Eskom Drastically Reduces Prepaid Electricity Fraud After Online Vending System Breach

September 18, 2025

Eskom has significantly reduced fraud in its Online Vending System (OVS) following a major security breach that was first disclosed in December 2024, according to a statement released today.

Fraud Now at 'Very Low Levels' Following Comprehensive Intervention

The power utility reports that its multi-layered approach to strengthening security has successfully contained the breach that affected its prepaid electricity vending system. This comes after months of implementing enhanced physical security measures, improved cyber resilience protocols, and stricter operational controls.

"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," said Eskom Group Chief Executive, Dan Marokane.

The statement responds to recent media coverage about the OVS breach, emphasizing that Eskom had previously disclosed the issue and has been actively addressing it since discovery.

Security Measures Implemented

According to Eskom's Chief Technology and Information Officer, Len De Villiers, the utility has implemented several critical security enhancements:

• Tighter physical access controls to secure vending environments
• Enhanced cyber-security tools and monitoring systems
• Stronger user-access controls with weekly irregularity detection
• Deployment of advanced detection tools for early intervention
• Rollout of smart meters to validate fraud levels monthly
• Acceleration of a new, more secure vending platform to replace the current OVS

"Earlier this year, Eskom strengthened the protection of its systems against potential threats. All enhancements are managed through a robust Change Management process across all divisions, ensuring consistent oversight and control," De Villiers said.

Staff Dismissals and Ongoing Investigations

The statement confirms that some implicated employees have been dismissed following internal investigations conducted in collaboration with law enforcement. Eskom indicated that certain elements of the case will be referred to authorities for potential criminal proceedings, with the utility pledging full cooperation.

The full extent of the breach and its financial impact on Eskom remains unclear from the statement. However, the utility's aggressive response suggests the issue was significant enough to warrant substantial resources for containment.

Clarification on Token Usage

Eskom also clarified an important technical point about its prepaid system: tokens generated by Eskom can only be used on meters registered within Eskom's system and cannot be applied to municipal meters, which operate on independent vending systems. This separation of systems limits the potential scope of fraud.

Outlook

While the containment of the fraud to "very low levels" represents a significant improvement, Eskom faces ongoing challenges in maintaining system security. The planned replacement of the current OVS with a new, more secure platform suggests the utility recognizes inherent vulnerabilities in its existing infrastructure.

The breach comes at a time when Eskom has been making strides in operational stability, having maintained a long period without loadshedding. However, this security incident highlights the complex challenges the utility faces beyond just generation capacity.

For South African electricity consumers, particularly those using prepaid systems, Eskom's response appears to have limited any widespread disruption. The utility has called on customers to remain vigilant and report any suspicious prepaid electricity activity.

Key Terms Explained

• Online Vending System (OVS): The digital platform Eskom uses to manage the sale and distribution of prepaid electricity tokens to customers.
• Prepaid Tokens: Unique codes purchased by customers that, when entered into a prepaid meter, load a specific amount of electricity credit.
• Smart Meters: Advanced electricity meters that can communicate usage data back to Eskom in near real-time, allowing for better monitoring and fraud detection.
• Change Management: A structured approach to transitioning systems or organizations from a current state to a desired future state, ensuring proper controls and oversight during transitions.