More on Counterfeit Parcel Postage Labels and, Yes, Many of These Originate in China
... and some identification tips ...
When I walked into my local post office a few days ago and glanced at the back counter, one single hand-written word caught my eye: “FRAUD.”
The parcel, shown below, was mailed to a local resident, was caught by our postmaster and assessed full postage due — in this case $17.35. The sender, called “Virtual Victory Store” is supposedly located in Norfolk, Va. However, a search of the address, which is a real address in this case, revealed a small carpet cleaning business, not a “Virtual Victory Store,” whatever that is.
When asked about this now-identified piece of mail, my postmaster said postal personnel finally have a few more tools to help spot counterfeit package labels, which have become a huge source of revenue loss for the USPS. There are two primary forms of counterfeit postage labels: completely fabricated fake labels and real labels for flat-rate pieces that have been altered to “save” money from a real rate. In this piece we’ll focus on the former.
Still, there are plenty of fake labels coming from China (or at least originating there, even if they are printed in the United States). Most of these have been used in conjunction with shipments from the huge Chinese trinket business Temu. One source in China states that “scammers advertise counterfeit USPS postage on Chinese social media, charging as little as 60 cents to deliver packages in America.” These labels appear as if they originated in the United States, but they did not. But many Chinese counterfeit package labels are printed in the United States as well.
According to one story in an online tech publication known as “rest of world,” Chinese merchants using counterfeit postage labels tend to work with small warehouses in the United States that are willing to bear the legal risk of processing such packages. The underscored text above is a link that leads to an extremely revealing story about these labels and the use of Chinese nationals to repackage and remail Chinese merchandise, mostly with counterfeit postage.
“With the [low] prices listed on Temu, I would never be able to make money if I paid for legitimate shipping.”
“The merchants send digital files of the counterfeit labels,” according to the story, “which have details of the shipper and recipient, a tracking number, and a barcode, to the warehouses. Workers there print out the labels, affix them to the packages, and drop them off at post offices. One Temu merchant has been purchasing 1,000 to 2,000 fake labels daily, and sending them as PDFs to a U.S.-based warehouse since November [2024]. The labels, if paid properly, would generally cost more than $8 each, “but the fake ones,” according to the story “cost only 5 yuan (68¢) each.” That merchant simply stated, “With the [low] prices listed on Temu, I would never be able to make money if I paid for legitimate shipping.”
With the recent elimination of the de minimis exception (where parcels valued at less than $800 enter the United States duty-free and largely unexamined), it’s entirely possible that at least this one form of counterfeiting may be significantly reduced. Time will tell.
Not realizing counterfeit non-stamp postage was as widespread as it is, I first wrote about domestically produced counterfeit labels a few weeks ago. As mentioned, they have become a major source of revenue loss for the USPS. Unlike the Chinese counterfeit stamps, though, the Postal Inspection Service can act quickly and decisively on this type of fraud — if it is detected. This includes the counterfeit postage being printed in the United States by Chinese nationals from electronic files provided from China.
According to information I had at that time, unless a mail piece was caught at the point of origin, the only other way to positively identify it as counterfeit was to manually enter the tracking number, which would bring up a message identifying it as counterfeit postage.
Postal personnel now have other tools that can help them quickly identify a suspect parcel that can then be examined more closely.
On the parcel that is shown, you’ll note there is a boxed number circled by a highlighter. This indicates the carrier route indicated by the postage label does not match the actual route. This is a huge red flag, since this information entered by those who create the labels, and that was the tip-off for identifying this piece.
But there are other possible tells as well. A single name as the sender isn’t always fraudulent, but is enough to cause a clerk to take a second look, which may result in detection of a counterfeit label.
Even more telling is when the city named as the point of origin on the label doesn’t match a return address elsewhere.
While these tips are not foolproof, they are enough to steer alert clerks towards fingering the fraud. Our own small local post office caught about five packages last week with counterfeit labels.
If you are curious about fake postage labels, the following tips can help identify them. While my own focus is on counterfeit postage through the USPS, neither FedEx nor UPS have been immune from this multi-million-dollar problem.
I feel strongly that if we are to maintain these vital segments of infrastructure, we need to be vigilant and help eliminate the problem. If you receive a parcel that you feel may be counterfeit, please use the following steps to verify, then alert the USPS (or UPS or FedEx. Even if they aren’t already aware of this widespread fraud, calling it to their attention is appropriate and may help them address the problem.
Identifying a fake shipping label involves several steps. Here are some key factors to consider:
1. Check the Tracking Number
Format: Look up the tracking number on the carrier's official website (e.g., USPS, FedEx, UPS). Each carrier has a specific format for tracking numbers. If the number doesn't match, it could be fake.
Status: If the tracking number shows no record or an unusual status (e.g., "not found"), it may be a sign of a fake label.
2. Examine the Shipping Label
Quality: Genuine shipping labels are printed clearly with high-quality ink. If the label looks blurry, faded, or poorly printed, it may be fake.
Barcodes: Check if the barcode is scannable using a barcode scanner or a smartphone app. If it doesn't scan or leads to an unrelated website, it's suspicious.
3. Look for Missing Information
Sender and Receiver Details: Ensure that all required information (sender's address, recipient's address, weight, and shipping method) is present and correctly formatted.
Return Address: Legitimate labels typically include a return address. If this is missing or looks unusual, it could be a red flag.
4. Check for Tampering
Alterations: Inspect the label for any signs of tampering, such as smudges, cut marks, or stickers placed over original information.
5. Research the Sender
Company Information: If you're unfamiliar with the sender, look them up. Verify their contact details and check for reviews or complaints online.
Email Confirmation: If you received the label via email, confirm with the sender through a separate communication channel (like a phone call) to ensure its legitimacy.
6. Use Official Resources
Carrier Websites: Visit the official website of the shipping carrier for guidance on identifying fake labels and reporting suspicious activity.
Well done! Your talk at GASS in Hartford last summer suggested that Chinese Stamp Counterfeits were starting to made in high quality. It sounds like these parcel label forgeries may be less "authentic" in appearance.