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U.S. Postal Inspection Service and partner agencies seized LabelsBank.com, a website allegedly used to sell more than 5.1 million counterfeit USPS postage labels. Faheem Akram, 33, of Khanewal, Pakistan, was indicted on charges including conspiracy, counterfeiting postage labels, and wire fraud, with prosecutors citing more than $126 million in losses to USPS.
Federal authorities have seized the internet domain LabelsBank.com and charged a Pakistani national with operating a website that allegedly sold more than 5.1 million counterfeit U.S. Postal Service postage labels, causing losses prosecutors put at more than $126 million. The announcement, made on September 24, 2026, followed an investigation by the Miami Division of the U.S. Postal Inspection Service working with partner federal agencies.
Court records identified the alleged operator as Faheem Akram, 33, of Khanewal, Pakistan. According to a report published by Postal Employee Network on September 26, 2026, LabelsBank.com 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, according to authorities.
Postal inspectors determined that more than 5,000 customers used the website to purchase more than 5.1 million counterfeit shipping labels. Because the labels allowed packages to ship at deeply discounted prices, prosecutors say USPS lost substantial revenue for shipping services it actually performed.
Akram has been indicted on 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. A court order issued in conjunction with the indictment authorized the domain seizure and shutdown of the website. Authorities emphasized that the charges are allegations only, and that Akram is presumed innocent unless or until proven guilty.
Costs to USPS and Its Customers
The scale of the alleged operation — more than 5.1 million labels tied to more than $126 million in claimed losses — makes this one of the larger counterfeit-postage cases publicized by federal authorities in recent years. Revenue lost to counterfeit postage is effectively shifted onto USPS, which has faced ongoing financial pressure, and ultimately onto legitimate mailers whose rates subsidize the network.
The case also highlights how easily discounted counterfeit labels circulate online. Buyers of cut-rate labels — more than 5,000 customers in this instance, according to inspectors — may not realize that using counterfeit postage can expose them to seized packages, returned mail, or their own legal liability. The Postal Inspection Service has previously warned that packages bearing counterfeit postage are subject to interception and that recipients and senders can lose both the item and the money paid.
Finally, the indictment of an operator based abroad signals that postal inspectors intend to pursue counterfeit-postage schemes even when the suspected operators are outside the United States.
How the Investigation Unfolded
The case was investigated by postal inspectors from the Miami Division of the U.S. Postal Inspection Service, the law enforcement arm of USPS, in conjunction with partner federal agencies and prosecutors from the U.S. Attorney’s Office for the Southern District of Florida. Inspectors traced purchases made through LabelsBank.com and documented the volume of counterfeit labels sold before seeking the indictment and a court-authorized seizure order.
Domain seizures of this kind are a common enforcement tool when a website itself cannot be physically raided: a court order allows authorities to take control of the web address, taking the storefront offline even if the operator remains abroad. Counterfeit postage schemes have grown alongside e-commerce shipping volumes, with the Inspection Service maintaining public guidance warning consumers and small sellers about below-market postage offers.
“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
Allegations, Extradition, and Open Questions
All figures in the case — the 5.1 million labels, the 5,000 customers, and the $126 million in losses — are allegations drawn from the indictment and investigators’ statements, not findings established at trial. Akram remains presumed innocent, as authorities explicitly noted.
It is not clear from the announcement whether Akram is in custody in Pakistan, whether the United States will seek his extradition, or when he might appear in a U.S. courtroom. Authorities have not detailed how many of the counterfeit labels were actually used in the mail stream, how many packages were intercepted, or whether any of the customers who bought labels face charges. The full list of partner agencies was also not specified in the announcement.
The Legal Road Ahead
The criminal case will proceed in federal court, where prosecutors must prove the charges beyond a reasonable doubt. If Akram is abroad, the next practical question is whether U.S. authorities will request his arrest and extradition to the Southern District of Florida — a process that can take months or longer and depends on cooperation from Pakistani authorities.
The seized LabelsBank.com domain will remain under U.S. government control under the court order. Separately, the Postal Inspection Service typically continues identifying packages bearing counterfeit postage from shut-down vendors, which can mean seizures or returns of mail connected to labels already purchased. The agency has also encouraged consumers to report suspected counterfeit postage through its public reporting channels.
Key Questions
Who is charged in the counterfeit postage case?
Faheem Akram, a 33-year-old Pakistani national from Khanewal, Pakistan, has been indicted for allegedly operating LabelsBank.com. He faces 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 big was the alleged counterfeit label operation?
According to the indictment and investigators, more than 5,000 customers purchased more than 5.1 million counterfeit shipping labels through the website, allegedly causing more than $126 million in losses to USPS. Labels reportedly sold at a fixed rate of about $2 each.
Is LabelsBank.com still operating?
No. A court order issued alongside the indictment authorized federal authorities to seize the domain and shut down the website, according to the announcement.
What happens to mail sent with counterfeit postage?
The Postal Inspection Service warns that packages bearing counterfeit postage can be intercepted, seized, or returned, and senders may lose both the item and the money they paid. Buyers of discounted labels from unauthorized sites bear that risk.
Will the operator be brought to the United States for trial?
That is unclear. Akram is believed to be in Pakistan, and the announcement did not say whether he is in custody or whether U.S. authorities will seek extradition. The case remains at the indictment stage.
Source: hn
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