Skip to content
Submit incident
AII-1002-10951
ReportedReported by fewer than three independent publishers, with no official finding.

Joann Fabrics shoppers reportedly defrauded by AI-generated scam sites

Scammers created fake Joann Fabrics websites using AI tools to clone the retailer's legitimate site and steal shoppers' payment information and personal data. The incident is part of a broader wave of approximately 100,000 fraudulent domains created with AI assistance across 194 brands.

January 2025 Β· Joann Fabrics Β· Fraud, scams and manipulation
January 2025
AII-1002-10951View source β†—
Quick facts
Category
Fraud, scams and manipulation
Country
United States
Source
wsj.com
Date
January 2025
Drafted by
Raidu Incident Detection

What happened

When Joann Fabrics filed for bankruptcy in January 2025, scammers created impostor websites with URLs like 'joannlosangeles.com,' 'jo-annclosingonsale.shop' and 'joanndiscount.shop' designed to look nearly identical to the retailer's legitimate site.

The fake Joann websites used the company's name, branding and product images, pretending to offer merchandise at deep discounts with the aim of stealing shoppers' credit-card information and personal data. Customers who placed orders on these fake sites never received products but had their payment information compromised.

Attackers obtained AI-powered tools available on criminal marketplaces and dark-web forums that scrape the real page, clone its look and feel, and add fake forms designed to capture personal or financial details, enabling scammers to create nearly perfect replicas in minutes without writing code.

Reported impact

Joann Fabrics customers were defrauded through the fake websites, with their payment information compromised after placing orders that never resulted in product delivery.

Index analysis

Netcraft identified nearly 100,000 domains created with the help of AI across 194 brands, of which the Joann impostor sites are part.

Governance controls

Joann Fabrics warned consumers that joann.com was the only legitimate website through which to buy Joann products and urged anyone who made a purchase through a fake site to dispute the charge with their financial institution.

Classification

Category
Fraud, scams and manipulation
Industry
Logistics, wholesale and retail
Country
United States
Harm status
Actual harm
Intent
Intentional
Timing
Unknown
Harm types
Economic or property, Reputational
Harmed
Consumers, Business
Failure modes
Hallucination, Manipulation or dark pattern
AI systems
AI-powered website cloning tools

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

wsj.com
Joann Fabrics shoppers reportedly defrauded by AI-generated scam sites