Beware of QR code scams: SBI explains how to avoid online transaction fraud
QR code fraud has become increasingly common in recent days with the rise in online transactions, as more and more people stay back at home and conduct financial transactions through internet-based mediums, in view of the coronavirus disease (Covid-19) pandemic.
India's largest public sector bank, the State Bank of India (SBI), on Wednesday warned customers of the increasingly frequent QR code fraud, which may rob unaware users of their hard-earned money due to a negligent error. SBI took to its official Twitter account to post a guide with the purpose of making its customers more well-informed about QR code fraud. "Do not scan QR codes shared by anyone unless the objective is to pay," the bank wrote, asking users to "stay alert".
QR code fraud has become increasingly common in recent days with the rise in online transactions, as more and more people stay back at home and conduct financial transactions through internet-based mediums. The coronavirus disease (Covid-19) pandemic has also meant that fewer people physically visit banks and stand in queues to withdraw money at ATMs.
The two-and-a-half-minute video posted from SBI's official Twitter account on Wednesday explains the basics of such QR code fraud. Here's a primer:
How does QR code fraud take place?
Suppose a user 'A' wants to sell his dinner table online through one of the many internet-based marketplaces for buying and selling goods and services. Let us also assume that another user 'B' contacts 'A' after finding the dinner table online and after a series of negotiations, they agree upon a price. Now, 'B' promises to pay the settled amount and for this purpose, sends 'A' the QR code, which, he says, will let him pay the amount to A's bank account.
That's it, that's the scam. If 'A' goes on to scan the QR code, unaware that a person doesn't actually need to scan any codes while receiving an amount, he would be committing a grave mistake and likely end up losing money instead.
How to avoid QR code fraud?
A few simple things need to be kept in mind for one to avoid A's fate. One must remember that scanning a QR code is always done for making payments, and never for receiving. SBI makes this very clear in its explainer video, where the bank advises that customers hang their phones up when receiving such requests.
"Please understand, accepting a collect request of this sort or scanning a QR for receiving payment will always result in money getting debited from your account, on every single occasion. So, do not do that on any circumstance whatsoever while receiving money," the guide explains.
