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Newark, NJ

Our Covad PBX compromised: Covad refuse to update the bill

Our company uses Covad's T1 and PBX system. we were billed more than $3000.00 for international calls made to Cuba and Other South American countries. We filed for fraud (as we never make phone calls to these countries) in April 2009. about two mouths letter, we got the following letter from Covad's VOIP Billing Supervisor:

From Covad:

Sorry for the delay in getting back to you. When you first reported this issue to us, we had our Support department investigate the issue. They immediately put a block on our end to prevent 212-***-**** from calling international calls. It appears that is the number that is making all of the calls.

This is not a complete guarantee that the issue will be stopped. Calls are not controlled from Covad; your PBX manages them. You will need to contact your PBX vendor and have them check your PBX settings, to ensure that everything is setup securely. If needed they can block international calls for this extension. Calls are routed from your PBX through the Covad network, so if there were any breaches it would be within the PBX.

If you require any further details please contact our support department at the number below, option 2.

Best Regards,

***** ******
VOIP Billing Supervisor
Covad Communications
1-800-***-****, option 5

I do see that usage on your June invoice is back to the normal amounts you bill. I understand that you have concerns with the amount that was billed on April and May's invoice. However, as per the information in my previous e-mails, any security issues are within your PBX and not Covad's network. As a result the charges that were billed are valid. All calls were calls placed via your PBX through Covad's network. As a result you would be responsible for the charges.

While I was reviewing your account I do see that there are previous months where you used $500 plus in usage monthly. I also discovered while reviewing your account that you have not been billed a MRC (monthly recurring charge) since July 2006. You were only billed the quoted MRC on the first two invoices your company received in 2006. Since that time you have not been billed any monthly fees. You have only been getting billed usage charges from International calls and toll free usage. As per your quote you should be billing a $591.26 ($799 minus 26% discount) per month MRC. Going forward you will be getting billed the quoted $591.26 MRC as well as any usage you incur.

***** ******
VOIP Billing Supervisor
Covad Communications
1-800-***-****, option 5


I am not an expert of PBX system, but what the letter's implication scares me; even the system is comprised, a customer still have to pay whatever the amount is due. What should I do? We cannot pay more than $3000 for the phone calls that we did not make!
Also, how easy/difficult to make international call, using Covad VoIP account, in a remote location? I cannot believe that those phone calls were made from our office.
Does anyone here have similar experience with Covad?
Thank you in advance.