Pakistan arrests man over $126 million US postage fraud

Dubai: Authorities said a Pakistani man accused of running an online counterfeit postage scheme that allegedly cost the US Postal Service more than $126 million has been arrested in Lahore.

Faheem Akram, 33, was detained on Tuesday following a weeks-long search involving raids across Pakistan, according to the country’s National Cyber Crime Investigation Agency (NCCIA).

US prosecutors accuse him of operating LabelsBank.com, a website that allegedly sold more than 5.1 million counterfeit shipping labels to over 5,200 customers.

The labels typically cost just $2 each, regardless of a package’s weight, size or destination, allowing customers to send parcels at rates far below official postal charges.

According to the US Attorney’s Office for the Southern District of Florida, Akram operated the unauthorised website from Pakistan.

Investigators allege that the counterfeit labels allowed customers to avoid paying legitimate shipping fees, causing more than $126 million in lost revenue and shipping costs to the US Postal Service.

The $126 million figure represents the alleged losses the postal service suffered, not the amount Akram earned from selling the labels.

According to Pakistani investigators, the website operated from August 2023 until September 2026.

US authorities have since seized and shut down the website.

Atif Ameer, a senior NCCIA official, said investigators identified 16 bank accounts allegedly linked to the operation.

Seven belonged to Akram, five to his brother, two to his wife, and one each to his sister and aunt.

Investigators raided 35 locations and questioned 47 people while tracing the suspect and examining the alleged financial network.

Eight special teams were deployed across Punjab, Islamabad and Sindh as part of the investigation.

Authorities are also examining whether other individuals helped operate the website, process payments, or distribute counterfeit postage labels.

A federal grand jury in Florida indicted Akram in September.

Earlier this month, the US Postal Inspection Service offered a reward of up to $100,000 for information that could lead to his arrest and conviction.

He 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 labels, and four counts of wire fraud.

If convicted, he could face up to five years in prison on the conspiracy and counterfeit postage counts, and up to 20 years on each wire fraud count.

It remains unclear whether Akram will be extradited to the United States or face trial in Pakistan.

The charges remain allegations, and he is presumed innocent unless proven guilty.