How to identify a fake ‘going out of business’ sale

Fake going out of business sale websites aren't quite this obvious but there are tell-tale signs you are on a website run by scammers - Image (c) ConsumerAffairs

Scammers are targeting bargain-hungry consumers

There has been no shortage of businesses closing their doors lately. So far in 2025, JoAnn Fabrics and Forever 21 have begun liquidation sales as they wind down operations.

As we have reported, scammers are taking advantage of this fact by launching fake websites designed to look like the retailers’ real sites. The problem got so bad for JoAnn customers that the retailer stopped taking online orders, requiring customers to go to a physical location to make a purchase.

We haven’t heard from Forever 21 on this subject, but consumers should expect to see some websites impersonating that company as well. Shopping online for any sale – especially a liquidation sale – requires extra vigilance. 

For starters, make sure the URL is legitimate. The website for JoAnn Fabrics is https://www.joann.com/. Consumers have reported landing on look-alike sites with URLs that have the name JoAnn in them but don’t have the right extension.

Forever 21 has announced sales of up to 60% off, but any deeper discounts should be viewed with skepticism. There have been reports of some fake going-out-of-business websites offering discounts of up to 80%.

Red flags to look for

To avoid fake going-out-of-business websites, consumer advocates offer this advice:

  • Verify the website URL

  • Go directly to the official website: Avoid clicking on social media ad links. Instead, type the website address directly into your browser.

  • Be wary of too-good-to-be-true offers

  • When making a purchase, using a credit card for better fraud protection

  • Be skeptical of websites that ask for excessive personal information, such as your Social Security number.

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