Collusion and Fraud Detection on Electronic Energy Meters

Collusion and Fraud Detection on
Electronic Energy Meters
Cyber Security in Smart Metering

Collusion
• Collusion is a secret cooperation or deceitful
agreement in order to deceive others, although not
necessarily illegal, as is a conspiracy.
• A secret agreement between two or more
parties to limit open competition by deceiving,
misleading, or defrauding others of their legal
rights, or to obtain an objective forbidden by law
typically by defrauding or gaining an unfair
market advantage is an example of collusion.

Collusion
A secret agreement between two or more parties to limit open
competition by deceiving, misleading, or defrauding others

Collusion is a secret cooperation or deceitful
agreement in order to deceive others

Collusion
• Collusion takes place when management,
employees, or third parties work together to
conceal fraud, thereby defeating the internal
controls and rendering them ineffective.

Introduction
• Smart meters (gas, electricity, water, etc.) play
a fundamental role on the implementation of
the Smart Grid concept.
• Nevertheless, the rollout of smart meters needed
to achieve the foreseen benefits of the integrated
network of devices is still slow.
• Among the reasons for the slower pace is the
lack of trust on electronic devices and new
kinds of frauds based on clever tampering and
collusion.

Introduction
• In recent years, electric power systems have
been going through significant digital
growth thanks to utilization of techniques
previously used in information and
communication technologies (ITC).
• Remote management and monitoring of smart
grids is increasingly often encountered in
virtually every part of power grid
infrastructures.

Introduction
• One of the challenging problems when it comes
to electric energy distribution is electricity
theft. Regardless of whether the deed is done
on a large scale or only by a single consumer, it
is a problem that generates losses and its
detection is not always easy.
• One of the crucial factors making the issue of
electricity theft still relevant is the common
physical access of the end users to the
installations or meters.

Introduction
• Almost gone are the times when a meter
could only measure active electrical energy
in one direction and in one time zone.
• Modern devices allow for programming in the
number of zones, determining what physical
quantities other than electric energy can be
measured and recorded in the memory, as well
as registering events.

Introduction
• More technologically advanced, also used in
advanced metering infrastructure (AMI)
solutions, they allow for controlling re-ception,
remotely programming the distribution of time
zones, realizing prepayment functions, etc

Advanced Metering Infrastructure
(AMI)

Introduction
• Today, meter boxes are put outside
premises. That is necessitated by having to
hinder the rather common phenomenon of
illegal energy consumption.
• Additionally, it decreases the number of
problems appearing in case a client has to be
force-fully disconnected from electric power.

Today, meter boxes are put outside
premises

Introduction
• Formerly, when meters were located inside
people’s flats, it was easier to illegally use
energy and more difficult to control the
metering system.
• In their home, the consumer could make their
own decisions on how to secure their
possessions and who to allow inside the house.

Formerly, when meters were located inside people’s
flats, it was easier to illegally use energy and more
difficult to control the metering system

Introduction
• These days, modern metering systems are located
outside residential premises or on the border of
properties.
• It makes things easier for the distribution company, as
its employees technicians, collectors and third parties
have easier access to the metering installation.
• In case the meter is installed in a key-locked box
outside the consumer’s premises(often in a collective
cabinet by the building’s entrance), it is difficult to
hold the energy consumer responsible.

Modern Metering Systems Are Located Outside
Residential Premises Or On The Border Of
Properties

Legal aspects of electric energy theft
• Illegal consumption of electric energy is
deemed to occur when: the energy is
consumed without a contract, the energy is
consumed with total or partial bypassing of the
counter, the metering system has been
tampered with to falsify the measurements.

• Illegal consumption of electricity is very
troublesome. It causes significant global
losses, but individual proceedings can only
recover relatively small amounts of money.
• It could therefore be said that the costs
related to pursuit of debt recovery from
illegal electricity consumption are dispro-
portionately high compared to hypothetical
profits.

The Main Reasons Of Electric Energy Theft
• The main motive is desire to save money.
• The experience of power plants tells us that
electric energy is not stolen by rich and
educated people, but mainly by those of low
and medium wealth. One can often read on
Internet forums that there is nothing wrong
in stealing from rich energy companies.

• The scale of the practice seems small, but its
effects can be tragic to us, both in terms of
finance and human life. Detection of theft does
not protect the victim from paying inflated
bills, and makeshift installations often cause
electrocutions and fires.
• The practice becomes more prevalent during
winter when energy consumption increases due
to heating, and many people wish to save
money.

The Main Reasons Of Electric Energy
Theft

The issue of illegal energy consumption
should be considered in three categories
• Safety- illegal consumption of electric energy
can cause electrocutions, fires or, in
combination with a gas installation, even a gas
explosion leading to destruction of property
and even death.

Illegal Consumption Of Electric Energy Can Cause
Electrocutions, Fires Or, In Combination With A Gas
Installation, Even A Gas Explosion

• Economy- an energy company protects the
economic interest of their own and their clients
by legal means.
• One should remember that a company’s losses
caused by illegal electricity consumption are
partly transferred to the clients in the form of
payments for electricity supply

• Society- illegal consumption causes clients to
experience negative feelings in terms of
commonly understood social justice.
• They do not understand why honest people
have to pay bills for electricity, and
individuals illegally consuming it are not
burdened with these costs

The Issue Of Illegal Energy Consumption

• However, high prices of electricity are no
justification. It should be understood that
illegal electricity consumption is ordinary theft
and is registered as such in police statistics.
• Suppliers counteract the scourge of theft mainly
with increased controls. They also appeal to their
clients to look out for energy thieves.
• Energy suppliers launch special hotlines where
any noticed theft can be anonymously
reported. Suppliers all over the European
Union undertake similar actions.

It should be understood that illegal electricity
consumption is ordinary theft and is registered as
such in police statistics

The Magnitude of the Problem
• Threats to metering data in relation to electro
mechanical meters are non-computerized in
nature, and vulnerabilities to potential attack.

• 1) placing meters in commonly accessible areas with no
security measures for metering data confidentiality(most
commonly in multi-family buildings),
• 2) using poor security measures against access to
cabinets with meters (low quality locks and keys) and
widespread use of facilitations for reading the
measurements by collectors in the form of looking glasses
in the doors of meter cabinets,
• 3) using poor security measures against opening the
meters (seals),
• 4) lack of remote systems for monitoring attempts at
opening meter cabinets,
• 5) lack or superficiality of security audits.

• It is worth reminding that illegal electric
energy consumption is defined as:
• (1) consuming it without signing a contract,
• (2) with total or partial bypassing of the
metering and billing installation,
• (3) or by tampering with the installation,
falsifying the measurements performed by the
metering and billing installation.

Illegal Electric Energy Consumption

Tampering With The Installation, Falsifying The
Measurements Performed By The Metering And
Billing Installation

Techniques of Electric Energy Theft
• As electric energy suppliers inform us, the
ingenuity of so-called clients knows no
boundaries.
• Based on their many years of experience, they
assure us that there are about 300 different
theft techniques. Collectors and controllers
visiting the clients are alert to such ideas.

Techniques of Electric Energy Theft

The most important and most popular
theft techniques are

Tampering with meter and seals

Illegal Tapping through Bare Wires

Wrong billing and fraud in bill
generation

Unpaid Electricity by individuals,
Government officials and untouchable VIPs

• Hidden Connection In Front Of The Meter
• This technique is the most popular method of
electric energy theft. It is most often encountered
among clients of lower social standing, living in
old apartment building whose old electrical
installations facilitate performing illegal
modifications.
• This method involves connecting an additional
installation to the line in front of the metering
system.

Hidden Connection In Front Of The Meter

• The basic version of this kind of theft assumes
total utilization of an illegal source, which is
quite easy to detect.
• A more sophisticated method involves only
partial use of an illegal source to make
detection harder. The theft is often
performed only on a seasonal basis, e.g. in
winter, for heating

Physical Tampering With The Terminals
Or Bridging
• The consumer has a three-phase meter at their
disposal.
• If they are knowledgeable in electrical
engineering and disconnect the N neutral wire,
taking care not to allow the installation’s N point
to be galvanically connected with the meter’s N
point, then, in case of asymmetrical energy
consumption, the meter will understate the energy
value, e.g. by 30%, as potential equalization
current will not flow through the N wire.

Physical Tampering With The Terminals
Or Bridging
• Does the recipient consume energy in
accordance with the contract?
• These days, some distribution companies
purchase meters that facilitate detection of
such actions

Physical Tampering With An Analog Meter’s
Mechanism
• Magnetic Field- influencing a meter with a
strong electromagnetic field by means of neo
dymium magnets, which is one of the most
popular methods of illegal energy consumption.
• That is because demagnetization of the
inhibitory magnets initially slows down the
counting wheel until it stops, but then it start
moving again and speeds up, which in turn
causes inflated readings and increased energy
bills

Mechanism

Physical Tampering With An Analog
Meter’s Mechanism

Mechanism
• Photographic Film- this fraud involves an
attempt to stop the moving counting wheel of
an analog meter by means of inserting
photographic film between the rear housing of
the meter and the glass front cover.
• This trick is popular because it does not
necessitate opening the meter and is easy to
perform.

Tampering With A Digital Meter’s Software
• Tampering With A Digital Meter’s Software
• This technique involves making a logical change in
the state of variables we can refer to by means of so-
called OBIS (Object Identification System) codes.
• These variables are responsible for storing values based
on which the energy supplier bills a given client.
• Due to the process of breaking through many
security measures being exceptionally complex and
time-consuming, and the necessity to have highly
specialized knowledge, this method of fraud is
encountered extremely rarely

Tampering With A Digital Meter’s
Software

• Tampering of electromechanical meters is not
uncommon for fraud goals (under-registering)
through security seal violation and direct or
indirect changes to the mechanical disc.
• The same is not easily accomplished on
electronic meters: built-in sensors are used to
report meter tampering, security sealing
violation, wiring changes, magnetic anomalies,
switched phases, abnormal clock settings, etc..

Security Mechanisms And Means To Detect
electric Energy Theft
• Contemporary electric power systems face a
significant challenge of both protecting their
own infrastructure and ensuring the continuity
of their services.

Security Mechanisms And Means To
Detect electric Energy Theft
• An especially big problem for the operator of an
electric power system involves financial losses
caused by electric energy theft.
• The theft pro-cess is facilitated by the
accessibility of the electric line itself and the
terminal metering devices. To prevent such
activity or significantly limit the practice,
operators use increasingly sophisticated
techniques to secure their own infrastructure.

financial losses caused by electric
energy theft

• However, the experiences of electric power
systems’ operators show us that the thieves
themselves also employ increasingly
advanced techniques, often even reverse
engineering - sadly, used for illegal energy
consumption.

• Electric energy meters installed these days
are usually placed inside common cabinets
located by a building’s entrance.
• Such a solution is, on one hand, convenient for
the energy supplier and the building’s
administrator, but, on the other, creates a
certain threat coming from the consumers
living there.

Electric energy meters installed these days are
usually placed inside common cabinets located by a
building’s entrance

• Physical Security Measures- physical means
ensuring the housing’s integrity. They are most
often encountered in the form of: welding of
individual elements of the housing, seals,
screws made partially of soft and quickly
deforming material and plastic clips.
• Interference with the these security
measures clearly indicates an attempt at
tampering with the device.

• Physical Parameterization Switch
• this often en-countered technique among the
producers of energy meters involves protection
against local parameterization, a meter has no
opening or a knob, is sealed by default.
• Used in other models of meters which allow
for setting up a switch, soldered into the
laminated board, responsible for
parameterization (write access)

• Motherboard Construction
• unusual construction of the motherboard and
arrangement of the electronic components can
be a significant impediment for someone
trying to make a connection to the micro-
processor or communication interface

• Magnetic Field Detector- practically all of
presently produced meters have a reed switch
which, when influenced by a magnetic field,
comprises a circuit on the electronic board,
which in turn makes it possible for the meter’s
software to register such an attempt at
tampering in the program’s memory.

• HASP key (Hardware Against Software
Piracy)- other security measures are typically
software-oriented. The most important one is
having to possess a program dedicated to
configuration with a specific meter model and an
original HASP hardware key.
• Moreover, proper authorization in the meter’s
system requires a password known only to the
producer, generated when the device’s
firmware is loaded onto the meter module’s
electronic processor.

HASP key
(Hardware Against Software Piracy)

Communication Encryption
• Another security measure aimed at preventing
unauthorized parameterization or listening-in
to the device.
• Apart from the fact that an attacker, in order to be
successful in their attempts, has to have a
communication module with a specific
technology at their disposal and a physical access
to a transmission medium, they will not achieve
their intended goal without knowing the
encryption key of that specific meter.

• All of the above-mentioned (physical)
mechanisms operate based on sensors
which, after an event has been initiated or
detected by the meter’s software, send
information about the attempt to the
concentrator or directly to the operator.

• The operator, thanks to dedicated management
and monitoring software, sends service
technicians to the indicated address to perform a
site inspection. The event history, even when the
operator cannot prove a fraud or tampering, is
stored in the system and assigned to a given
consumer.
• By analyzing such events, it can be concluded
in time that a given client has a tendency for
illegal electricity consumption and thus
cheating the system operator.

Methods of Energy Theft Detection
• There are methods allowing to detect and
locate a specific dishonest energy consumer
without the need to perform a site
inspection.

The Most Popular Methods Include
• A method based on calculating the balance
difference-
• The balance difference is an actual amount.
• Methods based on comparing the total
readings of meters with the control (balance)
meter are convincing when it comes to
narrowing down the circle of suspects and
checking a specific consumer’s meter readings.
The balance difference is the basic and most
important component indicating that theft of
energy took place

A method based on calculating the
balance difference

The most popular methods include
• Control Meter Method (Traditional) - this
method involves installing an additional
control meter to demonstrate that the
consumer’s meter shows a de-creased kWh
value.

• The metering system allows for reading meters in
a 15-minute cycle. Based on the collected data, it
is possible to see if the meters perform balancing
correctly. If not, a meter sub group, like risers or
staircases, is attempted to be balanced by means
of additional meter.
• If there is a riser in which the meters do not
balance each other out, the additional meter is
switched and balances out with e.g. individual
floors. By doing that, the meter with suspicious
readings can be reached.

• Reflecto meter testing- (using the wave
effect) it is a device which detects not only
illegal electricity consumption but also
discontinuity or non-uniformity of the wire.
This method is nothing new. What is new,
however, it its utilization. The wave effect is
used to detect wire discontinuity.

• Short test impulses are sent to a pair of wires
connected to the device. If there is no break in
the wire, the signal energy will be consumed.
If there is a break in the wire’s integrity or
even a breach of its factory insulation, then
the entirety or part of the signal energy will
be reflected back the device.

• provoking method- if a consumer suspected
of energy theft lives in a house, an ampere
meter is installed outside, on the line leading to
the client.
• Then, the distribution company’s car is
ostentatiously parked outside the house,
several employees of the company, dressed
in work wear, leave the car and “hang
around” the neighborhood.

• Sometimes they knock on the suspect’s door
and talk about things completely unrelated to
energy theft. The ampere meters readings are
observed all the while.
• If, resulting from thus improvised event, the
consumer’s energy consumption is clearly
decreased, it can be assumed they have an
illegal connection

• Confidential Phone Call - the most common
assistance in detecting electricity theft are...phone calls
from people who, willing to perform their “civic duty”,
inform distribution companies. However, it can be
sensed from the tone of conversation that a common
motive for making the phone call and exposing a
neighbor is: why should he have it better than me? Or
just disputes between neighbors.
• Experience shows that information on energy theft
is not always true. Sometimes it is just a form of
settling grudges

Conclusion
• Clients of the current electric power system, also
being consumers of electricity, at times make
attempts, with varying degrees of success, at stealing
that energy. The main reason behind the theft
phenomenon is the desire to save money.
• Moreover, the practice is facilitated by the power line
and meters being physically accessible.
• Financial losses caused by dishonest clients incline
electric energy distributors to employ increasingly
sophisticated methods aimed at detection of illegal
connection to the network and attempts at tampering
with the meter’s metrological properties.

Financial losses caused by dishonest clients incline
electric energy distributors to employ increasingly
sophisticated methods

Conclusion
• Among the many known methods of theft, the most
popular ones are: making a concealed connection
and a mechanical blockade of the analog
mechanism.
• Energy theft by tampering with a digital smart
meter is much more difficult and requires
specialized knowledge, which greatly narrows the
circle of clients whose specialized knowledge enables
them to perform unauthorized parameterization of the
meter. Regardless the of theft technique, the system
operator has a wide variety of effective methods to
detect frauds at their disposal.

Energy theft by tampering with a digital smart
meter is much more difficult and requires specialized
knowledge

Conclusion
• From the network metrological properties’
analysis, dividing the network into fragment
by use of a meter, to histogram and
consumer profiling-based analysis.
• It should be noted that energy theft is not a
new phenomenon, and the development of
smart software.

DNA: Analysis of electricity theft in
India
• https://youtu.be/DrkfZ9Pjwuk

Punishments for Electricity Theft In
India
• Section 135 to section 150 talks about the penalties.
• Section 136 – Punishment when the theft of electric materials or lines occurs
• Section 137 – Punishment for receiving stolen property
• When a person dishonestly receives any stolen electric material or wire shall
be liable to Imprisonment which may exceed up to 3 years, or, Fine, or Both
• Section 138 – Punishment for having a malafide intention
• Section 139 – Negligently damaging or breaking works
• Section 140 – Penalty for intentionally causing harms to works
• Section 141 – Demolishing public lamps
• Section 142 – Penalty for not complying with the directions given by
the Appropriate Commission
• Section 146 – Punishment for not complying with the directions or orders
• Section 148 – Penalty for the work which belongs to the Government
• Section 149 – Offences by Companies
• Section 150 – When a person abets or instigates the commission of an offence
• When the member of the Electricity Board or supplier enters into an
agreement to restrain, to conceal some information related to the power theft,
is liable to the punishment of imprisonment up to 3 years or fine or both.

References
• Are smart meters safe from hackers?
• https://www.telegraph.co.uk/property/smart-living/what-do-you-know-about-
smart-meters/
• Collusion and fraud detection on electronic energy meters: a use case of
forensics investigation procedures
• https://www.ieee-security.org/TC/SPW2014/papers/5103a065.PDF
• Cyber Security Issues in Smart Meter and Their Solutions
• http://paper.ijcsns.org/07_book/201803/20180314.pdf
• Saubhagya Dashboard
• https://saubhagya.gov.in/
• The Most Frequent Energy Theft Techniques and Hazards in Present Power
Energy Consumption
• http://www.salvage-project.com/uploads/4/9/5/5/49558369/cpsr-
sg2016_paper_15.pdf
• Theft of electricity
• https://en.wikipedia.org/wiki/Theft_of_electricity

Collusion and Fraud Detection on Electronic Energy Meters

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