initially transfer a small token amount in the account of seller and keep him engaged in conversation. For remaining payment, they send QR Code to the seller and convince that it is payment confirmation for the money deposited in seller’s account. Whereas QR is meant for collecting money and seller could end up in losing money from his account if he enters PW to authenticate it.
• Fraudster share QR Code through WhatsApp with people, asking the code to be scanned to get money in their account. Innocent people think that this would credit money in their account but what happens is actually opposite, scenarios like this makes people victim of Cyber-crime.
2. Fraudsters pose as sellers on sites like OLX, Quikr, and social media channels by posing as Army Officials, BSF, CISF, or impersonate any brand name. Then they ask buyers to pay in advance using the collect request or make a payment on the given QR code. Buyer unaware of the intentions of the seller makes the mistake of approving such collect requests.
3. Fraudsters create fake websites and offer some lucrative deals which attract the buyers and accept the payments through QR code
How to safeguard from QR code frauds?
• For receiving money in your account, no PIN is required. Fraudster try to confuse the user by sending QR code.
• Scan only those QR code which are fully trustworthy and you know where it originated from.
• Never approve collect requests from unknown beneficiaries.
• Never scan a random code just in curiosity to know what is there inside.
• Avoid using Public QR codes as cyber criminals may swap them by replacing their own QR codes over genuine ones to make money flow into their account.
• If you scan a code and find yourself on a web page that asks for personal information such as name, login credentials, address, etc., don’t key in the information.
If somebody asks you to scan the QR code to receive money, it is a fraud call. Do not believe.
Stay vigilant, Stay safe!