tamperfinderThe technology behind Power theft has turned to a sophisticated nature and sleuths globally put their heads together to find a solution to Power theft or to design a tamper-free energy meter. The R&D behind Power theft is moving faster than any advanced metering technology. As the electricity meter turns high end, so is the case of Power theft. Cryptocurrency business requires a large quantity of electricity hence the perpetrators opt for free electricity by way of performing various kinds of Power theft which helps the metering equipments unrecorded or under-recorded. An attempt is made to highlight the incidents of cryptocurrency making by performing Power theft globally.
Cryptocurrency is any form of currency that is digitally or virtually uses cryptography to safeguard transactions, and practices encryption to confirm communications. It has no issuing or regulating authority, but an alternative uses a distributed system to note transactions and release fresh units. It depends on no banks to verify transactions and provides anyone globally to send and receive payments. We normally exchange physical currency notes and other financial instruments. Instead of that only digital transactions are made. The transference of funds under cryptocurrency are logged in a public register and Cryptocurrency is deposited in digital files. Advanced coding of data and transactions between public records are required and these are done by encryption which ensures security to the system.
Cryptocurrency units are generated over a course of a process called ‘mining ‘which comprises the usage of a computer algorithm to crack intricate mathematical tribulations that produce coins. Users can also purchase the coins from dealers, then stock and use those using cryptographic folders. Nothing is physical or noticeable and all that a person possesses is a key that lets to transfer a unit of quantity between individuals and that too no trustworthy intermediary is involved. Examples of Cryptocurrencies are Bitcoin, Ethereum, Ripple etc of which Bitcoin is the most popular and transacted one. The task of keeping safely the cryptocurrency is cumbersome, lest it would be hacked. These are stacked in either a Hot wallet storage ie online software to guard the secluded keys to the own assets of an individual or Cold wallet storage or hardware wallets which uses electronic devices to shelter to credits of an individual.
A lot of computers and accessories are used to create cryptocurrencies and hence turn to current intensive activity. To get free electricity is the dream of any entrepreneur. The power utility in the largest state in Malaysia Sarawak Energy unearthed a huge Power theft, from isolated premises at Demak Laut. The computers and other hardware used for this unlawful activity have a value of 0.5 million USD. The technology behind this power theft was simple ie direct tapping from underground cable. ie. a portion of the electricity used by the premises will not pass through the meter completely and get measured. It is estimated that about 70000 USD per month was lost due to this power theft alone to the exchequer in Malaysia. The scrupulous work was dangerous too as they tap electricity from the substation itself. For this activity to get executed clandestinely and safely, the assistance of the power utility staff has been received showing a case of the fence itself eating the crops.
Sarawak Energy’s through various campaigns cautioned the consumers not to venture into such risky and unlawful activities and advised them not to entertain anybody’s claim to reduce electricity bills. In a power utility at Perak on the west coast side of Malaysia every third premise ventures into mining of bitcoin at the pleasure of free electricity by way of power theft.
Globally the cryptocurrency mining is flourishing day by day. A single bitcoin transaction may require about 1200 units of electricity. This is nearly twice more than the average consumption of a household consumer in the USA. This would impart an idea about the quantum of electricity required in the cryptocurrency mining sector globally. Since this is an illegal activity in many countries, the perpetrators are likely to be booked and hence they may perform various kinds of Power Theft to keep the meeter reading intact to escape from the cover of anti-power theft squads. Many power utilities are now keeping a tab on consumers who report abnormal increases in consumption also. It is estimated that 0.5% of electricity is used in this industry globally. The UK has initiated a few proactive steps to control bit mining of cryptocurrency and related Power theft incidents. In a single case of Power theft, a consumer was convicted and fined for the twin illegal activity. When premises remain closed for a long time, these unscrupulous miners steal electricity from those electricity meters and use it illegally to mine cryptocurrencies. Near Leicestershire L, a consumer was fined 44000 USD and jailed for his involvement in both cases. In this typical case, the perpetrator stole electricity from Firefly nightclub in Loughborough which was closed for the summer holidays. However, mining is legally acceptable in countries like Canada and other developed countries. But people may tend to steal electricity to avoid excess payment of electricity.
The power utilities in Malaysia is slowly falling into the hands of those who steal electricity for mining bitcoins. The authorities realised the issue and initiated investigations to bring them to book. Local dailies carry the report of numerous Power theft cases for bitcoin mining and it would become another cause for Power theft apart from marijuana growing inside houses. As far as theft of electricity in these places are concerned, tapping from underground cable is a common modus operandi. While it is difficult to execute such a type of Power theft, it is equally difficult to trace the origin without any source information about the crime. Power theft results in both electrocution and overloading of lines apart from direct revenue losses. Both these are heavy losses to a country and pull back from development.
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