The services charged customers approximately $9 a month.
The companies in question were Discount Directory, Inc. and Enhanced Telecommunications Services, both based out of Cleveland.
The scam was discovered when the Drug Enforcement Administration investigated both companies for drug-related crimes and money laundering. When the DEA seized items from the companies' officials, investigators found documents that showed the companies defrauding telephone customers.
The scams mostly targeted small businesses and landline phones.
AT&T has agreed with the FCC to issue full refunds to all current and former customers who were charged for the fake services dating back to January 2012. AT&T will also pay a $950,000 fine.