AT&T ends Fight over Million Dollar Phone Bill

Michael Smith runs a small manufacturing firm in Ipswich. AT & T is suing him for about $900,000. Why? Because someone called Somalia. All of the above happened, in the same order.

In 2009, some phone hackers managed to crack into Smith’s system and made calls to Somalia. Those calls were not just for weekend chats but were a real deal that racked a bill for $890,417 in four days. In the following years, it has grown in to a debt of $1.5 million. AT&T, the service provider is suing him for that amount.

Smith has claimed that this lawsuit could leave him broke. The firm that Smith owns is called Todd Tool and Abrasive systems. They manufacture machine equipments for machine shops. It’s a modest business that employs about 15 people. They have eight lines that connect the private network within the company. The phone hackers broke in to this system and made calls to the African nation. Businesses big and small have been complaining about issues like these, but none on such a large scale.

Smith says he does not even have a contract with AT&T. The calls were made by using a dial around method. This means AT&T could waive off the bill on the basis of fraud. Instead, they have taken it to court. They are for changing the person who owns the lines irrelevant of who made the calls.

Last year, they filed the lawsuit against Smith in the U.S District Court for not taking the necessary precautions that would prevent unauthorized access to their lines.


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