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March 22, 2012 09:37 pm EDT
AT&T has violated the United States False Claims Act to the tune of "millions of dollars," according to a Department of Justice lawsuit filed this week. The DOJ alleges that the carrier intentionally neglected to authenticate users of the IP Relay service -- a tool utilized by hearing-impaired persons to type messages that communications assistants then read to callers. The service is also abused by individuals overseas to defraud U.S. businesses (think infamous Nigerian scams), which prompted the FCC to establish a law requiring telecom providers, including AT&T, to confirm the identity of registered users, which it apparently failed to do. This resulted in thousands of fraudulent users, representing some 95 percent of all calls, which AT&T received FCC payments for to the tune of $1.30 per minute. An AT&T spokesman was somewhat dismissive when speaking to the Associated Press, saying "as the FCC is aware, it is always possible for an individual to misuse IP Relay services, just as someone can misuse the postal system or an email account, but FCC rules require that we complete all calls by customers who identify themselves as disabled." But if the allegations are proven, there could be some pretty serious repercussions for Big Blue. DOJ PR is just past the break.
The Verge | 
Department of Justice ||Comments
Original Link: http://www.engadget.com/2012/03/22/doj-sues-att-for-improper-ip-relay-billing/
US DOJ sues AT&T for improper IP Relay billing, alleges millions in false claims to FCC
AT&T has violated the United States False Claims Act to the tune of "millions of dollars," according to a Department of Justice lawsuit filed this week. The DOJ alleges that the carrier intentionally neglected to authenticate users of the IP Relay service -- a tool utilized by hearing-impaired persons to type messages that communications assistants then read to callers. The service is also abused by individuals overseas to defraud U.S. businesses (think infamous Nigerian scams), which prompted the FCC to establish a law requiring telecom providers, including AT&T, to confirm the identity of registered users, which it apparently failed to do. This resulted in thousands of fraudulent users, representing some 95 percent of all calls, which AT&T received FCC payments for to the tune of $1.30 per minute. An AT&T spokesman was somewhat dismissive when speaking to the Associated Press, saying "as the FCC is aware, it is always possible for an individual to misuse IP Relay services, just as someone can misuse the postal system or an email account, but FCC rules require that we complete all calls by customers who identify themselves as disabled." But if the allegations are proven, there could be some pretty serious repercussions for Big Blue. DOJ PR is just past the break.US DOJ sues AT&T for improper IP Relay billing, alleges millions in false claims to FCC originally appeared on Engadget on Thu, 22 Mar 2012 17:37:00 EDT. Please see our terms for use of feeds.
PermalinkThe Verge | Department of Justice ||CommentsOriginal Link: http://www.engadget.com/2012/03/22/doj-sues-att-for-improper-ip-relay-billing/
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