Counterfeit Postage Account: Everything You Need To Know

Recently, there has been a noticeable rise in the use of counterfeit postage in global mailing. Deliberately using or selling counterfeit postage is illegal because it means obtaining postal services without paying for them, effectively defrauding the Postal Service of its due revenue.

This guide is designed to explore the hidden aspects of counterfeit postage. It will cover how counterfeit postage accounts function, their impacts, and how to identify them.
 

Counterfeit postage refers to any unauthorized marks or labels indicating that postage has been paid, or used to mail items without the Postal Service's permission. Online shoppers may be surprised to learn their purchases were sent with fake postage.

Express companies create accounts under distinct trade names, promising specific shipment volumes to secure better discounts. They operate on a cash-only basis in the market, with settlements made monthly or based on credit limits. Before the payment due date, these companies cancel the trade name account without settling their dues with the courier, exploiting USPS label number rules to print and use fake shipping labels. This allows them to ship goods at nearly no cost.

The impacts of counterfeit postage are broad and can affect various stakeholders, from postal services and businesses to consumers. Here are some of the key impacts:

Loss of Revenue for Postal Services: Counterfeit postage directly leads to financial losses for postal authorities. Since the fake postage implies that the postal service has been paid when it hasn't, the service ends up delivering mail and packages without receiving the appropriate fees, impacting their revenue.

Shipping Delays: Last year, the U.S. conducted a thorough investigation into fraudulent activities, uncovering the widespread use of fake shipping labels by counterfeit accounts. However, the postal services could only detect issues related to account usage, resulting in packages being returned. When returned to overseas warehouses, logistics carriers could simply replace the fake labels with real ones and resend the packages, thus delaying delivery times and impacting many sellers.

Increased Costs: To recover losses from counterfeit postage, postal services might increase the costs of their services, affecting both consumers and businesses that rely on postal services for sending mail and packages. This situation can make shipping more expensive for everyone.
Additionally, businesses must pay again for the resend of the returns with counterfeit postage.

Pay for the Goods: Sellers have faced scenarios where their logistics provider's counterfeit account got flagged, leading to their shipments being held and the postal services imposing significant fines. The logistics provider then required the sellers to pay these fines to retrieve their goods. For sellers with high-value shipments, paying the fine is financially painful, and abandoning the goods is equally distressing, resulting in a no-win situation.

Destruction of Goods: Recently, the USPS updated the Domestic Mail Manual (DMM) regulations and proposed a new federal strategy for handling fraudulent shipping labels and packages. Currently, the USPS risk control cannot destroy or inspect bulk fake labels. However, with the proposed DMM changes, USPS would gain the authority to inspect and collectively destroy packages with counterfeit labels without needing sender/receiver consent. This affects all USPS account shipping methods, including direct shipments, drop shipping from overseas warehouses, and self-fulfilled shipments by independent and third-party platform sellers. Thus, sellers face not only account issues but also potential losses from destroyed goods.

Identifying a counterfeit postage account involves awareness of several key indicators that can signal fraudulent activity. Here’s a concise guide to spotting these accounts:

As we mentioned above, express companies get better discounts by promising specific shipment volumes. Counterfeit accounts primarily disrupt the market by offering low prices to attract businesses. Sellers often fall into the trap of these accounts due to the allure of lower prices.
Counterfeit postage sellers exploit the desire for lower shipping costs to attract customers to their illicit services. By offering postage at below-market prices, they can draw in those looking to economize on shipping expenses, only to expose them to the risks associated with mailing fraud. This tactic not only undermines the financial stability of postal services by diverting legitimate revenue but also places the buyer at risk of legal consequences and delivery failures. The use of counterfeit postage can lead to packages being seized, delayed, or destroyed, causing significant disruptions in supply chains and damage to the reputations of businesses and individuals unknowingly involved in these transactions.

Registration information is a critical tool for identifying counterfeit postage accounts because it provides verifiable details about a business's legitimacy. Official registration, such as a business license, confirms that a company operates within the legal framework set by regulatory authorities, including adherence to postal laws and regulations. A legitimate business will have its registration information readily available for verification, indicating its compliance with industry standards and its commitment to legal business practices, including the proper acquisition and use of postage.

The absence or difficulty in verifying a company's registration information raises red flags about its operations, suggesting the potential for fraudulent activities, including counterfeit postage. Fraudulent entities often lack proper registration or provide false information, making it harder for customers and partners to confirm their authenticity. By checking for valid registration information, individuals and businesses can better avoid engaging in transactions with counterfeit postage accounts, thus protecting themselves from legal issues and ensuring their mailings are compliant and secure.

Founded time serves as a crucial indicator when identifying the legitimacy of accounts, including those related to postage, because it reflects the company's history and stability. A company with a long operational history is generally considered more trustworthy and reliable. This assumption is based on the idea that a business that has successfully navigated the complexities of its market for many years is less likely to engage in fraudulent activities, including the use of counterfeit postage. Such companies have more at stake in terms of reputation and long-term customer relationships, making them more cautious about adhering to legal and ethical standards.

Furthermore, companies with a lengthy history of operation are likely to have undergone various regulatory checks and have had to maintain compliance with industry standards to stay in business. This includes adhering to postal laws and regulations. Long-standing businesses have built a reputation that they wouldn’t want to tarnish with illegal activities like using counterfeit postage, which could lead to significant legal repercussions and damage to their brand. Therefore, assessing a company's founded time can provide valuable insights into its credibility and the likelihood of its involvement in counterfeit postage activities.

It's recommended to prioritize compliance and reliability over low prices when selecting logistics partners. For sellers, opting for a logistics company that adheres to regulations can significantly reduce time costs and ensure safer parcel delivery. Professionalism and dependability are more crucial than price. SFC is a leading third-party logistics service in China, providing global e-commerce sellers with one-stop order fulfillment solutions since its founding in 2009. Get a FREE quote from SFC expert!

Look for official markings, verify the price, and if in doubt, contact the postal service directly for confirmation.

Cease using the service immediately and report the issue to the postal authorities. Legal advice might also be necessary.

Yes, businesses can face legal consequences even if they unknowingly use counterfeit postage, underscoring the importance of due diligence.

Postal services use a combination of technology, legal action, and public awareness campaigns to detect and deter counterfeit postage.

Digital postage offers enhanced security features, but it's not immune to fraud. Continuous advancements in security technologies are necessary to combat counterfeiters.