AT&T has been fined once again by the FCC, this time for helping drug dealers run a directory assistance scam on the company's own fixed-line phone customers. According to the FCC announcement (pdf), AT&T allowed scammers to charge customers approximately $9 per month for a sham directory assistance service, a scam only discovered after the US Drug Enforcement Administration (DEA) was investigating the scammers for drug-related crimes and money laundering.
During the DEA's investigation, the agency uncovered documents detailing the cramming scam by Discount Directory, Inc. (DDI) and Enhanced Telecommunications Services (ETS).
The documents detailed how the two bogus companies were created specifically to bilk AT&T fixed line customers via monthly fees for directory services that were never actually offered. AT&T allegedly let the scam continue unimpeded because the company received a fee from each illegal charge. Under the terms of the settlement, AT&T will issue $6,800,000 in refunds to all current and former consumers charged for the sham directory assistance service, and a $950,000 fine to the U.S. Treasury.
"AT&T ignored a number of red flags that the charges were unauthorized, including thousands of charges submitted by the companies for nonexistent, disconnected, or otherwise ‘unbillable’ accounts," the FCC said.
This isn't AT&T's first run in of this type. In fact, AT&T has at this point established a very clear record of letting a rotating crop of scammers bilk its customers out of money. In 2013, AT&T was fined $18.25 million for turning a blind eye to fraudulent calls made over the IP Relay service, for which AT&T is subsidized by the government. In 2015, AT&T was hit with a $10.4 million fine for allegedly defrauding the FCC Lifeline program. In 2014, AT&T paid a $105 million fine for actively making its bills harder to understand so crammers would have an easier time ripping off its wireless subscribers.
The full Consent Decree can be found
here.