Insurance fraud scam against U.S. Postal Service targets Madison area

MADISON – An insurance fraud scam using the U.S. Postal Service (USPS) has “begun to trend in Madison,” according to Borough Council President Astri Baillie.

Within a few days, residents may receive a letter from the USPS Domestic Accounts Payable Branch.

The letter will be addressed to the same unknown party, but mailed to the resident’s address.

The letter from the USPS Accounts Payable Branch “will contain instructions for processing a lost or damaged article claim, and reference an ‘article number’ which will match the tracking number on the previously received package,” explained Baillie.

The fraud revolves around the scammer purchasing insurance for a package with minimal value, like the index cards, then mailing it to a random address with the intent of filing a false lost article claim.

The U.S. Postal Inspector Service is familiar with the scam, Baillie advised.

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The ridiculous thing is that the USPS insurance is a scam anyway, they never pay.