How and why is apple not believing me when I say my phone is compromised

Sorry, but you have not provided enough information to be able to offer any assistance.

• Is your location showing correctly in the Maps app?
• Do you have Location Services turned on?
• What website are you viewing that shows your location incorrectly? It is not unusual for the website to determine location by the IP address provided to them which cannot be used to determine your exact location and that is a good thing. It is just a general area based on the IP address assigned to you by your Internet Service Provider.
• What was stolen from you, your email address or Apple ID? You will have a password for your email address from the email provider and a different Password from Apple for your Apple ID for that email address.

Unless you are a something like a high-profile politician, activist, or journalist whose data would be worth half a million dollars to acquire, your phone has not been compromised.

That doesn't mean there isn't something wrong. If you explain exactly what you're seeing, perhaps someone can help you figure out what the actual problem is.

For example, it's far more likely that your Apple Account was compromised. You may want to start by reading this:

If you think your Apple Account has been compromised - Apple Support