If people want to reduce their water bills, they could hack the sensors. The cyber attacks against them can be active, where commands are issued to them, or passive, where the data is taken. The sensors are unattended and hang on the meter, outside the house, and so they are easily tampered with.

Communications are not encrypted (largely due to higher costs) and so they are easily intercepted, faked or even jammed. The problem with the wireless water meters is that they are vulnerable because of the wireless medium they use. вЂњBut it could also be a tool for Big Brother,вЂќ a reference to the totalitarian figurehead of George OrwellвЂ™s novel, 1984. вЂњItвЂ™s like an electronic cash register for the utility,вЂќ McNabb said. California in particular is racing ahead in deployment, and 25 manufacturers are making the smart meters now. The market researcher defines a smart meter as a component of a smart grid, with two-way communications between the meter and the water utility that allows the utility to get readings on an hourly (or more frequently) basis and issue commands to the meter. And Pike predicts that the worldwide installed base of smart water meters will increase from 5.2 million in 2009 to 31.8 million by 2016. The smart water meter market is expected to total $4.2 billion between 20, according to market researcher Pike Research. Utilities can also resolve billing disputes better, provide more customer service, enforce water conservation, and identify illegal water connections. Water meters with wireless attachements can become sensors for the utility and two-way communications systems. They can also detect water leaks more precisely, based on water usage patterns throughout the population. ItвЂ™s easier for utilities to monitor usage on any given day and send bills more frequently. HereвЂ™s McNabbвЂ™s white paper on the topic.ДЄdding computer technology throughout the infrastructure helps bring down costs. For instance, some meters broadcast a wireless signal so that a meter reader can simply drive by, detect the signal, and record it electronically. Utilities have started to put in wireless water meters that are easier to read and less costly. Water companies lose revenue when those meters get old and sediment builds up in them so that they measure lower water usage. Lots of water meters are still mechanical devices. Water could be similar, and it winds up increasing the rates for others.вЂќ вЂњElectric utilites assume they use about 10 percent losses to theft each year. вЂњThe energy theft when it comes to water theft is billions of dollars a year,вЂќ McNabb (pictured) said.

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