Wisconsin BBB scam alert; fake 'going out of business' sale

MILWAUKEE - Wisconsin Better Business Bureau (BBB) says with the news that retailer JOANN Fabrics declared bankruptcy and announced the closure of all physical store locations, scammers are wasting no time setting up fake going out of business and liquidation websites.

How the scam works

What we know:

A news release from BBB says 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.

How to avoid fake these 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

What you can do:

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.