TL;DR
Get privacy and security gear delivered free — and shop member deals
- Fast, free delivery on millions of items
- Access to Prime Big Deal Days deals on October 6–7
- Prime Video, Amazon Music and more included
The U.S. Postal Inspection Service and partner agencies seized the domain LabelsBank.com and charged Faheem Akram, 33, of Pakistan, with selling more than 5.1 million counterfeit USPS postage labels. Prosecutors allege the scheme caused over $126 million in USPS revenue losses. Charges are allegations; Akram is presumed innocent unless proven guilty.
Federal authorities have seized the internet domain LabelsBank.com and criminally charged a 33-year-old Pakistani national with operating a website that allegedly sold more than 5.1 million counterfeit U.S. Postal Service postage labels, according to a September 24 announcement from the U.S. Postal Inspection Service’s Miami Division. Prosecutors say the alleged scheme cost the Postal Service more than $126 million in lost shipping revenue.
Court records show that Faheem Akram, of Khanewal, Pakistan, operated LabelsBank.com, a website that allegedly sold counterfeit USPS postage at a fixed rate — typically $2 per label — regardless of a package’s weight, size, or destination. The site was not authorized to sell USPS products or services. Customers who bought the labels could ship packages at deeply discounted prices, which prosecutors say resulted in substantial revenue losses to USPS for shipping services it actually performed.
Postal inspectors from the Miami Division of the Postal Inspection Service found that more than 5,000 customers used LabelsBank.com to purchase more than 5.1 million counterfeit shipping labels. In conjunction with Akram’s indictment, a court issued an order authorizing seizure of the domain and shutdown of the website.
Akram is charged with one count of conspiracy to defraud the United States and to make and sell counterfeit postage stamps, five counts of making and selling counterfeit postage stamp labels, and four counts of wire fraud. Under U.S. law, criminal charges are only allegations, and every defendant is presumed innocent unless or until proven guilty.
Why Counterfeit Postage Hits USPS Revenue
The scale of the alleged operation — more than 5 million labels and losses prosecutors place above $126 million — makes this one of the larger counterfeit postage cases publicized by the Inspection Service. Fake labels undercut the Postal Service on price while USPS still bears the actual cost of transporting and delivering the packages. The case also signals that postal investigators are pursuing operators based outside U.S. borders, an approach inspectors emphasized in announcing the seizure.
For online sellers and small businesses, the case is a warning that buying deeply discounted postage from unauthorized websites carries risk: packages shipped with counterfeit labels can be intercepted, and buyers of fraudulent postage may face their own consequences. The more than 5,000 customers identified by inspectors illustrate how widely the alleged service was used.
How the Alleged LabelsBank Operation Worked
According to the indictment described by prosecutors, the alleged scheme was straightforward: sell counterfeit postage online at fixed, cut-rate prices — as little as $2 per label — no matter the package’s weight, size, or destination. That pricing model let customers bypass the variable, distance- and weight-based fees the Postal Service legitimately charges, while USPS still delivered the packages.
The case was investigated by the U.S. Postal Inspection Service’s Miami Division together with partner federal agencies, and is being prosecuted by the U.S. Attorney’s Office for the Southern District of Florida. The domain seizure and website shutdown were carried out under a court order issued alongside the indictment.
“Our reach goes beyond our borders. If you are defrauding the Postal Service and targeting U.S. consumers by pushing phony postage, we will find you and bring you to justice.”
— Bladismir Rojo, Postal Inspector in Charge, Miami Division
What the Case Does Not Yet Resolve
The charges against Akram are allegations only; he is presumed innocent unless or until proven guilty in court. It is not clear from the announcement whether Akram is in custody, whether the United States will seek his extradition from Pakistan, or when he might appear in court.
Authorities have not said whether any of the more than 5,000 customers who purchased counterfeit labels face charges or other consequences, nor how much of the alleged $126 million in losses might be recovered. The announcement also does not detail how long the website operated before the seizure.
The Legal Road Ahead for Akram
The criminal case will proceed in federal court, with prosecutors needing to prove the conspiracy, counterfeiting, and wire fraud counts beyond a reasonable doubt. Key open questions include whether U.S. authorities secure Akram’s presence in a U.S. courtroom and what sentences the charges carry if he is convicted.
Separately, the Postal Inspection Service has encouraged the public to learn about counterfeit postage, and further enforcement actions against similar unauthorized postage sellers remain possible as inspections continue.
Key Questions
What was LabelsBank.com accused of doing?
Prosecutors allege the website sold more than 5.1 million counterfeit USPS postage labels at a fixed rate of about $2 each, letting customers ship packages while avoiding legitimate USPS fees. The domain has been seized and the site shut down under a court order.
Who has been charged?
Faheem Akram, 33, of Khanewal, Pakistan, was indicted on one conspiracy count, five counts of making and selling counterfeit postage stamp labels, and four counts of wire fraud. The charges are allegations, and he is presumed innocent unless proven guilty.
How much did the alleged scheme cost USPS?
Prosecutors allege more than $126 million in losses to the Postal Service, based on shipping services USPS performed for packages sent with counterfeit labels.
Could customers who bought the fake labels face consequences?
The announcement does not say whether any of the more than 5,000 identified customers will face charges. Packages shipped with counterfeit postage can be intercepted by USPS, and authorities have encouraged the public to be alert to counterfeit postage.
Is the website still operating?
No. A court order issued with the indictment authorized the seizure of the domain and the shutdown of LabelsBank.com, according to the U.S. Attorney’s Office for the Southern District of Florida.
Source: hn
Fall Picks
fall essentials
As an affiliate, we earn on qualifying purchases.
