Pakistan Arrests Suspect in 126 Million Dollar US Postal Fraud

Pakistani authorities have arrested Faheem Akram, a 33-year-old man from Khanewal, over an alleged online counterfeit postage scheme that caused more than $126 million in losses to the US Postal Service. The National Cyber Crime Investigation Agency (NCCIA) Lahore Zone made the arrest on Tuesday, October 20, 2026, following a multiregional investigation into millions of fraudulent shipping labels sold through a website.

According to the NCCIA and US prosecutors, Akram allegedly operated LabelsBank.com from August 2023 until September 2026, selling more than 5.1 million counterfeit US postage labels for approximately $2 each. More than 5,200 customers purchased the labels, which allegedly enabled packages to be shipped at prices substantially below legitimate postal rates.

The NCCIA cited transactions worth approximately Rs35 billion, while US authorities estimated losses to the postal service at more than $126 million. The figures refer to different aspects of the alleged scheme, with the dollar amount representing the losses attributed to the US Postal Service.

According to the US Attorney's Office for the Southern District of Florida, a federal grand jury indicted Akram on September 28, 2026. The charges include conspiracy to defraud the US government, making and selling counterfeit postage labels, and wire fraud. A court order authorized the seizure and shutdown of LabelsBank.com.

US prosecutors allege that the website sold postage at a fixed price regardless of a parcel's weight, size or destination. The labels were not authorized US Postal Service products, and their below-market pricing allegedly allowed customers to avoid legitimate shipping charges, resulting in substantial financial losses.

The US Postal Inspection Service had offered a reward of up to $100,000 earlier in October for information leading to Akram's arrest. If convicted, he faces a maximum of five years in prison on the conspiracy and counterfeit postage charges, and up to 20 years for each wire fraud count, according to the US Attorney's Office.

The NCCIA investigation identified 16 bank accounts allegedly connected to the transactions. Investigators said seven accounts belonged to Akram, five to his brother, two to his wife, and one each to his sister and maternal aunt.

According to the Pakistani newspaper The News, investigators registered case No. 246/2026 and formed eight special teams to pursue the case across Punjab, Islamabad and Sindh. The teams conducted 35 raids, questioned 47 people, analyzed 122 call data records and 50 IMEI tracking reports, and examined audio and video recordings from 120 cameras using modern technology and artificial intelligence.

The NCCIA also conducted a 10-day locator operation before arresting Akram. The agency said the investigation remains ongoing as authorities examine the alleged financial transactions and the network associated with the counterfeit postage operation.