Since the cryptocurrency craze of late 2017 when the value of a Bitcoin peaked at $20,000 per coin, what seemed like a promising new movement has bred much disillusionment in those who have hopped on board.
Value volatility has been one issue. Another that has surfaced is that the most common cryptocurrency Bitcoin is not as anonymous as it was made out to be, and those that are run a high risk of loss in transactions. In addition to issues arising from the nature of cryptocurrency, scams have skyrocketed, with over $1 billion in estimated losses in just the past year. One of the most widespread scams is the fake QR code scam.
In order to transfer cryptocurrency between two users and avoid lengthy coding, a QR code can be generated for the transaction that contains the recipient’s payment address. The sender scans the QR code with their cryptocurrency wallet app and makes the transfer. There are reputable sites that generate these QR codes, but cryptocurrency wallet experts at ZenGo reported that when you Google Bitcoin QR Code Generator, and similar search terms, four of the top five sites are scams.
The scam is fairly simple, and in many ways similar to a phishing scam. Instead of embedding the recipient’s payment address in the QR code, the scammer embeds their own payment address and the cryptocurrency is transferred to them. The way to detect a scam address embedded in a QR code is to scan it with the wallet app before sending money, and verifying that the address is correct. Look carefully, because often the address is personalized to resemble the legitimate recipient payment address, like in a phishing scam.
Scammers are able to continue to operate without getting caught because they can change their websites and addresses before too many victims amass and report.
Protecting yourself from this cryptocurrency scam is fairly simple. First, when generating a QR code to make a transaction, don’t Google it. Four times out of five, it’s a scam. Instead, use tried-and-true QR code generating sites, and make sure the URL is correct and not just another imposter site. Second, always scan the QR code before making the transaction to verify it is the right address.
