AT&T to pay $7.75 million for allowing sham directory-assistance calls [telecom]

By David Shepardson

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.

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