[Tech News] The $2 Postage Scam That Cost the US Postal Service $126 Million
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A website was selling US shipping labels for a flat $2 — any weight, any size, any destination. Thousands of online sellers jumped at the deal. The US Department of Justice now says those labels were counterfeit, and the damage to the US Postal Service has crossed $126 million.
What happened
On September 28, 2026, the DOJ announced that a federal grand jury in the Southern District of Florida had indicted Faheem Akram, 33, of Khanewal, Pakistan, for allegedly operating LabelsBank.com — a site prosecutors say sold more than 5.1 million counterfeit US postage labels without ever being authorized to sell USPS products.
Investigators say over 5,200 customers bought labels through the site, typically paying about $2 per label no matter what the parcel weighed or where it was going. The resulting lost postage revenue and shipping costs to the Postal Service are estimated at more than $126 million.
US authorities have seized the website and shut it down under a court order. The case was investigated by the Miami Division of the US Postal Inspection Service. Akram faces ten federal charges, including conspiracy to defraud the United States, five counts of making and selling counterfeit postage, and four counts of wire fraud. The Postal Inspection Service is offering a reward of up to $100,000 for information leading to his arrest and conviction.
One important note: an indictment is a charge, not a conviction. Akram is presumed innocent unless proven guilty in court.
How the $2 scheme worked
The pitch was brutally simple. Real US postage is priced by weight, size, and distance — shipping a heavy parcel can easily cost $15 or more. LabelsBank allegedly charged a flat $2 per label for everything, letting buyers ship parcels at a fraction of the legitimate price.
Most customers appear to have been small e-commerce sellers — the kind of people running eBay, Etsy, or Shopify stores — trying to cut their shipping costs. At $2 a label, the savings looked irresistible. But every underpaid parcel shifted the real cost onto the Postal Service, and at a scale of 5.1 million labels, those small discounts added up to nine figures.
Why this matters to you
You don't have to run a scam website to get burned by this kind of fraud. Here are the practical takeaways:
- If postage is far below official rates, it's counterfeit. Nobody can legally sell you USPS postage at an 80–90% discount. "Discount postage" sites and social media ads offering exactly that are a red flag.
- Using counterfeit postage is itself a federal crime. Buyers who thought they were just getting a bargain were participating in a fraud scheme — some may now face questions from investigators.
- Buy postage only from USPS.com or authorized vendors. If a deal on shipping labels sounds too good to be true, check the vendor against USPS's official list before paying.
- Sellers: the savings aren't worth it. A few dollars saved per parcel means nothing next to a federal fraud investigation.
Protect yourself from online fraud
Schemes like LabelsBank work because they look like ordinary e-commerce — a professional website, checkout flow, and customer support. The best defense is understanding how online fraud operates before you become a target. Cybersecurity For Dummies is a beginner-friendly guide that walks through phishing, fraud, and identity-theft schemes in plain language — worth a read if you buy or sell anything online.
This article contains an affiliate link. As an Amazon Associate I earn from qualifying purchases.
Source: US Department of Justice press release, Southern District of Florida, September 28, 2026.
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