USPS Shuts Down Counterfeit Postage Site; $126M Fraud Uncovered

S. 1 million fake USPS postage labels to more than 5,000 customers, resulting in losses exceeding $126 million. The site charged a flat $2 rate per label regardless of package weight, size, or destination, significantly undercutting legitimate postage costs and destabilizing revenue for the national mail carrier. This enforcement action highlights a systemic vulnerability in the parcel shipping ecosystem.

Counterfeit postage schemes have escalated across online platforms—with scammers leveraging social media marketplaces, e-commerce sites, and third-party vendors to sell fake stamps at discounts of 20–50% below face value. Forensic investigators have traced production sources to China and linked counterfeit postage to broader reshipping scams where victims unknowingly participate in the movement of stolen goods. The USPS has responded by redefining postage counterfeiting regulations and treating mail with fake postage as abandoned. For supply chain and logistics professionals, this development underscores critical compliance and vendor risk management challenges.

Shippers relying on third-party label brokers or discounted postage sources face operational disruption and legal liability. The broader implication is that organized fraud rings are now operating across borders with sophisticated infrastructure, requiring heightened due diligence in carrier selection and postage procurement practices.