Beware of Fake Going-Out-of-Business Deals for Joann Fabric Stores

When fabric and craft retailer Joann Inc. announced in February that it was going out of business after nearly 80 years, sewers and hobbyists rightly expected to find bargains galore. They likely didn’t expect that their yearning for discounted yarn, sewing machines, fabric and other supplies would expose them to a flood of scams.

Criminals have capitalized on the demise of the popular Ohio-based chain, which until recently had 850 stores around the country, by luring deal seekers to fake Joann websites in schemes so sophisticated that some victims who’ve purchased through the sites have received phony confirmation emails, receipts and tracking numbers. The scammers’ advertisements are equally deceptive and include slick ads on social media and realistic marketing emails bearing the Joann logo, the company’s corporate address and other legitimate-looking features.

How big is this shopping scam? The Better Business Bureau (BBB) has issued a warning and noted that it received more than 280 complaints about the scheme through the end of April. The Federal Trade Commission (FTC) followed suit in May, issuing a consumer alert about online Joann impersonators. Joann has posted a prominent notice at the top of its website informing consumers of impostor sites and reminding them that it no longer sells merchandise online (as of March 6, the company began selling its inventory only at its dwindling number of brick-and-mortar locations).

Many victims of Joann impostor scams are sharing their stories and seeking help through the free AARP Fraud Watch Network Helpline. One woman told a helpline volunteer she’d ordered $50 worth of merchandise online after seeing what appeared to be a Joann advertisement on Facebook. Weeks later, the products still hadn’t arrived. She suspects she ordered through a sham website. Another consumer ordered a sewing machine, then realized the site was likely fake after scrutinizing it more closely. He contacted the real Joann company, which had no record of the order. (Not surprisingly, he still has not received his sewing machine.)

Melanie McGovern, director of public relations and social media for the International Association of Better Business Bureaus Inc., says criminals have two primary goals: to steal your money through fraudulent purchases and to steal your personal information, including your credit card number.

How to avoid Joann and similar going-out-of-business scams

Check URLs. Fraudulent sites will likely incorporate the legitimate company’s name in the link. Joann’s site is joann.com. Anything else is a fraud. And don’t forget: The company is no longer selling merchandise online, only at its stores. It offers some information on its shutdown at joannrestructuring.com.