$2 Shipping Labels, $126 Million in Losses: Feds Charge LabelsBank.com Operator and Offer $100,000 Reward

Published Oct. 14, 2026. Case status is current as of that date.

For a flat $2, a website called LabelsBank.com sold shipping labels that could send a package anywhere in the United States regardless of weight, size or destination, according to federal prosecutors. They say the labels were counterfeit, and that more than 5,200 customers used them on more than 5.1 million packages.

A federal grand jury in the Southern District of Florida has indicted Faheem Akram, 33, of Khanewal, Pakistan, on charges that he operated the site, the U.S. Attorney's Office announced Sept. 28, 2026. Prosecutors put the U.S. Postal Service's losses at more than $126 million [1]. In early October, the U.S. Postal Inspection Service issued a wanted notice offering a reward of up to $100,000 for information leading to his arrest and conviction [3][4].

Important: An indictment is an allegation. Akram has not been convicted and is presumed innocent unless and until proven guilty in court.

Why this matters to small sellers

Anyone who ships goods for a living, from eBay and Whatnot card dealers to Etsy shops, is a target for "discount postage" offers. The government says LabelsBank.com's customers were the ones who bought and used the labels. The indictment is about the alleged seller, and the charging announcements do not say whether any customers face charges. The Postal Inspection Service warns consumers flatly: "Don't purchase discounted stamps or labels online, they are likely fake" [6].

How the alleged scheme worked

According to court records described by prosecutors and postal inspectors [1][2]:

1. The storefront. LabelsBank.com offered USPS shipping labels online. It was not authorized to sell USPS products or services.
2. The flat price. Labels typically cost $2 each "regardless of a package's weight, size, or destination," far below legitimate USPS rates.
3. The volume. Postal inspectors in the Miami Division found that more than 5,200 people bought more than 5.1 million counterfeit labels through the site.
4. The cost. The packages moved through the mail at little or no real cost to the shippers, which the government says caused more than $126 million in lost revenue and shipping costs to USPS.
5. The shutdown. Alongside the indictment, USPS obtained a court order authorizing the seizure and shutdown of the website.

U.S. Attorney Jason A. Reding Quiñones said: "The alleged scheme was simple but massive: sell counterfeit postage online at fixed, cut-rate prices, as little as $2 per label, regardless of a package's weight, size, or destination, enabling customers to avoid legitimate Postal Service charges" [1].

The person charged

Faheem Akram, 33, of Khanewal, Pakistan [1]

• Charges: 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.
• Maximum penalties if convicted: five years in prison on the conspiracy and counterfeit postage counts and 20 years on each wire fraud count.
• Court: U.S. District Court for the Southern District of Florida, case number 26-cr-60249.
• Whereabouts: Not public. Arab News Pakistan reported that U.S. authorities have not said where he is located [4]. The USPIS wanted notice, last updated Oct. 7, 2026, tells the public to "TAKE NO ACTION TO APPREHEND THESE PERSONS YOURSELF" [3].

"Our reach goes beyond our borders," said Inspector in Charge Bladismir Rojo of the USPIS Miami Division [1].

The bigger counterfeit-postage problem

The LabelsBank case is one piece of a much larger loss. In a Sept. 10, 2026 audit, the USPS Office of Inspector General estimated $3.1 billion in revenue lost to undetected counterfeit labels from March 2024 through February 2026. It said the Postal Inspection Service had opportunities to improve its "response to counterfeit labels advertised online." USPS management agreed with eight of the audit's 11 recommendations and disagreed with three [5].

The Postal Inspection Service has also launched a Counterfeit Postage Reporting System for tips, and has warned that "If you are hired to reship packages for a company using their postage labels, it's most likely a scam" [6].

Red flags

• Labels priced far below USPS Click-N-Ship, PayPal, eBay or other authorized carrier rates.
• A flat price for every package, regardless of weight, size or distance.
• Sellers on Telegram, Discord or unfamiliar websites who want payment in crypto or by peer-to-peer apps.
• No connection to an authorized USPS shipping partner.
• A "job" that has you reshipping packages with labels someone else provides.

What to do if you've been offered cheap labels

1. Don't buy or use them. Buy postage from USPS directly or from a marketplace or shipping platform you already use.
2. If you already bought some, stop using them and keep your records. Your packages may be held, delayed or returned.
3. Report the seller through the Postal Inspection Service's Counterfeit Postage Reporting System at uspis.gov, or call 1-877-876-2455.
4. Information about Akram should go to postal inspectors at 1-877-876-2455 (say "Law Enforcement"), reference case No. 4572266 [3].
5. Report online fraud to the FBI at ic3.gov.

Case status (as of Oct. 14, 2026)

Defendant	Court	Status as of Oct. 14, 2026	Source
Faheem Akram, 33, of Khanewal, Pakistan	U.S. District Court, S.D. Fla., No. 26-cr-60249	Indicted (announced Sept. 28, 2026) on conspiracy, five counts of making and selling counterfeit postage labels, and four counts of wire fraud; no arrest reported in the sources we reviewed; USPIS reward of up to $100,000	[1], [3], [4]
LabelsBank.com	N/A	Domain seized and site shut down under court order	[1], [2]

Statuses can change. Charges are allegations, not findings of guilt.

Sources

1. U.S. Attorney's Office, Southern District of Florida, "Pakistani National Charged with Defrauding US Postal Service of Over $100 Million by Selling Counterfeit Postage Online," Sept. 28, 2026. https://www.justice.gov/usao-sdfl/pr/pakistani-national-charged-defrauding-us-postal-service-over-100-million-selling
2. U.S. Postal Inspection Service, "U.S. Postal Inspectors Shut Down Website Selling Millions of Counterfeit Postage Labels," undated on page (accessed Oct. 14, 2026). https://www.uspis.gov/u-s-postal-inspectors-shut-down-website-selling-millions-of-counterfeit-postage-labels
3. U.S. Postal Inspection Service, "Faheem Akram: Counterfeit Postage Label Sales" (wanted notice), last updated Oct. 7, 2026. https://www.uspis.gov/news/wanted/faheem-akram-counterfeit-postage-label-sales
4. "US seeks Pakistani accused in $126 million postal fraud, offers $100,000 reward," Arab News Pakistan, Oct. 6, 2026. https://www.arabnews.pk/pakistan/us-seeks-pakistani-accused-in-126-million-postal-fraud-offers-100000-reward-3003298
5. USPS Office of Inspector General, "Efforts to Mitigate Counterfeit Postage," Report No. 25-072-R26, Sept. 10, 2026. https://www.uspsoig.gov/reports/audit-reports/efforts-mitigate-counterfeit-postage
6. U.S. Postal Inspection Service, "New Reporting Tool Gives Consumers Way to Help U.S. Postal Inspection Service Stamp Out Counterfeit Postage," undated on page (accessed Oct. 14, 2026). https://www.uspis.gov/new-reporting-tool-gives-consumers-way-to-help-u-s-postal-inspection-service-stamp-out-counterfeit-postage

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