Eskom's bold crackdown slashes online vending system fraud to record lows

Power utility Eskom says it has made major progress in tackling fraud linked to its Online Vending System (OVS), following a serious breach that came to light last year.

IOL previously reported that the state-owned entity announced that it had implemented new security and oversight measures for its prepaid electricity system, aimed at strengthening its Online Vending System and improving control across its operations.

This decision to implement the new measures followed the release of a forensic report detailing a breach of the Online Vending System (OVS) in Eskom's full-year financial results for 2024, which were published in December 2024.

The breach is believed to have caused significant financial losses to the utility, with reports indicating that millions of rands were lost due to fraudulent activities.

In a statement on Thursday, the power utility said it had successfully reduced fraud linked to the OVS to very low levels through a multi-layered approach.

"Fraud linked to the OVS has now been reduced to very low levels of activity. This improvement reflects a multi-layered approach strengthening physical security, cyber resilience, and operational controls. The rollout of smart meters has also enabled near real-time detection of suspicious activity, supporting more effective investigations".

Eskom added that the utility had implemented tighter physical access controls to secure vending environments and enhanced cybersecurity tools and monitoring systems to prevent unauthorised access.

“Reducing vending fraud to very low levels demonstrates that our interventions are effective," Eskom Group Chief Executive, Dan Marokane, said.

"We are protecting revenue, restoring trust, and ensuring our customers receive a secure and reliable service. This is whilst we continue to investigate the historical fraudulent acts to establish interventions that may be necessary,” said Eskom Group Chief Executive, Dan Marokane.

IOL Business

mthobisi.nozulela@iol.co.za

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