This research presented a digital watermarking scheme using multi-level authentication for protecting QR code images in order to provide security and authenticity. This research focuses on the improved digital watermarking scheme for QR code security that can protect the confidentiality of the information stored in QR code images from the public. Information modification, malicious attack, and copyright violation may occur due to weak security and disclosure pattern of QR code. Digital watermarking can be a solution to reduce QR code imitation and increase QR code security and authenticity. The objectives of this research are to provide QR code image authentication and security, tamper localization, and recovery scheme on QR code images. This research proposed digital watermarking for QR code images based on multi-level authentication with Least Significant Bit (LSB) and SHA-256 hash function. The embedding and extracting watermark utilized region of Interest (ROI) and Region of Non-Interest (RONI) in the spatial domain for improving the depth and width of QR code application in the anti-counterfeiting field. The experiments tested the reversibility and robustness of the proposed scheme after a tempered watermarked QR code image. The experimental results show that the proposed scheme provides multi-level security, withstands tampered attacks and it provided high imperceptibility of QR code image.