"Canada Post buries its head in the sand."

"Canada Post buries its head in the sand."

Counterfeit Chicanery: The Unsavory China-Canada Fake Stamp Saga

By Tristan Pelletier, Investigative Resident, Our Site

Dive into the shady world of Chinese counterfeiters, who aren't merely reproducing Canadian currency. They're peddling fake stamps, near-perfect replicas of the latest releases from Canada Post, at a pittance on various Chinese websites.

"A whopping 99.99% of folks can't discern these stamps from the genuine deal, even Canada Post experts themselves," says Richard Gratton, a seasoned philatelic sleuth and vice-president of the International Association of Philatelic Experts.

Canada Post stands accused of turning a blind eye. According to Gratton, "They're getting fleeced annually by these Chinese counterfeiters, to the tune of several million dollars." The corporation reported a staggering loss of $748 million for the 2023 fiscal year, but declined to disclose specific losses related to counterfeiting.

In an undercover operation, we purloined a booklet of 50 counterfeit stamps from a Chinese platform, part of the "Terre de nos aïeux" series freshly uncorked by the Crown corporation. Unabashed peddlers openly advertise the merchandise's provenance—the package's tracking number points to China, courtesy of the Chinese company Yanwen. These counterfeit stamps winged their way to us in a week, for under half the price of the bona fide ones.

A 90% Markdown

"If you're buying in bulk, the Chinese sell them for a scant 10% of the face value," muses Gratton. A $1.24 stamp, for instance, goes for a mere 15 cents.

Gratton also showed us counterfeit stamps mimicking a more recent series, released by Canada Post in January. He believes this is the fourth wave of Canadian stamps pirated by Chinese pretenders since 2021. With each new iteration, they're upping their game. The latest counterfeit stamps boast a "security band" reflecting bright yellow under UV, a tricky security measure that was previously uncopyable.

To the naked eye, there's no difference between them and the genuine ones. "You've got to magnify the stamp 100x to start spotting the discrepancies," explains Gratton. Upon magnification, you'll see tiny dots in the numbers of the counterfeit stamps, an indication that they were produced using an offset printer, whereas Canada Post employs a more sophisticated photolithography method.

A $300 Million Swindle

Exploring the counterfeit stamp market, it's no wonder these swindlers are drawn to it. Despite its decline, Canada Post peddles $300 million worth of stamps annually, catalyst for this illicit business. However, Canada Post asserts it's the only online retailer authorized to sell Canadian stamps online. The corporation remains tight-lipped on counterfeiting-related losses and has yet to disclose any proactive measures in this regard.

Those with information on counterfeit stamps are advised to contact the police. In an email to The Press, Canada Post maintained: "We collaborate with law enforcement agencies to stamp out counterfeiting."

Eric Li, a business professor at the University of British Columbia's Sauder School of Business, has delved into the counterfeit luxury goods scene in China and Hong Kong. Li opines that Chinese counterfeiters face minuscule chances of Canadian legal repercussions and even fewer from the Chinese government.

Li proposes that Canada Post reassess the utility of stamps beyond 2025, a nearly bicentennial construct, while competitors like FedEx, UPS, and Amazon embrace a more secure barcode system. "These companies' consumer-friendly tracking systems have significantly contributed to their success," Li contends.

Richard Gratton fears that Canada Post might ditch stamps for an online postage system in the future.

The disheartened stamp collector admits, "In the US, the US Postal Service places emphasis on raising awareness about counterfeit stamps, and now they can seize and investigate mail adorned with counterfeit stamps." Yet, here, "Canada Post keeps mum about it, as if it doesn't exist," Gratton laments.

1. The counterfeit stamps, mimicking the latest French-themed series from Canada Post, were purchased from a Chinese platform at a significant discount, despite being nearly identical to genuine stamps.
2. The latest counterfeit stamps, such as those from the "Terre de nos aïeux" series, feature a complex security measure, a bright yellow reflective "security band", which is challenging to reproduce, much like the counterfeit French currency.
3. Richard Gratton, a philatelic expert, believes that the same Chinese counterfeiters responsible for the proliferation of fake stamps in Canada's provinces might also be producing counterfeit French currency, owing to the technological advancements they have made since 2021.

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