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MCI Accused of Long-Distance Call Accounting Fraud

drcobb writes "According to the New York Times, MCI is under investigation again. This time for spoofing SS7 point codes to avoid paying access tariffs. Federal prosecutors have opened an investigation in the United States and Canada into accusations that MCI, the nation's second-largest long-distance carrier, defrauded other telephone companies of at least hundreds of millions of dollars over nearly a decade, people involved in the inquiry said."

11 of 196 comments (clear)

  1. Re:and at the drop of a pin... by digitalunity · · Score: 5, Funny

    This is off their web site:
    Value. Simplicity. Innovation.

    Better:
    Slamming. Theives. Liars.

    --
    You can't legislate goodness. Let each to his own destiny, by will of his freely made choices.
  2. (OT) Google.. by \\ · · Score: 5, Interesting

    I know this is off topic, but I find it interesting that Slashdot used a Google referer url in it's story. I mean, it's obvious Slashdot isn't Google, and while I'm happy to use the link, I wonder if the NYT will be happy about it, and/or do something about it.. this'll be an interesting one to watch, I guess.

    (Maybe Slashdot can become an NYT partner..)

    1. Re:(OT) Google.. by brocheck · · Score: 5, Interesting

      This is not necessarily as off-topic as you might think.

      MCI defrauds other websites by pretending its long-distance calls are actually local calls.
      Slashdot defrauds other websites by pretending its someone else.

      Though to be honest, you could (last I checked) put slashdot in there and it would function -- but you could also put in 'ILOVEABIGPENIS' as a partner and it would show the article as well, so maybe that doesn't say anything afterall.

      --

      suddenly I feel very tired

  3. accounting? by mandalayx · · Score: 5, Insightful

    The central element of MCI's scheme, people involved in the inquiry said, consisted of disguising long-distance calls as local calls to avoid paying special access tariffs to local carriers across the country. Those tariffs are the largest single source of MCI's costs for carrying calls and data transmissions.

    Accounting? Looks like just lying to me.

    Justice Department officials have evidence that MCI may, in effect, have "laundered" calls through small telephone companies, and even redirected domestic calls through Canada, to avoid paying access fees or shift them to rival long-distance carriers, according to people involved in the investigation.

    Remember, though, that MCI was Worldcom. (Worldcom changed their name to MCI).

    "We were told that Project Invader was an exploitation of a tariff loophole, a trick. We kept the project a secret. The traffic was ramped up slowly to avoid detection."

    Seriously, 'Project Invader'? Who comes up with these project names? Are you just asking to be caught?

  4. spoofing ss7? by Anonymous Coward · · Score: 5, Informative

    please.

    What does spoofing ss7 point codes have to do with this?

    Oh, you can't really spoof ss7 point codes, otherwise the return ( cells? ) have no way of getting back to you, so how do you expect to terminate a call? hmmm?

    dumbass.

    get some clue before you write about telephony related things.

    oh, every facilities-based provider gets around getting billed for access, especially when you're talking about intrastate calls. ILEC will bill you roughly 3.5 cents a minute, new CLECs do the same thing, older CLECs charge more but will have to reduce their access costs.

    for interstate calls, you're getting hit for half a cent a minute.

    there is a document on this somewhere on the fcc site describing how the rates have to go down, and what the rates have to be for intra/inter state access charges.

    get some clue.

  5. Hardcore MCI by Anonymous Coward · · Score: 5, Funny

    So does this make MCI the most successfull hardcore Pheaker in history?

    What would ss7 spoofer be called? A plaid box?

  6. Alrighty then by Rhinobird · · Score: 5, Interesting

    I think this make it official. Working in the telecom industry is now a shameful thing. Kinda like saying you're a used car salesman or something.

    --
    If Mr. Edison had thought smarter he wouldn't sweat as much. --Nikola Tesla
  7. Re:Wow. by mangu · · Score: 5, Funny
    Is the biling and routing that automatic or is it just so screwed up that the fraud was lost in the noise?


    Yes and yes. Companies today are being managed by MBAs who don't know a fucking shit about the way business actually works, all they know about is "administration". MBAs never get into the detais, they only think in the big picture. If it isn't shown in power-point slides, then it doesn't exist. If fraud wasn't in the business plan, or if it wasn't mentioned by the marketing consultants, it doesn't exist.

  8. This is why corporate charters should be revoked.. by Anonymous Coward · · Score: 5, Insightful

    and upper management jailed for 20+ year sentences after corporate misgivings are proven.

    Let's face it. We, the working people, have been screwed for years under the "we're doing this for the shareholder" mantra. We've been asked to take pay cuts, work longer shifts, work weekends unpaid. Meanwhile, this is done not for the shareholders, which see no real increase, but for the top executives who use that extra productivity to support their continued bonus plan.

    This has always been about bonuses for execs. This story proves that even more.

    The only difference between organized crime and corporate America is where they get their suits tailored.

  9. Re:Accounting Fraud by Anonymous Coward · · Score: 5, Interesting

    Concidering we're the largest internet backbone in the world, I think some people might be interested. Especially if they break us up and start selling off the pieces.

    I've survived seven layoffs so far. Might as well go for eight :)

  10. Time for accounting nerds to show their support ! by Krapangor · · Score: 5, Funny

    The Bush goverment is just persecuting MCI for political reason. Their narrow-minded morale doesn't allow any creative accounting and business methods.
    It's time for all accounting nerd to stand up and show their support !
    First, we need some "free MCI Worldcom" bumper stickers and t-shirts. This wouldn't of course have any effect on the lawsuit, but we'll feel all great and warm inside.
    We might also organize some protests in Washington nobody notices.
    And when the MCI management comes out of prison we can all rush to buy their new book "Art of Fraud: Controlling the human element of accounting".

    --
    Owner of a Mensa membership card.