State-owned utility Eskom says it continues to take decisive action following the disclosure in its full-year 2024 financial results, released in December 2024, of a forensic report detailing the breach of its Online Vending System (OVS).

The system was exploited to generate and distribute fraudulent prepaid electricity tokens, revealing critical vulnerabilities in both the physical and cybersecurity components of the utility’s prepaid electricity infrastructure.

In response, Eskom says it undertook a comprehensive review and intervention strategy aimed at mitigating these vulnerabilities and restoring system integrity.

As reported by various media outlets, Eskom lost considerable money to this fraud, in which it suspects some its staff may have been complicit.

“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.

“These measures are part of Eskom’s ongoing commitment to safeguarding operations and addressing identified vulnerabilities,” says Eskom chief technology and information officer Len de Villiers.

While the investigation into the OVS system breach continues, Eskom says it has taken several proactive steps to strengthen its systems and restore public confidence, and that it has made significant progress in enhancing and protecting its infrastructure, ensuring greater resilience and reliability.

Key actions include implementing internal controls to deal with electricity theft; measures to safeguard the system by reinforcing physical infrastructure and limiting both physical and digital access; and enhanced monitoring capabilities to ensure transparency and timely reporting.

There is also ongoing collaboration with law enforcement agencies to support investigations and ensure accountability. As part of this process, employees who have been implicated have been placed on precautionary suspension pending further review.

Moreover, actions entail augmented in-house capabilities, supported by an external IT firm tasked to better manage risks and safeguard operations; coordinated system upgrades through a structured change management process; regular reporting to the Eskom board, which has maintained oversight throughout the remediation process; and the accelerated acquisition of a new, secure vending system, designed to replace the current OVS and prevent future incidents.

“We are fully aware of the challenges that have emerged within the OVS environment and we have taken clear steps to address them. Our focus is on restoring trust, strengthening our systems and ensuring that our customers can rely on a secure and efficient service. This is not just a technical fix, it is part of a broader commitment to transparency, operational excellence and accountability,” says Eskom group CE Dan Marokane.

While Eskom continues with its investigation in conjunction with law enforcement agencies, the findings will only be shared once the process is complete and the appropriate time for disclosure has been determined.

The entity had called on stakeholders and its customers to remain vigilant and report any suspicious activity related to prepaid electricity tokens.