Fake QR Codes Pose New Threat to UPI Users in India

New Delhi:

As UPI payments continue to replace cash across India, cybersecurity experts are flagging a new and rapidly spreading threat — fake QR codes designed to deceive users into handing over their money and personal data within seconds.

Unlike earlier scams that relied on suspicious calls or phishing messages, this fraud operates in plain sight. Fake QR codes are now being pasted at everyday locations such as local shops, petrol pumps, parking areas, roadside poles, ATMs and even electricity boards. In several cases, fraudsters simply place counterfeit QR stickers over genuine payment codes, making them almost impossible to spot at a glance.

Cybercrime investigators say this trend marks a shift from digital-only scams to hybrid physical-digital fraud, exploiting the trust people place in routine QR-based payments.

How the Fake QR Code Scam Works

When a user scans a counterfeit QR code, they are redirected to a fake payment page that closely resembles legitimate UPI apps. Victims are then prompted to enter sensitive information such as UPI PINs, OTPs or bank credentials. The moment these details are submitted, fraudsters gain access and drain the account almost instantly.

In more advanced cases, the QR code leads to a malicious link that silently installs spyware or malware on the phone. This allows criminals to monitor keystrokes, intercept messages and compromise banking applications long after the initial scan.

Experts note that poor financial controls and weak transaction monitoring — issues often highlighted during professional auditing services in India - significantly increase the damage caused by such attacks.

Why QR Code Fraud Is Rising Rapidly

India’s explosive adoption of UPI has created speed, convenience - and misplaced confidence. Many users scan codes without verifying ownership, especially in crowded or informal settings. Fraudsters exploit this behaviour by attaching misleading labels such as “Refund QR,” “Payment Confirmation,” or “Discount Activation.”

Authorities say scammers deliberately rely on urgency and familiarity, knowing most users do not expect fraud during routine, low-value transactions.

How to Identify a Fake QR Code

Cybersecurity professionals advise users to stop immediately if a QR scan redirects to an unfamiliar website or asks for information beyond payment confirmation. Genuine UPI apps never ask users to enter OTPs or PINs after scanning a code.

Physical warning signs also matter. Torn stickers, layered QR codes or codes pasted at unusual locations should raise suspicion. When in doubt, confirming with the merchant before scanning can prevent irreversible losses.

Steps to Protect Yourself from QR Code Fraud

• Use only official, updated UPI applications

• Avoid scanning QR codes pasted in public or unattended areas

• Never share OTPs, UPI PINs or banking details

• Cancel the transaction if redirected outside the payment app

• Report incidents immediately to your bank and cybercrime helpline

Maintaining clean transaction records and disciplined digital practices — similar to structured bookkeeping services in India - can significantly reduce financial exposure after such incidents.

Convenience Must Be Matched With Caution

UPI has transformed daily payments, but convenience cannot replace vigilance. A single careless scan can compromise not just money, but long-term personal data security.

As QR-based payments become more widespread, experts stress that awareness - not speed - will determine how safe India’s digital payment ecosystem remains.