• Skip to primary navigation
  • Skip to main content
  • Skip to footer
OpSec Security

OpSec Blog

  • Events
  • Partners
  • Brand
      • OpSec protects your entire brand continuum, covering every facet of your product’s life cycle. From conception through consumers, both online and offline, we provide you with valuable insight to protect your revenue streams, product integrity, and brand reputation.

      • Licensing
      • Fashion & Apparel
      • Luxury Goods
      • Consumer Products
      • Automotive
      • Industrial
      • Pharma & Medical Devices
      • Transaction Cards
  • Government
      • Working closely with key commercial partners, government agencies and security specialists, we have earned a reputation as innovators in combining digital solutions with optical and material sciences.

      • Revenue Protection & Tax Stamps
      • Security Foils & Labels
      • Vehicle Protection & SecureETags
  • OpSec Online
      • OpSec Online includes an industry-leading product and service line to help brands combat brand abuse across all online spaces.

      • Why Brand Protection
      • AntiCounterfeiting
      • AntiPiracy – Digital Media
      • AntiFraud – Phishing
      • AntiFraud – Malware
      • Partner Compliance
      • Online Brand Protection
      • IP Protection
      • AntiPiracy – NetResult Live Streaming Protection
      • AntiFraud – Dark Web & Cyber Intelligence
      • Managed Services
  • Resources
  • About Us
      • In a world getting more complex, OpSec helps ensure the integrity of goods and documents that build deeper and more profitable relationships.

      • Leadership
      • Associations
      • Careers
  • Contact Us

State of Michigan Tax Stamp Program

by OpSec Security

Case Study
You are here: Home / Case Study / State of Michigan Tax Stamp Program

When the State of Michigan Department of Treasury required a new solution to replace their traditional thermal tax stamp program, OpSec was able to provide a complete cigarette tax stamp solution for the state. The overall solution offered by OpSec provides the utmost in ease of use, speed, and accuracy – as well as fully electronic tax tracking and enforcement features.

Business Problem

When the State of Michigan Department of Treasury required a new solution to replace their traditional thermal tax stamp solution, OpSec was able to provide a complete cigarette tax stamp solution for the state, including:

  • The supply of digital cigarette stamps
  • Approved configuration of application machines
  • Cameras, scanners, and software to capture unique tax stamps; and related services for the state

This meant changes for the application method of tax stamps in the state with the payoff being tremendous amounts of information and visibility of the cigarette supply chain in Michigan. 

This would provide an opportunity for the Department of Treasury to fully maximize their tax collections relating to cigarette sales and to interact with the consuming public. 

The overall cigarette stamping/enforcement solution offered by OpSec was a two-pronged approach that provides the utmost in ease of use, speed, and accuracy – as well as fully electronic tax tracking and enforcement features.

Michigan Workflow

OpSec Solution

Implementation of the Michigan program was a large and complex process which meant working and communicating closely with all stakeholders in the industry. 

Implementing the project from the planning stage to ‘go live’ took just six months. This included design and manufacture of the new stamp, integration of the stamp format and third-party software (via API), intensive testing and qualification of stamping machines and development of the OpSec Contraband Watch Solution (CWS) solution.

Remaining old stamps were drafted out over several months as new application machines were commissioned at remaining wholesale sites.

APPLICATION PROCESS

Along with the OpSec-approved set of scanners, cameras, and software, the application machinery also collects cigarette data in real-time and high-speed application rates. The OpSec designed configuration: 

Michigan Application Workflow

As the roll-out of the stamping machines continued, data received from stamping sites confirmed speeds in excess of 1,000 packs per minute.

MOBILE AUTHENTICATION PORTAL

Specialized smartphone applications allow Michigan’s enforcement officials secure access to the OpSec InSightTM authentication portal, providing clarity of the supply chain and case reports on location.

Simply by scanning the QR code, officials can quickly investigate detail such as:

  • Stamp authenticity
  • Brand/manufacturer detail
  • Wholesaler name and PO number
  • Pack size

Support is provided by a virtual forensics team of experts for real-time counterfeit examination and on-the-spot certification.

CONSUMER ENGAGEMENT

The tax stamp program seized the opportunity to utilize the QR code to provide enforcement officers with tracking information via the mobile application. However, the QR code also enables a direct communication link between the Treasury and the public.

Whereas customs officials utilize specific secure mobile applications to track and authenticate the tax stamps, the public can interact with the QR code using any open QR code reading application.

Benefits of consumer engagement for Michigan include:

  • Promoting State-sponsored smoking cessation programs
  • Enabling concerned citizens to report under-aged smoking
  • Establishing a consumer “tip-line”
  • Educating the public on the dangers and impact to Michigan’s economy resulting from illicit tobacco sales

CONTRABAND WATCH SERVICES

Unlike any other tax stamp offering today, OpSec actively monitors the online market looking for counterfeit or simulated stamps.

Many vendors employ a reactive response to change their tax stamp security features after counterfeits are found by state enforcement personnel. OpSec assists clients to develop and employ a more proactive monitoring approach.

The dedicated services team and proprietary software applications comb numerous Internet portals and social media (B2B sites, trade boards, blogs, and internet stores) searching for potential counterfeit stamps from illicit trade markets worldwide.

Results

  • Additional information found to support ongoing investigations by Attorney General’s office
  • Proactive discovery of counterfeiting attempts with information provided to Law Enforcement and Treasury

Program Return on Investment

Michigan Tax Stamp ROI

BY THE NUMBERS

Michigan

About OpSec Security

In a world getting more complex, OpSec helps ensure the integrity of goods and documents that build deeper and more profitable relationships.

Related Post

Whirlpool Key Code

OpSec Security < 1 Min Read Apr 20, 2021

Whirlpool Genuine Products Protection

With $20 billion+ annual revenue, almost 100,000 employees and 70 manufacturing and technology re...

whirlpool

GM Opel CS

OpSec Security < 1 Min Read Feb 2, 2021

GM Europe Secures its Supply Chain with “Genuine GM Parts”

GM needed a solution that enabled field operators, dealers, servicing agents, investigators, and ...

GM

Valentino shoe

OpSec Security < 1 Min Read Dec 1, 2020

OpSec Security Helps Protect Valentino Icon by Shutting Down Global Counterfeit Operation

Understanding the importance of brand protection, Valentino has worked with OpSec since August 20...

Brand Protection, Counterfeiting, fashion

Footer

Careers

Be a part of a collaborative global team determined to fight counterfeits and build strong, lasting partnerships with our clients.

View Available Positions

Brand

  • Licensing
  • Fashion & Apparel
  • Luxury Goods
  • Consumer Products
  • Automotive
  • Industrial
  • Pharma & Medical Devices
  • Transaction Cards

Government Applications

  • Revenue Protection & Tax Stamps
  • Security Foils & Labels
  • Vehicle Protection & Secure eTags

© 2021, OpSec. All rights reserved. Modern Slavery Statement Privacy Terms Of Use Contact Us

Facebook Twitter LinkedIn YouTube Instagram