How to spot a fake going-out-of-business sale

When a retailer declares bankruptcy or announces the closure of store locations, scammers waste no time setting up fake going-out-of-business and liquidation websites.

BBB receives numerous reports to BBB Scam Tracker about fake closeout sales for businesses that declared bankruptcy or announced they are closing store locations (and some that haven’t). These businesses include Bed Bath and Beyond, JOANN, Rite Aid, JCPenney and At Home.

What are the common signs of a fake going-out-of-business sale?

—The sale is advertised to you through online ads or on social media.

—The website has blurry or distorted images and logos, and the URL doesn’t match the business’ real web address. For example, the URL may include the business' name but add the words "closing" or "sale" at the end.

—The merchandise is extremely discounted, sometimes up to 90% off, with additional discounts being added when checking out.

—Your tracking number tells you the items are being shipped from overseas, even if the business is based in North America.

—You never receive your merchandise. The “retailer” may claim the items were shipped, or they may tell you the items could not be delivered.

—If you do receive your merchandise, the items may be of poor quality and not what you thought you ordered.

—You are unable to receive a refund, and/or you are unable to contact the retailer.

Tips for avoiding going-out-of-business sale 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 which 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.

—Go directly to the official website. In addition to fake websites, scammers can create fake social media ads. Instead of clicking on ads or other links for extremely discounted products, go to your web browser and visit the store’s official website.

—Is that deal 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. Be wary and verify the source and the deal before making a purchase online.

—Use your credit card for online purchases. Credit cards can offer additional fraud protection. 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 you provide. 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.

—Trust your instincts if things don't seem right. If something feels off when you're online shopping, whether it's the website, the discounted prices or the checkout process, take a moment to stop and investigate further. Using caution is always better than taking a chance on a good deal.