Beware of Fake Joann Going Out of Business Sales

If you’re a crafter, you might be trying to take advantage of the discounts that fabrics retailer Joann is offering as it goes out of business. Just make sure that scammers don’t take advantage of you as you look for deals.

Scammers have advertised deep discounts and set up copycat websites following the news that Joann is closing all of its stores, according to the Better Business Bureau. Here’s what to know about these fake “going out of  business” sales and how you can avoid these scams. 

How going out of business scams work

Scammers often use announcements that retailers are going out of business to trick shoppers with fake sales. Shortly after Joann announced that it had filed for bankruptcy and would be closing all of its stores, scammers started advertising “going out of business” sales for Joann online, according to BBB. 

If you click on the ads, you’ll be taken to a website that looks like the real Joann site, with items marked down as much as 80% to 90%. Then, you might be offered additional discounts on any items you add to your cart. 

On closer inspection, though, the address for the website isn’t the same as Joann’s official joann.com URL. For example, a consumer who clicked on an ad for a Joann sale ended up at joann-us.com, according to a report filed with BBB Scam Tracker. 

This scam works because the fake sites carefully mimic the layout and branding of the Joann site. Scammers prey on consumers' desires for a great deal, hoping to steal personal information, such as credit card details or login credentials.

How to avoid going out of business scams

These scams can be difficult to spot, but there are steps you can take to avoid falling victim to them:

Don’t click on ads on social media: If you see an ad on social media for a great deal, don’t click on it. Instead, go directly to the retailer’s official website to see if you can find the same deal.

Stick to retailers you trust: If you see an ad for a sale from a company you don’t recognize, do some research before purchasing. Search the name of the company and words such as “reviews,” “complaints” and “scam.”

Know when a deal is too good to be true: Although liquidation sales often offer big discounts, a product marked down by 80% to 90% should raise red flags. Verify the legitimacy of the sale before making any purchases.

Check the website’s URL: Scammers often make small changes to web addresses, such as swapping a letter or adding extra words. Make sure you’re on the official website, such as joann.com, before making any purchase. Also, ensure the site has a secure connection as indicated by "https://" and a lock icon in the address bar. 

Watch out for extended liquidation sales: Businesses can advertise liquidation sales only if they truly are going out of business, and they have a limited time period to offer such deals, according to BBB. If you see a business advertising “going out of business” or “total liquidation” sales for months, it could be a scam.

Compare prices: Even legitimate liquidation sales might not offer the best deals. Check other retailers to ensure the prices are genuinely discounted.

Don’t provide too much information: If you’re being asked when checking out online to provide sensitive information, such as your Social Security number, it’s a red flag of a scam.

Pay with a credit card for online purchases: Credit cards provide more fraud protections than debit cards. If you make a purchase on a fake website and don’t receive your goods, you can file a dispute with your credit card company to ask for your money back.

What to do if you’re a victim of a going out of business scam

If you receive an inferior product or nothing at all, contact the retailer first to ask for a refund. If you don’t have success resolving the issue with the merchant, contact your bank or credit card company to dispute the transaction.

Report the scam to the Federal Trade Commission and BBB Scam Tracker. And keep an eye on your accounts for unusual transactions. The scammers might use the card information you provided to make fraudulent transactions. Using a service such as Carefull, which provides 24/7 account, credit and identity monitoring, can help you stay alert to unauthorized transactions and misuse of your personal information.

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