You see an online ad on social media for a JOANN “going-out-of-business” sale. You click on the ad, which takes you to a website that looks quite identical to the real JOANN website with the company’s real logo and images. There, you see that their merchandise is extremely discounted to 80-90% off. The products being sold are products that you are familiar with purchasing at JOANN, so the sale seems legitimate. As you start to add items to your cart, you may also be offered an additional promotional discount that brings prices down even more.
If you look more closely, you will notice that the website’s URL is not for the real JOANN website. Instead, you’re on a fake website created by a scammer who is trying to steal your personal or financial information.
BBB has received numerous reports on BBB Scam Tracker about these fake closeout sales. One person shared their experience, “We saw an ad for Joann Fabrics “bankruptcy” going-out-of-business sale, which led to a website (joann-us.com) advertising 80-90% off of various things. We selected a dozen items in a shopping cart and then noticed an additional “promotional discount” added. At that point, we noticed the website name was not Joann’s real website, compared the two online, and shut down the fake website without providing any information.”
Another person shared, “They duplicated the Joann website and products, then marked the prices way down to pennies on the dollar. I almost ordered until I saw a message “so-and-so just purchased” and I know the real Joann doesn’t do that.”
How to avoid fake “going out of business” sale scams
- Always confirm the website’s URL. Scammers love to build fake websites that look like the real thing. These fake websites can be very convincing, so take extra steps to confirm what website you are on. Often, the URL is either off by only a letter or two or it may add extra words that still look convincing. JOANN’s official website is joann.com.
- Instead of clicking on ad links, go directly to the official website. In addition to fake websites, scammers can create fake social media ads. Instead of clicking on ads for extremely discounted products, go to your web browser and visit the store’s official website on your own.
- Be wary of deals that sound too good to be true. These liquidation scams play on people’s desire to get a good deal. Even for a liquidation sale, if the price seems too good to be true, it probably is. Verify the source and the deal before making a purchase online.
- Use your credit card for online purchases. Credit cards offer additional fraud protection that debit cards don’t. If you accidentally purchase something from a fake website, your credit card company may allow you to contest the charge and get your money back.
- Be careful with what information is being asked of you. If you’re checking out when shopping online and are suddenly asked for additional personal information like your Social Security number, take that as a red flag for a scam.
For more information
Read BBB’s tips on how to avoid bogus “going out of business” sale scams and smart online shopping.
A similar scam targeted consumers when Bed Bath & Beyond declared bankruptcy.
If you’ve been the victim of an online shopping scam, share your experience at BBB Scam Tracker. Your report helps protect other consumers from falling victim to similar scams.
