If an opportunity presents itself, a scammer will come in and take it—even if it is painfully obvious. Scrolling on Facebook, Pinterest, and other social media networks, you might see a page advertising a sale from crafts retailer Joann Fabrics.
There’s just one problem: Joann Fabrics has filed for bankruptcy, is going out of business, and isn’t selling merchandise online anymore.
How are scammers impersonating Joann Fabrics?
The problem has gotten so bad that the Federal Trade Commission has issued a consumer warning about scammers impersonating the retailer, offering going-out-of-business sales.
According to the FTC’s consumer warning, scammers have created fraudulent websites offering 80%-90% discounts on merchandise from the beloved craft store.
The websites offer cheap deals on in-demand items, leaving unaware shoppers to purchase items that will never arrive.
The scammers then have the money the customer has paid, and the customer receives nothing at all.
How to avoid being taken advantage of by scammer sites
The FTC advises multiple strategies to avoid being taken advantage of by such fraudsters, including:
- Using credit cards instead of debit cards, because they can offer better consumer protections for purchases.
- Keep records of purchases made (helpful in the event that you don’t get what you paid for).
- If you’re looking for a sale, do some homework on how the sale is actually being offered. (For example, the sale is being offered exclusively in-store vs. online.)
What should I do if I see this scam?
It’s one thing to hear about an ongoing scam, and another to see it out in the wild.
The FTC recommends reporting the fake sale ad to the platform where it is being advertised, as reported by Mashable. This generally requires marking specific ads as spam within your personal feed.
What can I do if I fell for this scam?
Sometimes these scams look super convincing.
The Mashable report also advises any customers who have made purchases using these ads to contact their financial institutions to secure their accounts and see if they can halt the fraudulent charge.
Much of the time, banks will work to help recover funds lost through a scam, especially if the purchase was fraudulent in nature.
The likelihood of getting your money back may be based on the payment method used. Some banks are more forgiving when it comes to users authorizing purchases on fraudulent sites, while others might require that complainants reach out in a timely manner.
When it comes to wire transfers and payment apps like Venmo, a refund is less likely.
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