NCCIA Arrests Pakistani Accused in $126m US Postal Fraud

Pakistan’s National Cyber Crime Investigation Agency has arrested a Pakistani national in Lahore over an alleged online counterfeiting operation that US prosecutors say caused losses exceeding $126 million to the United States Postal Service. The suspect was detained after investigators conducted an extensive search across several parts of the country.

The case centres on LabelsBank.com, an unauthorised website allegedly used to sell counterfeit US postage labels between August 2023 and September 2026. American authorities claim that the platform supplied more than 5.1 million fraudulent labels to over 5,200 customers, allowing parcels to be shipped at prices substantially below legitimate postal rates.

According to investigators, the labels were commonly offered for about $2 each without properly accounting for a package’s weight, dimensions or destination. The alleged loss figure represents revenue and shipping costs incurred by the US Postal Service rather than the amount collected through the website’s sales.

An additional director of the cybercrime agency’s Lahore Zone announced the arrest during a press conference. He said eight specialised teams were formed in Punjab, Islamabad and Sindh, while investigators conducted raids at 35 locations and questioned 47 people during efforts to trace the suspect and examine the suspected network.

Officials said the investigation included an analysis of 122 call-data records, 50 mobile-device identification tracking reports and recordings obtained from 120 cameras. Artificial intelligence and other digital forensic tools were also used during a locator operation that continued for approximately 10 days.

The suspect had previously been indicted by a US federal grand jury in Florida. American prosecutors accused him of operating the website and selling counterfeit postal labels, while a reward had also been announced for information assisting authorities in locating him. The allegations remain subject to judicial proceedings, and no conviction has been reported.

Pakistani investigators are now examining 16 bank accounts allegedly connected to the operation. Seven were reportedly controlled by the suspect, while the remaining accounts were associated with his brother, wife, sister and aunt. Authorities are investigating whether these relatives or other individuals knowingly assisted with payments, website operations, order processing or distribution.

The financial inquiry is expected to focus on tracing proceeds, confirming the number of transactions and establishing the full scale of the alleged network. Investigators will also need to determine whether the suspect will face proceedings in Pakistan, be subjected to an extradition request from the United States or become part of a broader cross-border cybercrime prosecution.