You may have recently seen tempting Facebook ads proclaiming unbelievable deals from major retailers like Bed Bath & Beyond, Walmart, Lowes, or Wilko liquidating inventory at 90% off due to bankruptcy. But before you click, know that these viral “Bankruptcy Liquidation” ads are a deceptive scam trying to fool social media users out of their money.
This comprehensive guide will uncover how this brazen scam works, techniques used to trick victims, and most importantly – how to identify and avoid getting ripped off by these fake bankruptcy liquidation sale scammers.
Scam Overview
The Bankruptcy Liquidation Clearance Sale scam employs highly deceptive social media advertisements and convincing sham e-commerce websites to defraud victims out of their money.
Here are a few key points about why this Bankruptcy Liquidation Clearance Sale ad is a scam:
- The ad uses clickbait phrases like “BREAKING NEWS” and “Don’t Miss Out!” to create false urgency and pressure people into buying quickly. This is a common tactic of online scams.
- Promising “Up to 90% Off All Items” is highly suspicious and unrealistic for a major retailer to offer across the board. Legitimate closing sales may offer discounts, but not 90% off everything.
- Secure credit card payments and 24-hour delivery are enticing promises, but likely empty given that this is not the real website. Victims who purchase will likely have their credit card info stolen with no items ever shipped.
- No actual locations are mentioned as closing down or liquidating inventory. The ad is vague, just urging people not to “miss out.” If it was a real closing sale, specific store information would be provided.
- This ad appeared only on Facebook, not on the site official website or social media pages. Scammers create fake accounts and ads to lure victims.
Scammers link these ads to sophisticated fake online storefronts impersonating well-known retailers like Bed Bath & Beyond, JCPenney, Kohl’s, or Walmart. These sites claim the brands are liquidating all merchandise and closing stores permanently due to declaring bankruptcy.
In reality, these sites are elaborate fraudulent shells used to scam users who think they are getting blowout clearance discounts on their favorite brands due to bankruptcy. After checkout, customers never receive any items ordered. The fake scam websites quickly disappear, preventing victims from pursuing refunds.
Some common traits exposing these viral closing sales as scams include:
- The website domain was registered immediately prior to launch of the fake liquidation sale. Scammers only create the sites temporarily to execute their fraud.
- No public bankruptcy filing or announcement exists for the major brand supposedly closing down. This would be major news covered by media outlets.
- Prices discounted to an unrealistic degree, like 90% or even 95% off all merchandise including popular items customers would buy at full price.
- Countdown timers and limited purchase windows pressure buyers to act fast before the unclear deadline expires. This urgency distracts from evaluating legitimacy.
- Email is the only form of customer contact, using a domain name unrelated to the company. There are no working customer service phone numbers.
- The company’s logo appears slightly altered or pixelated on scam sites compared to the real brand’s.
- No social media presence exists beyond the temporary scam ads. Searching online yields no history or satisfied customer reviews.
With no physical stores attached to the liquidation, no valid contact information, no company history, and no permanent web presence, these sham retailer websites essentially vanish after collecting victim’s money. The deceivingly realistic store templates and targeted ads enable an intricate cash grab bilking social media users seeking unbelievable deals.
How the Bankruptcy Liquidation Scam Works
The scam starts with compelling social media ads announcing a major retailer like JCPenney or Kohl’s is liquidating inventory due to declaring bankruptcy. The ads tout blowout fire sale discounts up to 95% off everything as they close stores nationwide.
When users click through to the store’s website, the polished site looks very legitimate at first glance. Merchandise appears drastically marked down in all departments with urgent messages to take advantage before stock runs out.
No indication appears about which physical locations are actually closing. And despite the massive sell-off claims, there’s no option for in-store pickup.
Countdown timers ratchet up the pressure to purchase immediately before the unclear deadline expires. Contact is only available through an email address on the site.
After checkout, no order confirmations get sent and the website soon becomes unreachable. No products ever ship out, but victims’ payment information was already stolen during the fake purchase process.
Some users eventually receive cheap counterfeit items weeks later that barely resemble what was ordered. Most get nothing. Requests for refunds are futile as the sites vanish quickly after collecting payments during the short-term scam.
A handful of customers can get credit card charges reversed as fraudulent. But most victims have no recourse beyond eating the loss, unable to even identify the scammers behind the phony liquidation sales.
How to Spot This Scam
Fraudulent shopping websites often share common patterns that make them easier to detect once you know what to look for. Before entering personal information or making a payment, take a few minutes to check for these warning signs:
- Unrealistic prices and discounts
If a website offers products at prices far below trusted retailers, it’s often a red flag. Many of these sites advertise luxury or high-demand products at massive discounts to create a sense of urgency. A $300 product listed for $49.99 should immediately raise suspicion. - Recently registered or suspicious domain names
Many fraudulent websites operate on newly created domains that disappear after a few weeks. Look for signs like random characters in the URL, misspellings of well-known brands, or hyphenated domains.
You can check a site’s age using tools like WHOIS lookups or ScamAdviser. - Missing or vague company details
Legitimate businesses clearly display their company name, tax information, phone numbers, physical address, and return policies. Fraudulent sites often provide incomplete, fake, or no company details at all. A lack of verifiable contact information is a major warning sign. - No reliable customer service
Real businesses provide clear ways to contact support—email, phone, live chat, or physical return addresses. Fake stores often list nonfunctional contact forms, invalid phone numbers, or reply with generic automated messages. - Poor website quality and structure
Many fake stores are set up quickly with low-effort templates. Look for poor grammar, spelling errors, low-resolution product images, broken links, or missing legal pages (Terms of Service, Privacy Policy, Return Policy). A sloppy website often signals something isn’t right. - Copied product descriptions and images
Fraudulent sites often lift product listings directly from real retailers or marketplaces. If you reverse image search a product photo and find it on multiple unrelated websites, the listing is likely not original. - Lack of credible reviews or suspicious review patterns
A real store will usually have a mix of customer reviews across different platforms. Warning signs include no reviews at all, obviously fake five-star reviews, or multiple identical reviews posted on the same day. Searching “[website name] reviews” or “[website name] scam” on Google often reveals warnings from other consumers. - Unclear or unfair return and refund policies
Fake stores often use vague language around returns and refunds—or avoid the topic entirely. If you can’t easily find clear instructions for how to return an item or get a refund, proceed with caution. - Aggressive urgency and pressure tactics
Fraudulent websites commonly use fake scarcity (e.g., “Only 2 left in stock!”) or countdown timers (“Sale ends in 10 minutes!”) to push you to buy before you think it through. Legitimate stores don’t rely on fabricated urgency to make sales.
Quick Steps to Verify a Website’s Legitimacy
Before entering payment or personal details on a new shopping website, take a few simple precautions:
- Search for the store’s name along with words like “reviews” or “complaints” on Google and Trustpilot.
- Check the website’s domain registration using Whois.com.
- Use trusted tools to scan for malicious or fraudulent links:
- Malwarebytes ScamGuard – detect scams and unsafe links before they reach you on Android and iOS phone.
- Malwarebytes Browser Guard – block dangerous or fake websites on Windows and macOS browsers.
- Verify the business address on Google Maps to ensure it’s a legitimate location.
- Review the store’s accepted payment methods – credit cards and PayPal are traceable and safer than cryptocurrency or bank transfers.
- Trust your instincts; if something feels off, it’s better not to proceed.
How to Spot Similar Scams on Social Media
Many fraudulent shopping websites rely heavily on sponsored social media ads to draw in large numbers of potential buyers. These ads often promise extraordinary discounts—sometimes up to 90% off—and use emotionally charged language to push users into buying immediately.
They frequently appear on Facebook, Instagram, and TikTok, blending in with legitimate content. However, these ads follow predictable patterns that make them easier to identify once you know what to look for.
Spotting Fraudulent Facebook Ads
Facebook’s advertising platform is a favorite tool for fake online stores because of its massive reach. These ads often feature “unbelievable” offers designed to create urgency and bypass critical thinking. Warning signs include:
- Extreme, unrealistic discounts such as “90% OFF,” “Store Closing Sale,” or “Final Liquidation.” Real retailers rarely discount new products this aggressively.
- Poor grammar, awkward phrasing, or inconsistent language throughout the ad or website, indicating low-effort, mass-produced content.
- Generic stock photos or images with watermarks, suggesting the images were taken from legitimate brands or stolen from other sources.
- Recently created Facebook Pages, which is common for temporary fraudulent campaigns. Check the “Page Transparency” section to see when the page was created.
- Limited or no engagement from real customers. Authentic brands usually have reviews, comments, and visible user interaction.
If an ad raises doubts, search for reviews of the website or reverse image search the product photos to see if they’re copied from elsewhere. Never provide payment information until the site is verified.
Spotting Fraudulent Instagram Ads
Instagram is another major platform used to promote fake shopping sites through eye-catching visuals and short-lived “flash sale” captions. Warning signs to look for:
- New or disposable accounts with few posts and followers, often created just weeks or days before launching ads.
- Lack of tagged users in product posts. Legitimate stores often feature real customers, influencers, or product usage.
- Unsecured checkout pages. If the website linked in the bio does not use HTTPS, do not enter payment information.
- Fake or missing customer reviews. Fraudulent stores rarely have authentic purchase feedback.
- Unclear or restrictive return policies, often hidden or written vaguely to make refunds difficult.
When in doubt, search for independent reviews before buying, and only enter payment details on verified, secure websites.
Catching Fake TikTok Ads
TikTok is increasingly used to promote questionable shopping deals through short, persuasive videos. While many ads look polished, the same red flags apply:
- Links to unknown stores that don’t appear in search results or have no external reputation. Many of these sites are temporary and disappear after a short time.
- No verification badge on the TikTok account. While not every legitimate store is verified, the lack of a badge is one more indicator to check further.
- Aggressive countdown timers or “one-day only” promotions designed to rush decision-making.
- Lack of genuine customer reviews or real user content demonstrating the product in actual use.
- Comment sections filled with complaints or warnings from other users. This is often the first place victims speak up.
TikTok scams often rely on impulse buying. Take a moment to verify the website, read independent reviews, and use trusted browser protection before visiting external links.
What To Do If You Are A Victim
If you made a purchase or entered personal information this website, acting quickly can help you minimize financial loss, secure your accounts, and prevent further misuse of your data. Follow these steps carefully:
- Contact your bank or payment provider immediately
If you paid with a credit or debit card, call your bank’s customer service line and explain that you placed an order on a website that may be fraudulent. Request to dispute the transaction or initiate a chargeback.
If you used PayPal or another payment processor, file a dispute through their resolution center and provide order confirmations, emails, or screenshots as supporting evidence.
Fast action gives you the best chance of recovering your money and preventing additional unauthorized charges. - Freeze or replace your payment method
If your card or account details were entered on this website, it’s safest to have your bank or provider issue a replacement card. This prevents future unauthorized transactions and protects your financial accounts.
Some banks may also offer temporary holds or fraud alerts, ensuring no additional transactions can be made without your consent. - Run a personal data removal scan
Fraudulent websites often collect personal information such as names, phone numbers, addresses, and emails. This data may be shared with third parties or added to marketing and phishing lists.
A trusted service such as Malwarebytes Personal Data Remover can identify where your information is listed across data broker networks and help you request its removal. - Check your digital footprint
Even if you didn’t lose money, your personal data could already be circulating online. Running a digital footprint scan can help reveal whether your email address, phone number, or other personal information is present in leaks or broker databases.
This allows you to take proactive measures such as changing credentials, monitoring accounts, or setting up alerts before your data is misused. - Change your passwords and enable 2FA
If the same email or password used during checkout is also used on other websites or services, update those credentials immediately.
Choose strong, unique passwords and enable two-factor authentication (2FA) on all important accounts, especially your primary email, banking apps, and social media. This extra security layer makes unauthorized access significantly harder. - Scan your device for potential threats
Many fraudulent sites contain hidden tracking scripts, phishing pop-ups, or files designed to compromise your security.
Run a full system scan using a trusted security solution such as Malwarebytes Free or ESET Online Scanner to make sure your device hasn’t been exposed to malware or spyware during the visit.
If any suspicious files are found, remove them and restart your device. - Check your accounts and statements regularly
Monitor your bank and credit card statements closely for any unauthorized activity. Look for unfamiliar charges, subscription renewals, or repeated small test transactions.
Also review your email inbox and online accounts for password reset notices or sign-in alerts you didn’t initiate. Report anything unusual to your bank or account provider immediately. - Report the incident to the appropriate authorities
Reporting helps law enforcement track fraudulent websites and can support your claim if needed.- In the U.S., file a report with FTC ReportFraud.ftc.gov.
- In the EU, contact Europol or your national cybercrime unit.
- Globally, you can also submit the site to ScamAdviser to help warn other consumers.
Providing the website URL, order details, and communications increases the impact of your report.
- Save all evidence and communication
Keep copies of order confirmations, emails, payment records, chat logs, and screenshots of the website. This documentation can be crucial for supporting your chargeback request, reporting the case, or pursuing legal remedies if needed.
Store everything in one secure folder so you can easily provide it to your bank or relevant agencies. - Be cautious of follow-up contact
After incidents like this, affected individuals may receive fake refund messages, phishing emails, or phone calls pretending to offer “assistance.”
Do not click on unsolicited links, download attachments, or provide additional personal information. If you receive any message related to this website, verify its authenticity directly through your bank or official payment provider channels.
FAQ
What is the bankruptcy liquidation sale scam?
It’s a scam where fake ads and sites pretend popular retailers are liquidating due to bankruptcy with unrealistic discounts. But it’s a ploy to steal money.
How does the bankruptcy sale scam work?
Scammers use ads to drive traffic to convincing fake sites with unbelievable prices. After checkout, no items are ever shipped to victims.
What are some red flags of this scam?
Prices like 90% off everything, fake countdown timers, no physical location details, new domains, altered logos, email-only contact.
What happens after I order?
Most likely your order disappears with no confirmation. The sites quickly vanish after the “sale,” preventing refunds.
Can I get a refund if I was scammed?
If you paid by credit card you may be able to dispute the charges for non-receipt of goods. File complaints immediately.
Why do they impersonate real retailers?
To make the liquidation sales appear legitimate. Established brand names trick users into believing the unrealistic deals.
Do they ever ship any actual products?
In rare cases, victims report getting random, cheap items weeks later that significantly differ from their order.
How can I spot these scams before ordering?
Research unfamiliar sellers claiming huge discounts. Watch for new site domains and lack of location specifics.
Why such extreme discounts like 90-95% off?
Massive markdowns create urgency to buy before scrutinizing validity. Huge deals also attract more potential victims.
How can I avoid becoming a victim?
Carefully vet unfamiliar sellers and unrealistic discounts. Avoid direct money transfers. Use credit cards with protections.
Conclusion
The viral Bankruptcy Liquidation Clearance Sale scam capitalizes on the disappointment of missing huge blowout discounts from favorite retailers. But the jaw-dropping deals actually mask sophisticated shams just trying to steal money through deception.
Carefully researching unbelievable markdowns, website details, company standing, and avoiding pressure sale tactics is key to not getting duped. Staying vigilant allows social media users to steer clear of these bankruptcy liquidation scams exploiting those desperately seeking deals.
