The Federal Trade Commission has raised a warning for consumers regarding the growing popularity of QR codes, which can be a potential risk if not approached with caution. It has been reported that these digital codes can be leveraged by malicious actors to steal personal information. In such cases, malicious codes can be linked to convincing-looking websites with the aim of perpetuating fraudulent activities.
Before you scan that QR code, you should take note of the risks. These digital jumbles of black and white squares, which often contain URLs, have become increasingly common, showing up on restaurant menus and in retail stores. The FTC warned consumers about these potential dangers on Thursday. eMarketer projected that 94 million U.S. consumers will be using smartphone QR scanners this year, a number that is predicted to grow to 102.6 million by 2026. The codes' versatility is a major factor for their popularity, according to Alvaro Puig, an FTC consumer education specialist. “Unfortunately, scammers hide harmful links in QR codes to steal personal information,” Puig said in a consumer alert.
This is why it's significant: According to a separate report from the FTC, identity thieves can access victims' personal information for malicious activity, such as raiding a bank account, charging a credit card, opening up a utility account, acquiring medical care under someone else's health insurance, or even filing a tax return in the victim's name to claim a refund. Moreover, the FTC described in a consumer alert how thieves are masking QR codes on parking meters or sending codes through text messages or emails to lure victims into scanning them.
Scammers often attempt to spark anxiety in their victims, such as suggesting a package cannot be delivered unless they reschedule, or that an account password must be changed due to suspicious activity, as a way to get them to scan a QR code which may access a malicious website. Puig says, “The QR code can take you to a clone site that seems reliable but is actually fake. If users sign in using this clone site, the scammers can easily access any information entered. The QR code could even download malware that steals user data without the victim realizing it.”
To protect yourself from scams, the FTC recommends inspecting URLs before clicking, double checking for misspellings and switched letters as they can indicate spoofing. Don't scan a QR code in a message you weren't expecting and be wary of ones that urge fast action. Protect your online and phone accounts by using strong passwords and multifactor authentication, as well as making sure your phone's OS is up to date. For more information, check out these stories from CNBC PRO which discuss Saudi Arabia's attempt to boost oil prices, where to invest $250,000 for the next 5 years, Citi's sentiment on a biotech stock, and the Wall Street fear gauge.
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