QR code frauds in India reach ₹56 cr in losses in 2023-24

QR code frauds in India rose sharply to nearly 40,000 cases in 2023-24, with losses reaching ₹56.34 crore. By September 2024, more than 18,000 cases involving ₹22.22 crore had already been recorded.

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The number of QR code-based fraud cases in India has doubled over the past two years, rising to 39,638 in 2023-24, amid a broader surge in digital financial frauds driven by increasing digital payment transactions. 

The finance ministry informed the Lok Sabha that the monetary losses from QR code frauds nearly tripled during the same period, reaching ₹ 56.34 crore. As of September FY25, 18,167 cases of QR code fraud have been reported, involving losses amounting to ₹22.22 crore.

To combat payment-related frauds, including those involving QR codes, the government, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI) have introduced various measures. These include:

• Device Binding: Linking the customer’s mobile number to a specific device.
• Two-Factor Authentication: Requiring a PIN for transaction authorization.
• Daily Transaction Limits: Setting caps to reduce risk exposure.
• Curbs on Use Cases: Restricting high-risk scenarios.

Additionally, the NPCI has launched awareness campaigns emphasizing that “QR codes are scanned only to make payments, not to receive them.”

A Quick Response (QR) code is a two-dimensional (2D) barcode featuring black squares arranged in a grid on a white background. These codes can be read and interpreted using imaging devices like smartphone cameras. Invented in 1994 by Denso Wave, a subsidiary of Toyota, the QR code was originally developed to streamline the manufacturing process by tracking vehicles and their components.

QR code payments are used for a variety of purposes, including retail purchases, bill payments, peer-to-peer transfers, donations to charitable organizations, access to public transportation, and facilitating contactless transactions across industries such as hospitality and healthcare. Digital payments in India continue to surge, with a year-on-year (YoY) transactional volume growth of 42% in FY 2023–24, which is poised to grow by three times in FY 2028–29.