Scanning scam (and other frauds)

Tech-savvy Katie Winston always looked for the newest apps. Recently, she had been using her smartphone to scan “Quick Response” or QR codes in magazines, on posters and just about everywhere. One day she checked her bank statement and found a strange unaccountable withdrawal and a zero balance in her account. She was another victim of the QR code clickjacking scam.

The case is fictional but the problem isn’t. The ubiquitous QR codes are becoming a gateway for fraud.

QR codes (sometimes also called “Quick Read”), which look like matrix barcodes (see image at left), are composed of digital black modules and square dots arranged in a square grid on a white background. You can use the built-in camera and QR code reader in your cellphone or smartphone to scan and decipher the code.

Denso Wave Inc., a subsidiary of Toyota, invented the QR code system as a scanning device in 1994 to track components during the manufacturing of its automobiles. (See p. 341 of “Handbook of Augmented Reality,” 2011, edited by Borko Furht, Springer.) Businesses throughout the world now use them to identity and track products and direct potential customers to their websites.

According to an article on the Scambusters website (“5 Ways to Avoid a QR Code Scam”) the codes are “popping up everywhere — not just on labels [and on buses, business cards, on flyers and posters] and in magazines but also, for example, on some tourist monuments, providing instant details on the site being visited.”  

A QR code on your business card allows associates to add your contact information to their phones. Businesses also use them to give directions to events and direct consumers to coupon sites.

Magazines and newspapers commonly use QR codes to help control their copy costs while still keeping the readers informed. For example, The Wall Street Journal used three codes in the main section of their September 13 edition: one that read, “Scan this code for continuing coverage of the Syrian crisis” and two to direct readers to “Scan a video ...” to learn more.

QR codes, compared to typical UPC barcodes, have more storage space for URL links, text and geo coordinates. For years, marketers have printed URLs on products to encourage consumers to visit sites. However, would-be customers have to write down the URLs and type them into their browsers on their phones or at home. No need to do that with QR codes.