Eskom Tightens Security After Major Prepaid Token Fraud Breach

July 2, 2025

Eskom has implemented significant security enhancements to its Online Vending System (OVS) following the discovery of a major breach that allowed criminals to generate and distribute fraudulent prepaid electricity tokens, according to a statement released on Wednesday.

System Breach and Vulnerability Assessment

The utility first disclosed the breach in its full-year 2024 financial results released in December last year, revealing that both physical and cybersecurity components of the prepaid electricity infrastructure had been compromised. The exploit allowed unauthorized generation and distribution of fraudulent prepaid electricity tokens across the country.

"We uncovered weaknesses in physical and cybersecurity components on our OVS system," explained Monde Bala, Eskom's Group Executive for Distribution.

Security Measures Implemented

In response to the breach, Eskom has taken several actions to strengthen its systems:

• Implementation of internal controls specifically targeting electricity theft
• Reinforcement of physical infrastructure with limited access protocols
• Enhanced monitoring capabilities for improved transparency
• Ongoing collaboration with law enforcement agencies
• Precautionary suspension of implicated internal employees
• Engagement of an external IT firm to improve risk management
• Structured change management process for system upgrades
• Regular reporting to the Eskom Board
• Accelerated procurement of a new, more secure vending system to replace the current OVS

Len De Villiers, Eskom's Chief Technology and Information Officer, confirmed that "earlier this year, Eskom successfully strengthened the protection of its current systems against potential threats. All system enhancements are managed through a robust Change Management process that spans all divisions, ensuring consistent oversight and control."

Investigation Status

The investigation into the full extent of the OVS breach continues, with Eskom working alongside law enforcement agencies. The utility has stated that findings will only be shared once the process is complete and at an appropriate time for disclosure.

Implicated internal employees have been placed on precautionary suspension while the investigation continues, suggesting potential insider involvement in the security breach.

Outlook

The token fraud breach represents a significant challenge for Eskom beyond its ongoing generation capacity issues. The security vulnerabilities in the prepaid electricity system potentially compound revenue collection problems at a time when the utility is working to stabilize its financial position.

With the accelerated procurement of a replacement system underway, Eskom appears to be taking a two-pronged approach: strengthening the existing vulnerable system while working toward a complete replacement solution.

Eskom Group Chief Executive, Dan Marokane, emphasized the broader implications of these efforts: "This is not just a technical fix, it is part of a broader commitment to transparency, operational excellence and accountability."

The utility has called on customers to remain vigilant and report any suspicious activity related to prepaid electricity tokens as it continues to address the security vulnerabilities.

Key Terms Explained

• Online Vending System (OVS): The digital platform Eskom uses to generate and distribute prepaid electricity tokens to customers across South Africa.
• Change Management: A structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state, ensuring that changes are implemented smoothly and successfully.
• Prepaid electricity tokens: Unique codes purchased by consumers that, when entered into a prepaid meter, credit the meter with a specific amount of electricity.