Beware of Going-Out-of-Business Sales: How to Shop Smart and Avoid Scams

When you see prominent ads with phrases like “Going Out of Business Sale,” “Total Liquidation,” or “Everything Must Go,” it’s tempting to believe you’re about to score an unbeatable deal. However, while some of these sales are legitimate, others are deceptive marketing schemes or outright scams. Fraudsters exploit the sense of urgency around liquidation sales to trick shoppers into impulse purchases—often for poor-quality goods or items that never arrive.

The Better Business Bureau reports multiple scam reports on the topic of “going-out-of-business” sales that result in the loss of money and personal information.

How Scammers Exploit Going-Out-of-Business Sales Online

Scammers capitalize on the emotional appeal and fear of missing out to push fraudulent sales on social media platforms. A recent fake jewelry store scam reported and analyzed by Bitdefender illustrates how these fraudulent tactics work.

Case Study: The Fake Jewelry Store Scam

During the holiday season, social media platforms were flooded with ads from a “family-owned jewelry business” claiming to be closing after 26 years of operation. The store’s heartfelt message—complete with AI-generated images of a supposed business owner—played on emotions, making consumers feel they were supporting a struggling small business owner.

The scam followed a common pattern:

• Highly emotional messaging: The ads shared tear-jerking stories about the business struggling against large corporations or the owner retiring and needing to sell the remaining stock at huge discounts (up to 70%).
• Fake “Buy One, Get One Free” promotions: To make the deal even sweeter, scammers used urgency-driven phrases like “Limited stock! Don’t miss this exclusive opportunity!”
• Newly created social media profiles: The fake jewelry store had almost no online presence before its “closing sale” launched.
• A website registered just a couple of months prior to the sale: A quick Whois lookup revealed the business had been registered in October 2024—far from the 26 years it claimed to have been operating.
• Counterfeit or poor-quality items: Some victims reported receiving cheap plastic jewelry instead of hand-crafted pieces. Others never received their orders.
• Scammers profiting from returns: In cases where victims tried to return items, they were asked to pay costly international shipping fees—making returns nearly impossible.

Similarly, one victim turned to the BBB Scam Tracker to share a similar experience:

“For example, one consumer shared they saw an advertisement for a "going-out-of-business" sale from a small leather goods company”,  the BBB explained. “When the consumer received their order, the product was not what was advertised.“

“In reality, the products are made in China and are 100% plastic and there are no refunds unless you ship the item back to China at great cost," the customer said.

Another wronged consumer said:

“I saw the Advertisement for [company name redacted] on Facebook. Since the store is going out of business, I believed the Ad that stated it was a store closing. The website looked EXACTLY like the [company name redacted] website that I have used many times over the past several years. I placed my order, they even gave me a Tracking Number which I followed right up to the day they stated my order had been delivered. I was home and did not receive any deliveries...I contacted [company name redacted] gave them the order number and the tracking number, only to be informed that the numbers did not belong to them.”

Red Flags of Fake Going-Out-of-Business Sales

1. New or unfamiliar websites: If a business claims to have been operating for decades, but its domain was registered recently, that’s a warning sign. Use tools like Whois lookup to see how long the website has been around.
2. Highly emotional ads: Scammers use heartfelt stories about struggling small businesses to lower your guard and rush your decision. Be cautious of businesses that pressure you to buy immediately with phrases like “Last chance to support us!”
3. Blurry logos & website inconsistencies: Fake sites often copy branding from legitimate retailers, but small details—like pixelated images, typos, and mismatched fonts—can reveal that something is off.
4. Unrealistic discounts: Be skeptical of businesses offering 50-90% off across their entire store. Luxury jewelry, electronics, and designer goods rarely discount this heavily.
5. Fake customer reviews: Many fraudulent websites copy-paste reviews or use AI-generated testimonials. A lack of customer engagement (such as no comments on social media posts) is a red flag.
6. Unsecure payment methods: If a store doesn’t accept credit cards or only accepts digital payments (Venmo, Cash App, wire transfers, cryptocurrency), stay away. Credit cards offer fraud protection, whereas these other methods make it difficult to recover lost funds.

How to Avoid Falling Victim to These Scams

1. Verify the business: Check the retailer’s reputation on BBB.org or Trustpilot for legitimate customer feedback.
2. Research before you buy: If you’re tempted by a closing sale, search for the company name + “scam” to see if others have reported fraud.
3. Compare prices elsewhere: Just because an item is “70% off” doesn’t mean you’re getting a good price. Check the same product on Amazon, reputable department stores, or the official brand’s website to compare.
4. Use credit cards for protection: If you do get scammed, credit card companies let you dispute the charge. Avoid using debit cards, as they offer fewer fraud protections.
5. Read terms and conditions: check the terms and conditions on the business website and look for inconsistencies.
6. Watch out for fake social media ads: Many of these scams originate from Facebook, Instagram, and TikTok ads that lead to fraudulent stores. Report suspicious ads and pages to consumer protection agencies.
7. Use a security solution on your device: Bitdefender’s security solutions can block malicious and fraudulent websites before they harm you financially.
8. Use scam detection tools: For added peace of mind, try Bitdefender Scamio, our FREE on-demand scam detector you can use to check for any scammy links or proposals you see online. Scamio can analyze any texts, messages, links, QR codes, or images and give you a verdict on whether they are part of a scam. You can also help others stay safe by sharing Scamio with them in France, Germany, Spain, Italy, Romania, Australia, and the UK
9. Use Bitdefender Link Checker for free to verify the safety of links before clicking on them.