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Joann Warns Customers of Online Scams Amid Store Closures and Liquidation
Joann, the beloved fabric and craft retailer facing widespread store closures, has issued a stark warning to its customers about the proliferation of online scams preying on shoppers eager to take advantage of going-out-of-business sales. The company is urging customers to exercise extreme caution and shop exclusively in physical stores during the liquidation process, as fraudulent websites have emerged, mimicking the legitimate Joann online presence to deceive unsuspecting consumers.
In a recent announcement shared on Instagram, Joann explicitly stated, "Due to the demand, we are NOT accepting orders online." The post further cautioned, "Beware of fraudulent websites." This announcement underscores the severity of the situation, as scammers exploit the uncertainty surrounding the retailer’s future and the heightened demand for discounted merchandise. The company’s explicit disavowal of online orders is a clear message that any website claiming to sell Joann products online is likely a scam.
The warning comes on the heels of Joann’s announcement earlier this month that it would be closing a significant portion of its retail locations. While initial reports indicated that approximately 500 of its 800 stores nationwide would be shuttered, the situation has evolved rapidly following the company’s second Chapter 11 bankruptcy filing within a year. The company subsequently auctioned off its remaining assets, with retail liquidator GA Group and Joann’s term lenders ultimately winning the bidding process.
The closure of Joann’s online store, Joann.com, occurred on March 5th, as explicitly stated in a notice to customers. The company directed customers to visit their local stores for all crafting needs. The company also cautioned that inventory would vary by location.
The absence of a legitimate online purchasing option has created a void that scammers are eager to fill. Numerous fake websites have surfaced, meticulously designed to replicate the look and feel of the official Joann website. These fraudulent sites often feature tempting discounts and deals, luring customers in with the promise of significant savings on fabrics, crafts, and other supplies.
However, the seemingly irresistible prices are a major red flag. As one customer alleged, the fraudulent websites "look EXACTLY like the original" and even send order confirmation emails to further legitimize the scam. However, the end result is identity theft and financial losses for the consumer.
The Better Business Bureau (BBB) has received numerous reports of these phony websites, with the BBB tracker alerting over 200 fraudulent websites. These complaints highlight the scale and sophistication of the scams targeting Joann customers.
The BBB offers advice that can help consumers avoid these scams. It recommended that consumers use a credit card for purchases, not providing sensitive information, and verifying the stores URL.
Joann has also faced criticism in recent weeks regarding its decision to discontinue the acceptance of gift cards during the liquidation sales. Multiple customers voiced their disappointment and frustration on Joann’s Instagram post about fraudulent websites, questioning the fairness of the policy change. Many customers were frustrated with this decision. For many, the gift cards represented legitimate currency that was now rendered unusable in the face of the company’s financial woes.
The situation underscores the vulnerability of consumers during times of economic uncertainty and retail upheaval. Scammers often capitalize on confusion and desperation, preying on individuals seeking bargains or attempting to fulfill unmet needs. In this case, the closure of Joann’s online store and the allure of liquidation sales have created a perfect storm for online fraud.
To protect themselves from becoming victims of these scams, Joann customers are urged to exercise extreme vigilance and adhere to the following precautions:
- Shop In-Person Only: Heed Joann’s warning and limit purchases to physical stores. Avoid clicking on links or visiting websites that claim to offer Joann products online.
- Verify Website Authenticity: If you are unsure about the legitimacy of a website, carefully scrutinize the URL. Look for subtle misspellings, unusual domain extensions, or other inconsistencies that may indicate a fraudulent site.
- Be Wary of Unusually Low Prices: If a deal seems too good to be true, it probably is. Scammers often use exceptionally low prices to entice customers and lure them into providing personal or financial information.
- Protect Personal Information: Never provide sensitive information, such as your Social Security number, bank account details, or credit card numbers, unless you are absolutely certain that the website is legitimate and secure.
- Monitor Bank and Credit Card Statements: Regularly review your bank and credit card statements for any unauthorized transactions. Report any suspicious activity to your financial institution immediately.
- Report Scams: If you believe you have been the victim of an online scam, report it to the Federal Trade Commission (FTC) and the Better Business Bureau (BBB). Reporting scams can help authorities track down perpetrators and prevent others from falling victim to similar schemes.
- Use Credit Cards: When making purchases online, use a credit card instead of a debit card. Credit cards offer greater protection against fraud, as you can dispute unauthorized charges and potentially recover your funds.
- Look for Secure Websites: Make sure any website where you enter personal or financial information has "https" in the URL and a padlock icon in the address bar. This indicates that the site is using encryption to protect your data.
The situation surrounding Joann’s store closures and the proliferation of online scams serves as a cautionary tale for consumers. By staying informed, exercising caution, and taking proactive steps to protect their personal and financial information, shoppers can minimize their risk of falling victim to these fraudulent schemes. The ultimate message from Joann is clear: shop in person, be vigilant, and be skeptical of online offers that seem too good to be true. The craft community is a supportive one, and protecting its members from fraud is of utmost importance during this period of transition.
