Stamping Out Counterfeit Stamps

Whether you’re purchasing a bottle of prosecco for a celebration or posting letters to a distant relative, stamps play an integral role in making sure things run smoothly. With criminals becoming more resourceful, the issue of products being imported without paying tax duty and parcels being sent without paying for postage are causing havoc for companies and governments in the UK and beyond.

To stop counterfeiters in their tracks, we need to tackle the problem of fake tax and postage stamps head-on. Let’s find out how to stamp out counterfeit stamps.

Tax Stamps

What Is A Tax Stamp?

A tax stamp or revenue stamp is a method of verifying whether or not a payment of tax has been made (or is due to be made) on material goods. They were first introduced to the UK in 1694 in accordance with the Stamp Act, which was similar to the Dutch model of taxation at the time. Since then, tax stamps have come a long way, and are a vital element of ensuring product authenticity for the billions of pounds worth of goods which enter the country each year.

Counterfeit Tax Stamps: Issues That Stick

As the amount of tax paid on items like alcohol or cigarettes has increased, so too have the potential profits for counterfeiters. Tax stamps are big business for forgers, since they are often seen as a mark of authenticity and commonly used as anti-tamper seals, which increases the value of the stamps. Producing replica tax stamps allows illegal suppliers to infiltrate supply chains and sell their products all over the world whilst remaining undetected, potentially exposing thousands of unsuspecting customers to hazardous or poorly made goods.

Postage Stamps

What Is A Postage Stamp?

Postage stamps are small adhesive tags issued by the post office to cover the cost of transporting letters, parcels and packages. The world’s first adhesive postage stamp was the ‘Penny Black’ in 1840, which made the price for posting a letter the same flat rate of a penny no matter the distance it would have to travel.

Counterfeit Postage Stamps: A Mail-icious Problem

Many important documents, such as cheques, bank statements, medical information and personal identification, are all sent via the post. Ensuring that letters and packages remain secure throughout their journey is critical to the protection of personal data and the timely delivery of post to our doors. Counterfeit postage stamps are becoming increasingly common in the UK, many of which originate from countries like China and travel into the country via supply chain breaches before they are discovered. The problem was so egregious that in 2022, the Royal Mail introduced barcoded stamps in an attempt to limit the number of counterfeits being used to avoid paying for postage. As of 2023, it is now no longer possible to send a parcel or letter without a barcoded postage stamp.

What’s The Risk Of Counterfeits?

Whilst they might not seem like much of a problem at first, counterfeit stamps have a huge impact, although the effects depend on the type of stamp. Fake tax stamps take money away from governments and expose customers to potentially dangerous items, damaging brand image in the process. Meanwhile, using counterfeit postage stamps can cause letters and items sent through the post to be lost or personal information to be exposed. Until recently, anyone using a fake postage stamp was liable to a £5 fine.

How To Stamp Out Counterfeits Once And For All

In order to keep personal information safe and ensure tax duties are being paid, individuals, businesses and governments need to work together to stay vigilant for counterfeit stamps. Fortunately, there are some telltale signs that can alert you to a potential fake before you purchase postage stamps or a tobacco or alcohol product:

• Quality – the stamp is damaged (e.g. tears or rips) or has a rough surface.
• Price – sold at a much lower price than typical stamps, or in unusual quantities.
• Iridescent overprint – shiny text across the stamp is faded or missing.
• Envelope or backing paper attached to the back.
• Damaged/removed security ovals.

Whilst these signs can help you visibly identify some counterfeits, they are not always reliable.

Making A Lasting Mark On Stamp Anti-Counterfeiting

Stamps are key to the smooth operation of many important services in the country. Without proper anti-counterfeit protections, millions of people are put at risk every day. To find out how Quantum Base is helping to tackle the problem of counterfeit stamps with our revolutionary Q-ID® Optical technology, get in touch with one of the team today, and join us in creating a world without fakes.