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Incident 1189: Joann Fabrics Shoppers Reportedly Defrauded by AI-Generated Scam Sites, Part of Purported Wave of ~100,000 Fake Domains Across 194 Brands

Description: Consumers were allegedly defrauded by AI-generated scam websites impersonating Joann Fabrics following the retailer's bankruptcy. The alleged impostor sites reportedly used Joann's branding to steal credit card details and personal data and leaving victims without products. Cybersecurity firm Netcraft estimated that nearly 100,000 domains created with AI tools were impersonating 194 brands, accounting for a reported 6–7% of global phishing activity.

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Alleged: Unknown generative AI developers developed an AI system deployed by Unknown scammers , Unknown fraudsters and Unknown cybercriminals, which harmed Consumers , Shoppers , Customers , General public , Joann's Fabrics and Companies whose domains and websites are impersonated by scammers.
Alleged implicated AI system: Unknown generative AI technology

Incident Stats

Incident ID
1189
Report Count
1
Incident Date
2025-08-20
Editors
Daniel Atherton

Incident Reports

Reports Timeline

+1
Cybercriminals Use AI to Create Fake Websites That Look Just Like the Real Thing
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Cybercriminals Use AI to Create Fake Websites That Look Just Like the Real Thing

Cybercriminals Use AI to Create Fake Websites That Look Just Like the Real Thing

wsj.com

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Cybercriminals Use AI to Create Fake Websites That Look Just Like the Real Thing
wsj.com · 2025

When Joann Fabrics filed for bankruptcy for the second time within a year this January, scammers seized the opportunity. Within days, a flurry of impostor websites appeared with URLs like "joannlosangeles.com," "jo-annclosingonsale.shop" an…

Variants

A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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