What fraud detection tells you
Fraud detection for QR codes means spotting scans, redemptions, and codes that are not genuine: bots, copied coupons, sticker overlays, and abuse of single-use offers. It protects revenue and keeps your numbers honest.Fraud rules trade false positives against missed fraud. Tune them, and always leave a path for a wrongly blocked person to get help.
How to compute fraud detection
Flag rate = scans flagged by fraud rules divided by total scans, multiplied by 100. Confirmed fraud rate uses only flags confirmed on review.Illustrative example numbers, not real-world data: 25 of 400 scans are flagged by rules, giving 25 / 400 x 100 = 6.25% flagged. If review confirms 10 as genuine abuse, the confirmed rate is 10 / 400 x 100 = 2.5%. The gap between flagged and confirmed is why review matters.
How to collect the data
Log every scan with time, code, and destination, set rules for impossible patterns such as bursts from one source, and review flags before blocking anyone.Keep the raw counts, not just the final percentage. Raw counts let you recompute the metric if you later fix the definition, and they make it possible to spot a denominator problem, such as a week where exposures were estimated instead of counted. Store the counts in one place with the date range, the placements included, and the name of the person who pulled them. That small discipline turns a spreadsheet into an audit trail.
Reading the result
Never judge fraud detection as a single number. Break it down by code, placement, time, and rule triggered. A campaign that looks average overall may be strong in one segment and weak in another, and the fix is completely different in each case. Compare the same placement against its own past, and compare different placements only when their audiences and contexts are genuinely similar. A short trend over four or more comparable periods is worth far more than a single snapshot, because it separates a real shift from weekly noise.Also check the relationship between fraud detection and the metrics around it. If scans rise while conversions fall, the new scanners may be less interested visitors, or the landing page may have changed. If cost rises while fraud detection stays flat, you are paying more for the same outcome. Metrics make sense in groups, not in isolation, and the habit of reading two or three together prevents most misreadings.
