Is That QR Code an Entry Point to Stealing Your Data?

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QR codes have become a widely embraced tool in marketing, sales, payment and customer service for numerous businesses. With their increasing prevalence, malicious actors have discovered means to exploit QR codes for phishing attacks and the dissemination of malware.

These vulnerabilities can result in considerable financial and reputational harm, underscoring the importance for businesses to recognize and proactively mitigate these risks.

What are QR Codes?

A Quick Response (QR) code is a two-dimensional matrix barcode that stores information in black squares arranged on a white square grid. Originally developed for tracking automotive parts, QR codes have evolved into a versatile tool widely used in various industries. These codes can store a range of data, including text, URLs, contact information or other forms of alphanumeric data. The ubiquity of smartphones equipped with QR code readers has further propelled their popularity, allowing users to easily scan and access information encoded within the matrix. QR codes find applications in marketing, product labeling, ticketing and numerous other fields, serving as a convenient bridge between physical and digital realms.

The Risks of QR Codes

QR codes present inherent risks due to their potential exploitation by malicious actors. As a bridge between the physical and digital realms, QR codes can become vectors for phishing attacks and malware dissemination. Cybercriminals may craft deceptive QR codes to redirect users to malicious websites, compromising sensitive information or installing malware on their devices. Since legitimate QR codes appear as a random scramble of pixels within a larger square, it can be difficult for users to differentiate between the safe and malicious ones. Additionally, the widespread use of QR codes in payment transactions and to access URLs increases the likelihood of encountering fraudulent codes. Businesses and individuals must be vigilant, as the vulnerabilities in QR codes can lead to financial losses, data breaches and reputational damage if not properly addressed and secured. Implementing robust security measures and promoting awareness are essential safeguards in mitigating the cybersecurity risks associated with QR codes.

The Effects of Fraudulent QR Codes

Examples of how cybercriminals can exploit QR codes include:

• Replacing or tampering with QR codes—Malicious actors may place their counterfeit QR code over a legitimate one or alter a legitimate one.
  
  
• Placing QR codes in high-traffic areas or in strategic locations—Cybercriminals may place QR codes in high-traffic areas or near places where it might seem connected to a location or object (e.g., on a parking meter). Curious passersby or those thinking the QR codes serve a safe function (e.g., paying for parking) may then scan the malicious code.
  
  
• Sending fraudulent QR codes in an email or through an app—Malicious actors may include a QR code in digital communication with language accompanying it to make the code seem legitimate.

Once the fraudulent QR code is scanned, a user may be vulnerable to various security issues, including:

• Quishing—This is a form of phishing where the cybercriminal seeks to steal an individual’s credentials, passwords or other personal data after a user accesses the website through the malicious QR code. The cybercriminal may use social engineering techniques in order to trick a user into thinking the website is legitimate and, therefore, safe to enter their sensitive information.
  
  
• QRLjacking—This involves a cybercriminal spreading malware to an individual’s devices after a fraudulent QR code directs the user to a malicious URL.
  
  
• Device hacking—Under certain circumstances, a malicious actor may be able to access a user’s device if they scan a fraudulent QR code. The hacker then may be able to place a call, send a text or make a payment from the compromised device.

Mitigating the Risks of QR Codes

As cybercriminals increase their use of QR codes, it is essential for businesses to mitigate the risks associated with them. Strategies include the following:

• Provide continuous education to employees on the latest cyberthreats and dangers connected to QR codes. Carefully examine QR codes to ensure they were not tampered with or altered before scanning them.
  
  
• Be cautious when scanning QR codes and double-check the web addresses of the sites they direct to.
  
  
• Install security software with content filtering that inspects links and attachments and blocks access to suspicious items. Maintain strict access controls to limit damage from malicious actors if they obtain login credentials.
  
  
• Utilize multifactor authentication systems to add a layer of protection to business systems in case employee passwords or credentials have been compromised.
  
  
• Advise employees not to scan QR codes if they are unsure of their origin. Keep all devices updated and patched.
  
  
• Disable automatic QR code scanning on devices.
  
  
• Review default settings and permissions regarding the sharing of sensitive information.
  
  
• Train employees on how to safely use their technology in a bring-your-own-device environment.
  
  
• Reduce the use of QR codes in electronic business communications to disincentivize cybercriminals from using them to target customers.

Businesses wishing to use QR codes can also take steps to protect their customers. Techniques to consider include:

• Using a reputable QR code generator.
  
  
• Customizing the QR code to include the company’s branding.
  
  
• Testing the QR code before distributing it.
  
  
• Ensuring the linked website is strongly encrypted and has visible indications of SSL protection.

How Can Alliant Help?

QR codes provide a useful function, but they can also serve as an entry point for malicious individuals to steal credentials, insert harmful software and compromise the security of an organization and its customers. This can lead to significant financial losses and reputational damage. By implementing risk reduction strategies, companies can protect their business, employees and clients.

Alliant Cyber is ready to engage with your organization today, to assist you in identifying and realizing your cyber risk management objectives. Our multi-disciplinary team accomplishes this through our accelerated model of engagement, prioritization and targeted results. Reach out today to begin your journey toward optimized insurability outcomes, enabled by Alliant Cyber.