Counterfeit USPS Labels: A Hidden Threat to E-Commerce Logistics 🚨

During a recent negotiation with a potential fulfillment customer, I encountered something unusual. The customer claimed that their current 3PL was shipping parcels weighing around 3 lbs for just $5 via USPS Priority Mail.

Anyone familiar with USPS pricing knows this doesn’t add up. Out of curiosity, I asked who they were using. The answer: a website called ShipScouts.

To verify, I signed up and generated a sample label. When I shared it with our USPS representative, the response was clear:
👉 The labels were counterfeit. The USPS Mailer ID (MID) being used was hijacked, and postal inspectors were already notified.

Why Counterfeit Labels Are a Growing Problem

For the past few years, counterfeit USPS labels have been spreading across the logistics space. Here’s how these schemes typically work:

• Fraudsters hijack legitimate USPS Mailer IDs (MIDs).
  
  
• They sell counterfeit labels online at impossible rates (e.g., $2.50 for Ground Advantage or deeply discounted Priority Mail).
  
  
• Some overseas sellers even advertise rates as low as $1 for 70 lbs to flood the market.
  
  

While these offers may seem attractive, the reality is stark:

• Fraud: Someone else is footing the bill. US Taxpayers!
  
  
• Federal Crime: Using counterfeit labels exposes businesses to serious legal risk.
  
  
• Unfair Competition: Honest logistics providers can’t compete with artificially low rates.
  
  

Why This Matters to the Industry

• 3PLs & Fulfillment Providers: Counterfeit rates distort the market and undercut legitimate businesses.
  
  
• E-Commerce Sellers: By using these labels, even unknowingly, you put your brand at risk of legal consequences and reputational damage.
  
  
• Consumers: Fraud in the supply chain ultimately drives up costs and reduces service reliability for everyone.
  
  

Unfortunately, USPS enforcement alone can’t eliminate the problem. That’s why it’s critical for us as an industry to raise awareness and educate shippers.

Final Thoughts

ShipScouts is just one example — there are thousands of similar providers across the web.

If shipping prices sound too good to be true, they probably are. By staying informed and cautious, we can protect our businesses and customers, and help maintain a fair logistics environment.

Awareness is the first step toward prevention.

‍

‍