Scamsters in Khajuraho, Madhya Pradesh, have recently targeted over a dozen shops by planting fake QR codes over legitimate ones, redirecting payments to their own accounts. The fraud was uncover when a customer noticed that the QR code at a medical store displayed the name ‘Chhotu Tiwari’ instead of the store’s name. The store owner later discovered, via CCTV footage, that three masked individuals had swapped the original QR code the previous night.
Other local shops and a nearby petrol pump were also target. One suspect has been arrested within 72 hours, but two more remain at large.
The Rise of QR Code Fraud in India
In FY 2024-25, India reported 18,167 cases of QR code-based fraud, amounting to Rs 22.22 crore, which is significantly lower than the previous year’s figures. However, QR code frauds have been on the rise, with 39,638 cases reported in FY 2023-24, totaling Rs 56.34 crore.
A new phishing variant, called “quishing,” has also emerged. This scam involves fake QR codes that lead victims to fraudulent websites to steal banking details.
Efforts to Combat QR Code Fraud
To combat these frauds, fintech platforms have strengthened security measures, including real-time fraud detection and two-factor authentication. The Reserve Bank of India (RBI) and other banks have been running awareness campaigns via radio, SMS, and other public channels. The RBI has also advised users to avoid scanning QR codes when receiving money, as these transactions do not require QR code scans.
Despite these measures, the psychological impact on victims can be severe, as many feel hopeless about recovering their lost funds.