Welcome to scamwarners!
I'm going to be a little more detailed.
I think I might have been doing illegal work.
No maybe about it, you
have been committing a crime. There is no such thing as a legitimate work-from-home reshipping job. Legitimate reshippers (they do exist) have physical facilities, whether they are mailbox stores or even warehouses, and real jobs working for them involve physically going to work every day.
I questioned their methods of doing things but they said they are perfectly legal and have been in business for several years.
That's a standard response from the criminals when questioned. They are criminals, recruiting victims to help with their crimes. If they are willing to commit bank fraud, they certainly don't have a problem with lying to a potential victim to get their cooperation.
The only reason I did it was to make some extra money to get by since times have been rough financialy.
These criminals typically don't pay their "employees." Again, they are criminals. They are already committing serious crimes--they have no concerns whatsoever about getting in trouble for failing to pay an accomplice. On the rare occasion in which they do pay their "employees" it is going to be with stolen funds or via hacked accounts, and there is a good chance that in the end the payment will end up reversed.
Now, let's get to what you can/should do from here:
1) post the details the criminals are using here. Include emails they sent you, any websites they directed you to, and email addresses/ phone numbers used. Remove your own name and personal details.
2) Since you have actually received and forwarded for them, you need to file a police report to document that you were an unknowing victim. Print out and be prepared to show them any emails you received to show how you were recruited and that you didn't know you were committing a crime. Much better to do that now than to have the police track you later and suspect you of being an accomplice.
3) File a mail fraud report with USPIS.(T5 posted the link above.)
4) file an online report with IC3.
5) cut off all contact with the criminals. If you get any more packages, turn them over to the police or simply return to sender unopened. Do not confront the criminals, just walk away.