There's definitely something missing from that story ...
How did the 'attacker' just happen to have a wardialer and know to use it that night? Why couldn't the NOC just shut off that one guy's service? Why can't I find any reference to this in the news? (they always love a good cracker story). How was a company that big operating in such an ad-hoc manner?
Given it is 2001 and not so much broadband adoption, I'd find it easier to believe if it was some script-kiddie who found a way to play with a modem and DTMF signal generation.
Also, as already pointed out, this does not seem to be a big company at all. In a world where even a idiot can start a company, you will eventually end up with companies run by idiots.
"In a world where even a idiot can start a company, you will eventually end up with companies run by idiots."
Given that market forces determine which companies survive, if we eventually end up with companies run by idiots, it tells something about the rest of us too.
I know a stupid idiot who bought some equipment, illegally stuck it in some country and is reselling minutes through someone and making money somewhere along the way. Some screw up and he could be in the same boat. But you'd think companies would limit the credit they extend to others...something isn't quite right with that story.
I find hard to believe that during such a special night all the company's fate depended on 3 guys with no backup and no direct supervision. If that's true, it seems to me very unprofessional.
Could well have been a competitor (as others have suggested), or perhaps a severely malfunctioning phone. (It's not unheard of; there was a series of 911 hangup calls around where I used to work that was eventually traced to a vending machine modem).
Why wasn't it in the news? Well, because nobody ever told them. It's not like you'd issue a press release.
And why were they running such a cheap operation? Because they were stupid and greedy.
(Not saying the story is 100% true, but it's certainly plausible)
I think a more likely theory is that the telecom providers frequently jack their rates, to see if people notice. If someone doesn't notice, they keep jacking them and rake in profits. It's a good bet that at least one NOC is asleep at the switch on a given night.
How did the 'attacker' just happen to have a wardialer and know to use it that night? Why couldn't the NOC just shut off that one guy's service? Why can't I find any reference to this in the news? (they always love a good cracker story). How was a company that big operating in such an ad-hoc manner?