How to Stop Water Flow Meter Fraud


The New York Times reports that the U.S. Consumer Financial Protection Bureau is investigating how water flow meters fraud is spreading from home to the home. 

While the investigation has focused on a handful of companies, a broader, global pattern of water flow meter fraud is being uncovered. 

The investigation has uncovered fraudulent water meter applications and fraudulent billing practices, according to a report in the Times. 

This includes companies that claim to have a contract with a water source but actually provide water from their own well. 

For instance, a company called M2 Systems claims it provides water to homes in New York City. 

M2 claims that the company has a contract to provide water to New York residents for the city’s public water system, but when it receives the water, the contract says it can charge for the water. 

But the company doesn’t actually have a water delivery contract. 

Instead, the company claims to have contracts with other providers in New Jersey, Virginia, and Pennsylvania. 

According to the report, M2’s fraud was uncovered by a whistleblower, who said he saw a “water meter that was attached to a water pump in a home.” 

“When it got a little closer, I realized that it was a water meter that could be attached to the pump, so it was just a very confusing situation,” said the whistleblower, the Times reports. 

“It’s a very complex process,” said Joe M. Haddad, the acting CFPB director.

“You’re trying to understand how water flows through this device, and how they make the connection, and you’re trying and trying and hoping that you get it right.” 

While this type of fraud is widespread, it’s becoming a big problem in California, where a new state law was passed in January to address the problem. 

It requires companies to notify customers when they are being billed for water that is not coming from a supply they actually own. 

Additionally, the new law requires water suppliers to post signs in their properties stating that the water they are selling is not actually their own water.

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