Scanning for Scams: Preventing QR Code Fraud in Parking

The widespread adoption of QR codes, accelerated in 2020 by the COVID pandemic, has improved convenience for patrons looking to quickly pay for their parking and be on their way. This was particularly attractive to people looking to reduce their exposure to surfaces at the time, but also appealed to individuals who didn’t want to download a new app, or an app in a city that they don’t travel to often.

While all of these features aimed at improving convenience for patrons, the rise of QR code payments has also opened the door to fraud. In parking, organizations have experienced incidents of scammers replacing legitimate QR codes with fake ones, leading customers to fraudulent payment sites where their credit card information can be stolen and their transactions going to illegitimate actors. 

 

Traditional QR Code Fraud Prevention

While these incidents have resulted in less faith in the QR code payment method, there are several ways to improve their security while maintaining their convenience. Common security measures include:

  • Utilizing tamper-proof materials for printed QR codes.
  • Requiring cybersecurity training for staff.
  • Using reputable QR code generators.
  • Implementing customer education on fraud risks.

While helpful, these methods are often reactive. A more proactive approach is needed.

 

Smarter Fraud Prevention: Monitoring Transactions

Instead of solely securing QR codes, operators can track how parking transactions begin using BI data analytics tools like TEZLENZ and Microsoft Power BI. Most parking systems categorize transactions by:

By analyzing transaction patterns, operators can detect anomalies like sudden drops in QR transactions or unexpected geolocation activity, signaling possible fraud.

 

Prioritizing Secure Transactions

Encouraging text-to-park options over QR codes enhances security by:

  • Reducing fraud risks, as SMS transactions don’t rely on physical codes.
  • Enabling direct communication with customers.
  • Improving data insights for marketing and engagement.

Incentives, such as small discounts for SMS payments, can further drive adoption.

 

Emerging Technologies for Fraud Prevention

AI-driven analytics, dynamic QR codes, blockchain authentication, and geofencing can strengthen security by detecting anomalies and preventing tampering in real-time. By leveraging data-driven fraud detection and proactive monitoring, parking operators can stay ahead of scammers and ensure a safer, more secure digital payment experience.

TEZ has long been at the forefront of not only developing solutions with the highest level of security, but our team is experienced in understanding the risks associated with all of the latest parking technology trends and helping our clients maximize their security. TEZ’s TEZPARK solution enables users to park and conveniently pay with their phones while providing parking owners and operators with real-time data and enforcement tools.

Owners and operators may choose to utilize a wide range of payment options to effectively serve the preferences of their customers, and QR codes may continue to be one of those options. But having an understanding of the risks associated with these solutions, employing effective security measures, and diversifying payment options will go a long way toward reducing fraud associated with these innovative solutions.

For more information on how TEZ can help transform your operations with our leading-edge solutions suite, contact us today!