Pakistan arrests suspect in alleged $126m US postage fraud

Pakistan’s cybercrime agency has arrested Faheem Akram, a man accused of operating a counterfeit postage business that allegedly cost the US Postal Service $126 million, BBC News reported on 21 October. The 33-year-old from Khanewal, Pakistan, was indicted by a federal grand jury in Florida in September.

The US Attorney’s Office for the Southern District of Florida alleges that Akram operated LabelsBank.com, selling counterfeit US postage through the website from 2023. Authorities have shut down the site.

Labels allegedly sold for $2 regardless of shipping requirements

Prosecutors allege that the website offered counterfeit shipping labels at a flat price, usually $2 each, without accounting for a parcel’s weight, dimensions or destination. They say this allowed customers to send packages for substantially less than legitimate postage rates, leaving the Postal Service with lost revenue and shipping costs.

According to an investigation described in the US attorney’s office release, more than 5,200 people purchased over 5.1 million counterfeit shipping labels. The $126 million figure represents alleged losses to the Postal Service, not an established finding of Akram’s earnings.

Earlier in October, the US Postal Inspection Service offered a reward of up to $100,000 for information leading to Akram’s arrest.

Charges and potential penalties

Akram faces 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.

The US attorney’s office said the conspiracy and counterfeit-postage counts carry maximum prison terms of five years, while each wire-fraud count carries a maximum of 20 years if he is convicted. These are statutory maximum penalties, not a sentence imposed by a court.

The charges remain allegations. The report did not include a response from Akram or his legal representatives, or details of any arrangements to transfer him to the United States.