Security is a pretty serious issue for smart meters, because unlike mechanical meters, smart meters have a relay in them and thus can be turned on and off remotely, whereas an old mechanical meter required somebody coming to your house to turn it on or off. With the relay, the device can be remotely disconnected, meaning if someone wanted to hack the network they can create all kinds of problems. We are talking more than just theft of services, terrorist attacks are in fact possible.
We were concerned about this and looked at some of the security specs that had been written and unfortunately we haven't seen the most robust security specs in the US. Recently this situation was also investigated and addressed by the FBI, which believes this type of hacking will become more widespread.
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