WASHINGTON (Reuters) – AT&T Inc will pay $7.75 million in refunds and fines after federal investigators found it allowed unauthorized third-party charges related to phony directory-assistance service on its customers’ telephone bills, U.S. regulators said on Monday.
The fraud was uncovered by the U.S. Drug Enforcement Administration while investigating two Ohio companies for drug-related crimes and money laundering, the Federal Communications Commission said.
AT&T, the Dallas-based telecommunications giant, allowed “scammers to charge customers approximately $9 per month for a sham directory assistance service,” the FCC said. AT&T received a fee from the companies for each charge AT&T placed on its customers’ bills, the FCC added. MORE