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| By Sean Brodrick |
Hacker scum try to steal our information all the time. You probably take care to avoid phishing emails.
Heck, every employer I know is working hard to stop hackers. That’s because cybercrime is booming!
Fighting cyber-attacks will cost companies worldwide an estimated $10.5 trillion annually by 2025, up from $3 trillion in 2015.
Well, guess what? It just got worse. Not just for big companies. Also, for you … and me!
3 Examples of How They’re Gonna Get Ya!
Let’s say you go out to eat at a restaurant, and they’ve replaced their old menus with a QR code at the table. So, you scan it with your phone. You got hacked!
Or you park in a city. To pay for parking, you scan a QR code to download an app. You got hacked!
You receive an email from Microsoft. There’s an update to one of your Microsoft programs. And to keep using it, you have to scan a QR code with your phone to prove you are you. So, you scan the QR code. And you got hacked!
All three of these hypotheticals share a QR code. And they were all used for “quishing.” That’s the newest form of phishing.
Phishing is when hackers send fraudulent emails that not-so-innocently ask you to reveal personal information, such as passwords and credit card numbers.
QR Code phishing, or quishing, is the next step.
According to the Federal Bureau of Investigation, hackers tamper with digital and physical QR codes, replacing legitimate codes with malicious ones.
Hackers are using these fraudulent QR codes on stickers, junk mail, online ads and phishing emails in hopes of catching people off guard.
When Crime Is Too Easy
And it’s easy.
A hacker has lunch at a restaurant and slaps their own version of the menu QR code over the original at the restaurant.
Sure, the altered QR code will still show you the menu — but it will steal your data at the same time.
A hacker doesn’t even have to pay for lunch. He can just walk around town, putting fake QR code labels over those on parking meters. He can hack dozens — or hundreds — of people a day.
As for that “Microsoft” email — that’s another popular way for hackers to use quishing to get vulnerable user data.
That’s because Microsoft can use QR codes as part of its two-factor authentication process.
Fake Microsoft two-factor authentication accounts for fully half of all quishing attacks.
Want to hear some scary facts? Probably not. Well, I’m going to tell you anyway.
- We’re all vulnerable — 44.6% of internet users and 84% of mobile phone users have scanned a QR code at least once. Between 2022 and 2025, the number of consumers in the United States who scan QR codes with their smartphones is predicted to increase by 16 million.
- Hundreds of thousands of QR codes are generated in the U.S. every year. The use of QR code labels is growing at a compound annual growth rate (CAGR) of 8.9% a year. So, that’s more opportunities for hackers.
- Lots of businesses accept payments through QR codes. After all, it’s easy and fast and eliminates the need for physical cash or credit cards. Globally, the QR code payment market is growing at a CAGR of 17.03% through 2028.
These are the kind of stats behind the surge in quishing that we’re seeing now. The latest data is through May …
Well, that’s not good. So, things are bad. And they’re getting worse.
That’s the bad news. The good news is you can take steps to protect yourself and your data.
Tips to Protect Yourself
- Preview the code’s URL as you scan it to ensure it’s the intended site. A malicious URL may be similar to the intended URL but will include typos or a misplaced letter.
- Don’t download an app from a QR code. Use your phone’s app store for a safer download.
- Refrain from scanning a QR code received by email or junk mail.
- Avoid making payments through a QR code. Instead, manually enter the trusted URL to complete payment.
Use caution, and you’ll lower (but not eliminate) your risk of being hacked, phished or quished.
How to Invest
I’m very bullish on the cybersecurity market. The growth of cybersecurity depends on who you ask, but a commonly cited forecast is a CAGR of 14.3% from 2024 to 2032.
That is tremendously bullish for select ETFs and companies.
One example would be the Amplify Cybersecurity ETF (HACK). It holds a basket of leading cybersecurity stocks.
HACK has a Weiss rating of “C,” a dividend yield of 0.18% and an expense ratio of 0.60%.
You can see the fund ripped higher last year. And it has spent this year consolidating sideways.
With cybercrime on the rise, more money is going to pour into the companies in HACK.
I think it should break out soon, and my six-month target is 35% higher.
Also, one final note. Remember what Michael Robinson said yesterday. AI is another way to “fight fire with fire” in cybercrime.
As both trends — cybercrime and AI — continue to explode higher, it pays to know the companies set to benefit most.
That’s why Michael has been on the hunt for “The Next Nvidia.”
Well, he’s just found it. Check out this groundbreaking presentation.
All the best,
Sean
P.S. I’ll be talking about my favorite stocks to ride the new tech supercycle when I speak at the New Orleans Investment Conference, which takes place Nov. 20 to 23.
This is the 50th anniversary of the NOIC, one of the best financial conferences around.
Speakers will offer their insight on precious metals … minding stocks … crypto … the economy, and more.
And you’ll get my hottest tech stocks, too! You should check it out by CLICKING HERE.
