A Pakistani man has been indicted in the United States for allegedly operating an unauthorized website that sold more than 5.1 million counterfeit U.S. postage labels, resulting in more than $126 million in alleged losses for the U.S. Postal Service.
A federal grand jury in Florida has indicted 33-year-old Faheem Akram of Khanewal, Pakistan, over an alleged online counterfeit postage operation that prosecutors say generated millions of fraudulent U.S. Postal Service shipping labels.
According to the U.S. Department of Justice, Akram allegedly operated LabelsBank.com, a website that sold counterfeit USPS postage labels for approximately $2 each, regardless of a package’s weight, size or destination. The website was not authorized by USPS to sell its products or services.
More Than 5.1 Million Labels Allegedly Sold
U.S. authorities said more than 5,200 people used the website to purchase more than 5.1 million counterfeit shipping labels.
The unusually low fixed price allegedly allowed customers to ship packages for significantly less than legitimate USPS rates, resulting in substantial lost revenue for the Postal Service.
The alleged scheme operated online and targeted customers in the United States, according to federal investigators.
Website Seized and Shut Down
Following the indictment, U.S. authorities obtained a court order allowing them to seize and shut down the LabelsBank.com domain.
The U.S. Postal Inspection Service’s Miami Division investigated the case, with federal prosecutors in the Southern District of Florida handling the charges.
Authorities said the investigation demonstrates how online operations based outside the United States can be used to target American consumers and government services.
Akram Faces 10 Federal Charges
Akram faces 10 federal charges, including:
- One count of conspiracy to defraud the United States and to make and sell counterfeit postage stamps
- Five counts related to making and selling counterfeit postage stamp labels
- Four counts of wire fraud
If convicted, he could face a maximum sentence of five years for the conspiracy and counterfeit-postage charges and up to 20 years for each wire-fraud count, according to the Department of Justice.
Investigation Focused on Online Counterfeit Postage
The alleged operation centered on the sale of postage labels through the website rather than through authorized USPS channels.
Federal investigators said the labels were sold at a fixed price, allegedly allowing buyers to obtain shipping rates far below legitimate USPS charges.
The case also highlights the increasing role of online platforms in fraud involving counterfeit digital and physical services.
Charges Are Allegations
The indictment does not establish guilt.
The U.S. Department of Justice said the charges are allegations and that Akram is presumed innocent unless and until proven guilty beyond a reasonable doubt in court.
The case is being investigated by the U.S. Postal Inspection Service’s Miami Division.
What This Means for Online Buyers
U.S. authorities have warned consumers to be cautious when purchasing postage or shipping services online at prices significantly below official rates.
The LabelsBank case demonstrates how counterfeit shipping labels can affect not only customers but also postal operators and other businesses that rely on online transactions.
