September 18, 2025

Eskom Clamps Down on Online Vending System Fraud as Investigation Continues

Eskom has successfully reduced fraud in its Online Vending System (OVS) to "very low levels" following a comprehensive security overhaul, according to a statement released today. The utility has implemented multiple layers of protection after first disclosing the breach in its December 2024 financial results.

Security Measures Yield Results

According to Eskom Chief Technology and Information Officer Len De Villiers, the utility strengthened its systems against potential threats earlier this year, with all enhancements now managed through a robust change management process across all divisions.

"All enhancements are managed through a robust Change Management process across all divisions, ensuring consistent oversight and control," De Villiers stated. "These measures are part of our ongoing commitment to safeguarding operations."

The utility credits its progress to a multi-layered approach that strengthens physical security, cyber resilience, and operational controls. The deployment of smart meters has enabled near real-time detection of suspicious activity, supporting more effective investigations.

Key Interventions Implemented

Eskom's strategy to secure the compromised vending system includes:

• Tighter physical access controls for vending environments
• Enhanced cybersecurity tools and monitoring to prevent unauthorized access
• Stronger user-access controls with weekly irregularity flagging dashboards
• Expanded investigative measures in collaboration with law enforcement
• Deployment of detection tools for early intervention
• Smart meter rollout and monthly fraud level validation
• Accelerated development of a new, secure vending platform to replace the current OVS

Some employees implicated in the fraud have already been dismissed following internal processes, with certain aspects of these cases being referred to authorities for potential criminal charges.

Clarification on Token Usage

Eskom also clarified that prepaid electricity tokens can only be used on meters registered within its system. Municipal systems operate independently and are not integrated with Eskom's platform, meaning tokens generated by Eskom cannot be applied to municipal meters, and vice versa.

This separation prevents tokens from being universally applied across different systems, contrary to assumptions in recent reporting.

Outlook

While Eskom reports significant progress in containing the breach, the investigation continues in collaboration with law enforcement agencies. The utility appears to be taking a two-pronged approach: implementing immediate security fixes while developing a completely new vending platform to replace the compromised system.

The reduction in fraud levels suggests the immediate measures are working, but the transition to the new platform will likely be the ultimate test of whether Eskom can permanently resolve the vulnerabilities in its prepaid electricity system.

Eskom Group Chief Executive Dan Marokane emphasized the importance of these interventions: "Reducing vending fraud to very low levels demonstrates that our interventions are effective. We are protecting revenue, restoring trust, and ensuring our customers receive a secure and reliable service."

The utility has called on customers and stakeholders to remain vigilant and report any suspicious prepaid electricity activity.

Key Terms Explained

• Online Vending System (OVS): Eskom's digital platform that allows customers to purchase prepaid electricity tokens
• Smart Meters: Advanced electricity meters that can communicate consumption data remotely and in near real-time, allowing for better monitoring and detection of unusual patterns
• Prepaid Electricity Tokens: Unique codes purchased by customers that, when entered into a prepaid meter, load a specific amount of electricity credit
• Change Management: A structured process for implementing and tracking changes to systems or processes to ensure proper oversight and minimize disruption