Sham telecoms created to scam AT&T must pay back ill-gotten gains [telecom]

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Sham companies billed AT&T $13 million for services not provided.

By Jon Brodkin

AT&T has won a $252,000 judgment from the remnants of sham telecoms
that were created in order to bill legitimate phone companies for
services they didn't provide.

The companies billed AT&T $13 million, but AT&T figured out the scam
after paying only a fraction of that. The defendants, All American
Telephone Co., e-Pinnacle Communications, Inc., and ChaseCom, operated
out of Utah and Nevada and had all shut down by 2010. The Federal
Communications Commission granted AT&T's complaint against the
companies in March 2013 and last week ordered the defendants to pay
back the $252,496.37 they got from AT&T.

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I used to code PL/I in the NYNEX billing application: we billed over 6
Billion a year, back in 1994.

The security paradigm was simple: we assumed that every record we
received was valid. There were lots of tests for valid values in the
various fields of each record, but no way to verify if it had been
sent from a company that actually provided the service being billed
for. It was a leftover from the "One Bell, One System" days when the
executives faced Bell Labs while they prayed.

Looks like nothing much has changed.  


Bill Horne
(Remove QRM from my email address to write to me directly)

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