USPSNEWS@WORK

NAPS President Vincent Palladino dies: Longtime NAPS officer was in his 13^th year as president

National Association of Postal Supervisors (NAPS) President Vincent Palladino died unexpectedly at his Arlington, VA, yesterday. He was 69. Palladino was elected to his seventh consecutive two-year term as president of NAPS at the organization's 59th national convention in Kansas City, MO, in August.

Calling Palladino a close friend and ardent advocate for his membership and the Postal Service^TM, PMG Jack Potter said Palladino represented NAPS members well.

"I also knew that when I needed an informal opinion on postal issues, I could always turn to Vince. I valued his experience, perspectives and candor," Potter said. "He was devoted to his family, a mentor to many and a friend to all."

"Vince Palladino's passing is a loss not only to NAPS, but to the entire postal community," said NAPS Executive Vice President Ted Keating, who assumes the NAPS presidency. "Vince possessed a keen insight into the problems facing the Postal Service and didn't hesitate to voice his opinion on how they might be addressed."

Palladino represented more than 35,000 active and retired postal supervisors, managers and postmasters. Before being elected NAPS president in 1992, he served as the organization's executive vice president for six years. He testified before the President's Commission on the U.S. Postal Service in 2003, suggesting new ways the Postal Service could operate and still bring in money.

Palladino began his career as a letter carrier in Staten Island, NY, in 1960. He was later promoted to foreman of mails and then station manager in 1970. Prior to joining the Postal Service, Palladino served in the US Air Force for four years.

FY '04 a fiscal success: Surplus revenues tempered by shifting mail volumes

The Transformation Plan is working.

That's the word from the Board of Governors year-end meeting, where it was reported the Postal Service achieved a surplus for the second consecutive fiscal year, with a net income of $3.1 billion on revenues of $69 billion.

Postmaster General Potter said we've achieved USPS® business goals in 2004 to improve service, reduce costs and continue to build our business.

The good news was tempered by comments that marketplace forces are changing the character of the mail and could threaten Postal Service financial viability in future years with First-Class Mail® pieces projected to fall below Standard Mail® pieces as the largest volume product. Chief Financial Officer Richard Strasser said this shift in mail mix to lower revenue-per-piece mail classes will result in shrinking margins which are used to maintain universal service.

Strasser told the Board that total revenue reached $69 billion - an increase of $265 million over last year. First- Class Mail service brought in revenue of $36.4 billion, Standard Mail service, $18.1 billion and other products and services, $14.5 billion.

Total mail volume rose nearly 4 billion pieces to 206 billion, mostly in Standard Mail pieces. First-class Mail pieces declined by 1.1 billion pieces, for a third straight year of decline.

Expenses were $900 million below plan and debt was reduced to $1.8 billion, down from a high of $11 billion two years ago. Productivity increased for the fifth consecutive year, while workhours were reduced by 21 million.

Potter noted that USPS will continue to pursue its Transformation Plan strategies, leveraging resources to build the business.

"While these strategies have resulted in historic productivity levels and cost savings over the last few years, we must recognize that additional efforts to take costs out of the system will require fundamental structural changes," Potter said.

The Transformation Plan will help USPS secure a future for universal mail service at affordable rates and give it the tools to protect regular mail and ensure a sound national system well into the future. Take a look at the progress we're making in implementing the plan - go to www.usps.com; click on About USPS & News; then Organization Information, then Office of Strategic Planning, then Transformation Plan, then Transformation Plan Progress Report - November 2004.

USPS orders 300,000 scanners: Scanning the horizon

The Postal Service will order more than 300,000 intelligent mail devices from Motorola, under a three-year contract awarded to the company recently. The devices will replace the mobile data collection device used by carriers and other employees for Delivery Confirmation^TM service and other applications.

The 16-oz. intelligent mail scanners will be equipped to read signatures and the varieties of USPS barcodes and labels that capture information about mail as it moves through the distribution network.

"This new generation of handheld scanning devices will help us provide postal customers with information about their mail - information they can use to better manage resources and increase responsiveness to their customers," says Senior Vice President of Intelligent Mail and Address Quality Charlie Bravo.

Deployment will take place from summer 2005 through 2006.

Gift cards galore: Starbucks joins NetPost CardStore gift card service

Brighten the holiday season for someone special with a gift card tucked inside a personalized greeting created purchased online at NetPost® CardStore - www.usps.com/cardstore.

Choose a greeting from the full gallery of images - or upload your own photos for a truly unique card. Then pick the perfect gift card in amounts of $25 to $200 from stores like Bed, Bath & Beyond, Circuit City or Lowe's, participating grocery and drug stores, Barnes & Noble, Starbucks and restaurants including Chili's, Corner Bakery Café, Macaroni Grill, On The Border and Big Bowl Asian Kitchen. USPS custom prints your cards and mails them the next business day.

With NetPost gift cards, you're eligible for an Employee Deals discount. Enter "GiftCard" in the promotion code, recalculate your charges and save $2.50 each time you order a gift card worth $25 or more. Greeting cards only? Enter "Employee" in the promotion code and recalculate for up to 62 percent off the purchase price.

Walk a mile in her shoes: Postal Ambassador Gina Mendoza-Telck to appear in Prevention magazine

When the American Podiatric Medical Association released a report saying that 75 percent of Americans experience foot pain at some time in their lives - and that women were four times as likely as men to develop it - Prevention magazine decided to interview five women whose careers "keep them on their toes."

When it comes to pounding a beat, few jobs require more walking than a city letter carrier. Prevention chose Postal Ambassador Gina Mendoza-Telck to be one of the women featured. Mendoza's interview will appear in the April issue.

Discovering NSAs: Financial firm adopts negotiated service agreement

Discover Financial Services and the Postal Service have entered into a negotiated service agreement (NSA) that encourages more use of the mail and benefits both organizations.

Under the terms approved by the USPS governors, Discover will earn lower First-class Mail rates for volume in excess of 405 million pieces in the first year of the agreement. In exchange, Discover will accept electronic information about undeliverable-as-addressed First-class Mail in lieu of receiving the actual mail. This will result in significant cost savings for USPS.

"NSAs are one of the important business strategies outlined in our Transformation Plan," said Pricing and Classification Vice President Stephen Kearney. "These agreements allow us to do what millions of companies and organizations around the world do - work individually with customers to develop pricing and service incentives that benefit both parties and ultimately, all customers."

Safety in numbers: Fewer accidents mean safer employees

Since 2001 when USPS began using Occupational Safety and Health Administration's Occupational Injuries and Illnesses (OII) program to track safety performance, Olls have been reduced by more than 25,000 incidents. That's a credit to safety and every employee who follows safe work practices.

Increased safety awareness has led to a decline in motor vehicle accidents, too. There were nearly 3,000 fewer accidents in 2004 than in 2001.

Total them all up to get the big safety picture. In 2001, USPS had almost 146,000 total accidents. By 2004, that number was down to just over 109,000 - about 37,000 fewer accidents.

Working safely - it's something we can all live with.

Head for the mall

Magazine Mall has thousands of sports, fitness, entertainment, business, news, games, political titles and many more. Shoppers save up to 85 percent on holiday gifts. USPS employees receive an additional 15 percent off the sale prices. To order, go to www.usps.com/magazines, select the magazines you want and pay by check, major credit card or money order.

Customer Relations

Mail Alert

The mailings below will be deposited in the near future. Offices should honor the requested delivery dates. Mailers wishing to participate in these alerts, for mailings of 1 million pieces or more, should contact Business Service Network Integration at 202-268-2225 at least 1 month preceding the requested delivery dates. The Postal Service^TM also offers electronic Mail Alerts via ADVANCE. For more information, see the ADVANCE Notification & Tracking System Technical Guide on the Internet at http://www.ribbs.usps.gov/files/advance/ADVTECH.PDF or contact the National Customer Support Center at 800-458-3181.

NATIONAL CONSUMER PROTECTION WEEK

National Consumer Protection Week: Work-at- Scams - They Just Don't Pay!

February 6-12, 2005, has been designated National Consumer Protection Week (NCPW). The US Postal Service^® Consumer Advocate's office and the US Postal Inspection Service are partnering to educate consumers about fraudulent work-at- schemes and to provide consumers with the tools and information needed to combat this fraud. During NCPW, other federal, state, and local consumer protection agencies - together with consumer organizations and industry associations - also are launching consumer protection and education efforts around the country. The Postal Service^TM campaign for 2005 carries a simple but powerful warning: Don't open your door to work-at- fraud.

Work-at- Fraud

The opportunity to work from is becoming a popular and attractive option for many - from stay-at- moms to college students to retirees. According to the 2000 Census, more than 4 million people in the United States work at every day, and the numbers are increasing. So it should come as no surprise that work-at- scams offering jobs that pay "big financial rewards" have also grown in popularity.

Although there are genuine jobs working at , many "offers" are bogus. You've seen the ads: Earn $50 to $200 per hour at ! Start Your Own Business and Make $1000 a day! Envelope Stuffing Jobs Now Available!

Whether the offer comes by phone or e-mail, appears in a flyer or newspaper ad, or arrives in the mail, thousands of people respond to these ads. But not all work-at- opportunities deliver on their promises. Work-at- schemes will not guarantee regular salaried employment, and almost all require the consumer make an "up-front" investment of money for products or instructions before the consumer gets an explanation of how the plan works. And the "work" promised often continues the fraud by getting other victims involved. Consumers deceived by these scams have lost thousands of dollars, in addition to their time and energy.

Common Work-at- Schemes

Con artists know working at sounds attractive. That's why they place such ads. Here are some of the more common fraudulent work-at- opportunities:

• Envelope stuffing: In this scam, promoters offer a money-making opportunity stuffing envelopes at - for a "small fee." But victims do not receive a job. Instead, the victims pay the promoter who then provides them with the details of the scheme. The details are simple: contact other potential "employees" with an offer to make money stuffing envelopes and then sell the new recruits the details of the scheme. Typically, there is nothing to stuff. The fraud depends on the continuous recruitment of people to whom the sponsor can offer the same plan. The reality is that the envelope stuffing process has become a highly automated and mechanized operation. Businesses use sophisticated computer software and mail-processing equipment to generate addresses and insert letters into envelopes. This eliminates any profit potential for an individual doing this type of work at . Postal Inspectors know of no work-at- envelope stuffing promotion that ever produces income as promised.

• Product assembly and craft work: These programs often require victims to buy supplies and instructions for assembling simple toys or other products in their . The victim spends many hours producing items such as baby booties, plastic signs, or toy clowns for a company that has promised to buy the products. However, after the victim has purchased the supplies and equipment and has performed the work, the promoter often decides not to pay because the work does not meet certain "quality standards." Unfortunately, with these promoters, no work ever meets their "standards," and the victim is left with merchandise that is difficult or impossible to sell. With no market for the product, the victim wastes time and money.

• Reshipping: These scams involve the receiving and reshipping of merchandise often ordered online to locations that are usually overseas. The work-at- shipper is told that he or she can make substantial amounts of money by receiving, repackaging, and then mailing the merchandise to the foreign addresses. However, the shipper is unaware the merchandise has been paid for with stolen or fraudulent credit cards. In effect, the shipper becomes part of a fencing operation by receiving stolen goods and then mailing the goods to the promoter. The promoters, often based in a foreign country, are outside the reach of US law enforcement and are able to cover their tracks to evade capture. The victim, however, is easily tracked and implicated in the crime.

This fraudulent work-at- scam presents other drawbacks. Individuals attracted to work-at- employment through advertisements posted on popular Internet job Web sites often are required to provide personal information. This means the prospective "employee" might be asked to submit Social Security Number, date of birth, and sensitive bank account information. Once "employees" are hired, they immediately begin receiving packages for reshipping at their residence. Unfortunately, the promoter now has personal information about the new "employee" which often is later used in identity fraud.

Another drawback is the "pay." Payment to employees usually arrives in the form of a third-party cashier's check, rather than a regular paycheck. The check often is larger than the payment due to the employees for their reshipping services. The employee is instructed to cash the check and electronically forward the excess amount to an overseas bank account. Ultimately, the bank will discover the cashier's check is bogus, and the victim will be liable for repaying the full amount of the check. At this point, "employees" realize they have not only fallen victim to a scam, but that the operators of the scam now possess their personal information.

• Multilevel Marketing: Multilevel marketing, a direct sales system, is a well-established, legitimate form of business often promoted as a work-at- opportunity. Many people have successfully sold the products of reputable companies to their neighbors and co-workers. These people are independent distributors who sell popular products and also recruit other distributors to join them. On the other hand, illegitimate pyramid schemes can resemble these legitimate direct sales systems. An obvious difference is that the emphasis is on recruiting others to join the program, not on selling the product. For a time, new recruits who make the investment to buy product samples keep money coming into the system, but very few products are sold. Sooner or later, the people on the bottom of the pyramid scheme are stuck with a saturated market, and they cannot make money by selling products or recruiting. When the whole system collapses, only a few people at the top have made money - and those at the bottom have lost their investment.

How Does the Postal Service Help to Prevent Mail Fraud Scams?

The Mail Fraud Statute is the oldest and most effective consumer protection statute, and Postal Inspectors have been using that statute to preserve the integrity of the US Mail since the law was enacted in 1872. Postal Inspection Service efforts have combined vigorous enforcement of the law with public education, consumer awareness, and crime prevention programs. Postal Inspectors work with local, state, federal, and international law enforcement agencies - as well as a variety of bank and credit card issuers, financial institutions, retail merchants, credit bureaus, and other industry sources - to help prevent all types of mail fraud schemes and to educate consumers.

What Can You Do to Protect Yourself From Becoming Work-at- Fraud Victims?

Ask questions! Every year, thousands of people and businesses are victimized by fraudulent schemes. In general, you should be skeptical of any offer that sounds "too good to be true." Legitimate work-at- program sponsors should provide information in writing about the program they are offering. Postal Inspectors offer these tips to help you evaluate questionable offers:

• Closely examine the ad or offer. The company may not be offering to employ you directly, only to sell you training and materials and to find customers for your work. A legitimate company will be happy to give you information about exactly what you will be doing and for whom.

• Check out the company. Research work-at- opportunities through online sources or in the "Work-At- Sourcebook" and other resources that may be available in your local library. These resources provide good advice and list legitimate companies that hire people to work for them at . Also check out the company with the Better Business Bureau, state Attorney General, or local consumer protection agency.

• Steer clear of "start-up" fees. Fraudulent promoters often ask for upfront payments for software, business kits, supplies, membership fees, or lists of hiring companies. Find out what the total cost is for the work-at- program and what you will get for your money.

• Know the refund policy. If you must purchase equipment or supplies, ask if, and under what circumstances, you can return the material for a refund.

• Find out if there is really a market for your work. Claims that there is a market for work such as envelope stuffing and craft making may not be true. If the company says it has customers waiting, ask for the names of the customers and contact them to confirm. Get references for other people who are doing the work. Ask the references if the company has kept its promises.

• Be suspicious. Beware of advertisements that make unbelievable claims about job opportunities. Particularly be wary of any job offer that doesn't pay a regular salary or involves an overseas company.

• Take your time. Don't be pressured into making a quick decision. Con artists make a living on their victims' poor judgment. Be smart. Seek advice and double check the "facts."

Don't believe that you can make big profits easily. Operating a -based business is just like any other business - it requires hard work, skill, good products or services, and time to make a profit. There is no easy way to wealth. A consumer's good judgment is the first, last, and best line of defense against the con artist.

Who Should You Call if You Are the Victim of a Work-at- Scam?

If you have spent time and money on a work-at- program you believe may not be legitimate, you should contact the company and ask for a refund. If a refund is not forthcoming, tell the promoter you plan to notify law enforcement officials. Keep careful records of everything you do to recover your money. Document phone calls, keep copies of all paperwork such as letters and receipts, and record all costs involved. You should also file a complaint with the following:

• Postal Inspectors. Responsible for enforcing the Mail Fraud Statute. You can file a fraud complaint at the local Post Office^TM, by calling 800 FRAUD IS (800-372-8347) or online at www.usps.com/postalinspectors.

• The Federal Trade Commission. Works for the consumer to prevent fraud and deception. Call 877-FTC-HELP (877-382-4357) or log on to www.ftc.gov.

• The Better Business Bureau at www.bbb.org.

• Your state Attorney General's office.

• Your local consumer protection office.

• The publication in which the ad appeared. Contact the publication's advertising manager.

What is the Postal Service Doing for National Consumer Protection Week?

Postmasters and Facility Managers

Postmasters and facility managers are encouraged to join in this annual consumer awareness effort by sponsoring or supporting local activities during NCPW, February 6-12, 2005.

District Consumer Affairs and Claims Manager

The district Consumer Affairs and Claims manager should serve as a consultant and resource for postmasters and managers planning NCPW activities. The district Consumer Affairs and Claims office also serves as the clearinghouse for additional information and materials.

Getting Started

Many of you are old hands at arranging local community events. Nevertheless, the following is a list of guidelines to keep in mind as you plan your program. Remember to use leverage - of time, people, and resources - to make your job easier and to increase your results.

• Start early. It takes time to put together a team, agree on a concept, implement plans, invite guests, publicize events, and coordinate the participation of others. The sooner you begin the more options you are likely to have.

• Create a planning committee to develop and coordinate your event or activities. Many hands not only make light work, they bring ideas and perspectives that can produce better results.

• Involve your local Postal Service team early in the planning process. Your local Postal Inspector is an expert on fraud prevention and can be a key participant in any event. The Area Public Affairs and Communications team can help with media outreach and publicity. Headquarters Government Relations representatives can help invite local elected officials to participate, and your district Consumer Affairs team can provide ideas and support.

• Join the crowd. After all, this is National Consumer Protection Week. Find out if other organizations or agencies are planning events and see if they would like Postal Service participation. Local media might even be planning special consumer segments. And public access channels might be thrilled to run the Inspection Service Work-at- Scams: They Just Don't Pay! video as a public service.

• Realize that small is good, too. Perhaps flyers and a video in the office lobby are all you have time for.

• Finally, think about your audience. In your community, how do you reach the elderly, the unemployed, the under- employed, and others who are most vulnerable to the "make big money at " pitch?

Suggested Activities

Listed below are suggested activities to highlight the week's event:

• Have a NCPW kick-off and open house. Show the Work-at- Scams: They Just Don't Pay! video produced by the Postal Inspection Service. All Post Offices will receive a VHS copy of this short film via a direct mailing similar to what occurred with the Dialing for Dollars investment fraud prevention tape in October. The VHS tapes will be mailed out in advance of NCPW. You can order a DVD version at 800-STAMP-24 (800-782-6724) or online at www.usps.compostalinspectors after February 6, 2005. Invite a local expert to speak. A local Postal Inspector would be perfect, but a representative from a consumer advocacy group or an appropriate regulatory body would also be good.

• Partner with other federal agencies, community groups, educational institutions, and businesses to sponsor educational workshops or seminars for consumers with special needs.

• Hold a joint press conference with another consumer agency and include a local Postal Inspector. The Postal Inspector can discuss work-at- fraud both from a national and a community perspective.

• Work with a local Postal Inspector to inform senior citizens about work-at- schemes. Hold seminars at local retirement communities. Postal Inspectors can discuss recent fraudulent schemes and steps to prevent older Americans from becoming victims.

• Provide your Postal Service employees with information about NCPW activities planned for your area.

• Set up a booth at a busy shopping area and distribute fact sheets about work-at- fraud and other consumer information. Show the Work-at- Scams: They Just Don't Pay! video.

• And, while you are at it, let customers know about the other consumer services offered by the Postal Service, such as the new Internet hold, redelivery, and carrier pickup services, and ReadyPost^® products. Suggest customers visit www.usps.com.

Event Planning Checklist

When planning National Consumer Protection Week events, keep the following suggestions in mind:

• Begin planning early.

• Contact your local Postal Service team - Postal Inspectors, Public Affairs and Communications managers, Consumer Affairs and Claims managers, and Government Relations representatives - to see how they can help support and participate in the work-at- fraud prevention events in your city.

• Set a date.

• Secure participants.

• Acquire posters, videos, fact sheets, brochures, and other supplies for the event.

• Prepare a special pictorial cancellation, if applicable.

• Secure staging and sound equipment, if applicable.

• Plan signage, including a podium, sign, and banners.

• Launch a local publicity campaign using the materials suggested in this article.

• Draft a sequence-of-events agenda and speaker remarks.

• Plan retail opportunities (i.e., booth, bag stuffers, etc.)

• Prepare ceremony programs and invitations.

Postal Brochures Useful for National Consumer Protection Week

The work-at- information provided in this Postal Bulletin article, fraud-prevention publications and booklets, and the US Postal Inspection Service video are among your most important communication tools to educate the public about work- at- scams.

Following is a list of Postal Service publications that may be useful as handouts for customers during NCPW. They also serve as good resource material for postmasters and managers when preparing for the week's events.

The publications are available in PDF format on the Postal Service PolicyNet Web site. Go to http://blue.usps.gov/cpim and click on PUBs. The publications are also available on the Internet at www.usps.com; click on About USPS & News, then Forms & Publications, then Postal Periodicals & Publications, and then Publications (either PDF Format or Text Format).

Note: The sites contain several publications that are out of stock and cannot be ordered from the MDC. These include Publication 280, Identity Theft, Safeguard Your Personal Information; Publication 281-S, No Muerda el Anzuelo (Don't Bite the Hook, fraud by phone and mail); and Publication 546, Sweepstakes Advertising. The Postal Inspection Service DVD titled Work-at- Scams: They Just Don't Pay! will be available for individual customer orders starting Monday, February 7, 2005. The DVD can be ordered directly from the Stamp Fulfillment Center by calling 800-STAMPS-24 or online at www.usps.com/postalinspectors. Postmasters will receive a direct mailing of a VHS copy in advance of NCPW.

You can also order these publications from the Material Distribution Center (MDC) by using touch tone order entry (TTOE): Call 800-332-0317, option 2.

Note: You must be registered to use TTOE. To register, call 800-332-0317, option 1, extension 2925, and follow the prompts to leave a message. (Wait 48 hours after registering before placing your first order.)

Use the following information to order these publications:

NCPW Poster

The following poster is included with each Work-at- Scams: They Just Don't Pay! DVD. It can also be downloaded at http://www.usps.com/postalinspectors.

- Field Support and Integration, Office of Consumer Advocate, 12-23-04

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