Initiating a device security setting on detection of conditions indicating a fraudulent capture of a machine-readable code

Abstract

There are provided systems and methods for initiating a device security setting on detection of conditions indicating a fraudulent capture of a machine-readable code. A service provider, such as an electronic transaction processor for digital transactions, may provide in-person or device-to-device data transfers through machine-readable codes, such as to effectuate a payment from one mobile device to another. However, unauthorized devices may be in close enough proximity to also capture the code and impermissibly use the code. Thus, device security settings are used to detect whether fraud may occur in certain settings and implement an operation to hide a valid code. This may include operations to obtain information for the unauthorized device, make the code dynamic, or mask the code in a display. Once a nearby valid scanner is detected, such as through emitted light or sound, the valid code may be displayed.