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Pushing the Envelope Blog

Deterring Fraud by Detecting Fraud

Date: 02/20/23 | Category: OIG

The Postal Service Office of Inspector General works to prevent and detect fraud and abuse in U.S. Postal Service programs. We do that in two ways: Our auditors examine postal programs to make sure there are safeguards that make fraud more difficult, and our agents investigate many types of fraud targeting the Postal Service once they occur.

Sometimes a fraud in one area means there is even more to uncover. In 2019, Postal Service managers in the Michigan area reported that people were shipping 10 to 20 parcels at a time to the same set of addresses, while insuring each package for $300. The managers suspected criminal activity and contacted the OIG. We investigate fraud related to customer insurance claims for mail and packages.

We found one suspect conspired to submit more than 1,000 claims to the Postal Service for reimbursement of lost or damaged packages. He and his conspirators made the claims using 40 different names and falsely said that the packages contained valuable items. In reality, the contents were usually inexpensive plastic picture frames. The total value of the fraud on the Postal Service was more than $200,000.

We also discovered that the U.S. Department of Labor, the FBI, and the State of California were investigating the same suspect for more than $2.2 million in pandemic-related fraud. Last August, the suspect pleaded guilty to the postal and non-postal frauds, and earlier this month he was sentenced to more than eight years in prison.   

If you suspect someone is committing fraud against the Postal Service, contact our Hotline. If you have suggestions on how the Postal Service can make improvements to prevent fraud, let us know in the comments below.

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Your Name
Ajay
Apr 28, 2023
Your Comment
These are some nice blog post thanks for sharing
Your Name
Lenny
Apr 15, 2023
Your Comment
One of the biggest sources of fraud that I see is through the misuse of Priority mailing supplies, misuse of Media Mail, and misuse of tracking labels. I sort over 1000 packages a day, and there are about 3-4 that I catch and mark up as postage due.

The most recent thing is to slap a prepaid "Flats" label on a package, then attach a Label 400 tracking number. The customer pays only a dollar something, but tries to get the tracking service that a package rate offers. The package clearly does not qualify to be sent as a large envelope/flat.

I catch brown wrapped Priority boxes all the time, and unless they already have part of the box showing, there is no way for us to confront the shipper to tell them that they are defrauding us. Although it is obvious by the shape, size, and feel of the boxes. There should be a way to allow us to inspect these packages by cutting just enough of a piece to verify but not enough to reveal identifying information. It is extremely frustrating knowing what they are doing and there is nothing I can do about it. Anytime I receive one for myself, I will report it to ebay.
Your Name
Tahsin
Mar 10, 2023
Your Comment
I went through your blog, it is quite interesting, would really like to see more such blogs with amazing content and information. Keep sharing more such blogs.
Your Name
Murtada
Mar 9, 2023
Your Comment
I went through your blog, it is quite interesting, would really like to see more such blogs with amazing content and information. Keep sharing more such blogs.
Your Name
Ignacio Rangel
Mar 7, 2023
Your Comment
My package with my credit card arrived to my hose cut opened and it is not the only time. We had order more things trough this last 2 years and been reporting the missing packages but there’s not respond back.
  
Your Name
OIG Webmaster
Mar 8, 2023
Your Comment
Thanks for your message. We are an independent agency of the Postal Service and unfortunately can't help with lost or damaged mail. You can file a claim with the Postal Service at https://www.usps.com/help/welcome.htm
Your Name
Amanda LeRoy
Feb 27, 2023
Your Comment
I sent my mother an IPhone for her birthday. The package sat at the post office for over three weeks. She finally received it and the package was cut opened and tapped with an empty iPhone box and no iPhone. I’m behind pissed!! They shouldn’t be able to get away with stealing packages!
Your Name
mICHAEL c hALL
Feb 21, 2023
Your Comment
mY MAIL HAS BEEN OPEND AN TAPED BACK TOGETHER.
  
Your Name
glennmartin
Feb 23, 2023
Your Comment
could have been misdelivered and opened by mistake and taped and put back in the system. Praise God u got it!
  
Your Name
Amanda
Feb 27, 2023
Your Comment
Same happened to me, it was cut opened and the iPhone I sent my mother was stolen and they left the iPhone box. They retaped it and shipped it completely damaged. It sat at the post office in NJ for a month! They should not get away with this. Seems to happen quite frequently! If nothing happens I’m contacting the fbi or the news.
Feb 21, 2023
Your Comment
In the IMPORTANT - PLEASE NOTE section, in the last sentence, the word “out” should be “our”.
Your Name
James Crook
Feb 20, 2023
Your Comment
Why I haven't received the check that was sent out to me from my school on the 31st of January 2023
  
Your Name
glennmartin
Feb 23, 2023
Your Comment
Happens often but very difficult to trace a piece of maill. Sorry this does happen however it is not to late to notify the school and attempt to pick up the information.