Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7112

Introduced by Hon, Junie E. Cua
Lone District, Quirino

AN ACT
DEFINING ECONOMIC SABOTAGE IN COMPUTER-RELATED OFFENSES AND
AMENDING REPUBLIC ACT NO. 10175, OTHERWISE KNOWN AS THE
“CYBERCRIME PREVENTION ACT OF 2012"

EXPLANATORY NOTE

The developments in information and communications technology has allowed cyber
criminals to reach a vast multitude of Filipinos online resulting in high victimization rates for
computer related fraud and forgery specifically through the social engineering scam known as
“phishing”. In recent years, we have seen a rapid increase in cases of “phishing”, leading to
losses amounting to hundreds of millions of pesos to the banking sector and the banking public
in general.

As the country entered into periods of community quarantines to fight the pandemic
brought about by COVID-19, most of the exchanges in goods and services and the
corresponding payment transfers and other financial transactions, shifted to digital modes and
online. The high demand for online financial transactions further exacerbated the increase of
“phishing” cases. Without much information and awareness, many fell prey into the unlawful
activities of cybercriminals adding to the mounting economic burden of bank clients and
general Filipino public.

It is in this light that this bill is being introduced in order to curb the exploitation of
information and communications technology as a means of perpetrating crimes in bulk and at
massive scales. The current law does not provide hefty penalties to massive fraud via
unauthorized transactions.

The steady rise of cybercrimes when left unattended and not prosecuted, will not only
deprive Filipinos of their hard-earned money but will also undermine and render into disrepute
the financial system. “Phishing” and other new forms of cyberfraud have an adverse impact
on the banking industry and a deleterious effect on the confidence of clients to conduct online
banking at such a time when they need it the most. Given the health crisis that the country is


facing, the hard life that our people are going through, and their critical dependency on online
banking, what the fraudsters are doing is a form of economic sabotage.

In view of the foregoing, the passage of this bill into law is earnestly sought.

JUNIE E. CUA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

7 EIGHTEENTH CONGRESS
Second Regular Session

House Bill No,_7712

Introduced by Hon. E.Cua
Lone District, Quirino
AN ACT

DEFINING ECONOMIC SABOTAGE IN COMPUTER-RELATED OFFENSES AND
AMENDING REPUBLIC ACT NO. 10175, OTHERWISE KNOWN AS THE
“CYBERCRIME PREVENTION ACT OF 2012"

EXPLANATORY NOTE

The developments in information and communications technology has allowed cyber
criminals to reach a vast multitude of Filipinos online resulting in high victimization rates for
computer related fraud and forgery specifically through the social engineering scam known as.
“phishing”. In recent years, we have seen a rapid increase in cases of “phishing”, leading to
losses amounting to hundreds of millions of pesos to the banking sector and the banking
public in general.

As the country entered into periods of community quarantines to fight the pandemic
brought about by COVID-19, most of the exchanges in goods and services and the
corresponding payment transfers and other financial transactions, shifted to digital modes and
online. The high demand for online financial transactions further exacerbated the increase of
“phishing” cases. Without much information and awareness, many fell prey into the
unlawful activities of cybercriminals adding to the mounting economic burden of bank clients
and general Filipino public.

It is in this light that this bill is being introduced in order to curb the exploitation of
information and communications technology as a means of perpetrating crimes in bulk and at
massive scales. The current law does not provide hefty penalties to massive fraud via
unauthorized transactions.

The steady rise of cybercrimes when left unattended and not prosecuted, will not only
deprive Filipinos of their hard-earned money but will also undermine and render into
disrepute the financial system. “Phishing” and other new forms of cyberfraud have an
adverse impact on the banking industry and a deleterious effect on the confidence of clients
to conduct online banking at such a time when they need it the most. Given the health crisis

vy cael

BF


that the country is facing, the hard life that our people are going through, and their critical
dependency on online banking, what the fraudsters are doing is a form of economic sabotage.

In view of the foregoing, the passage of this bill into law is earnestly sought.

x Sece/LE


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. ae

Introduced by Hon. Junie E. Cua
Lone District, Quirino

AN ACT
DEFINING ECONOMIC SABOTAGE IN COMPUTER-RELATED OFFENSES AND
AMENDING REPUBLIC ACT NO. 10175, OTHERWISE KNOWN AS THE
“CYBERCRIME PREVENTION ACT OF 2012"

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 2 of Republic Act No. 10175 is hereby amended to read as follows:

"Section 2. Declaration of Policy.— The State recognizes the vital role of information
and communications industries such as content production, telecommunications,
broadcasting electronic commerce, and data processing, in the nation’s overall social
and economic development. The State also recognizes the importance of providing an
environment conducive to the development, acceleration, and rational application and
exploitation of information and communications technology (ICT) to attain free, easy,
and intelligible access to exchange and/or delivery of information; and the need to
protect and safeguard the integrity of computer, computer and communications systems,
networks, and databases, and the confidentiality, integrity, and availability of
information and data stored therein, from all forms of misuse, abuse, and illegal access
by making punishable under the law such conduct or conducts. THE STATE
LIKEWISE ACKNOWLEDGES THAT THE CAPACITY OF INFORMATION
AND COMMUNICATIONS TECHNOLOGY TO BE USED AS A MEANS OF
PERPETRATING CRIME IN BULK AND AT A SCALE PREVIOUSLY
UNHEARD OF, HAS BEEN EXPLOITED BY CRIMINALS AND CRIMINAL
SYNDICATES IN PERPETRATING FRAUDULENT ACTIVITIES TO
UNDERMINE THE TRUST OF THE PUBLIC IN THESE NEW
TECHNOLOGIES AND THE EMERGING NEW ECONOMY IT SUPPORTS.
DUE TO THIS DELETERIOUS EFFECT ON THE ECONOMY, THE STATE
DECLARES THAT THE COMMISSION OF CERTAIN CRIMES UNDER THIS


SEC.

SEC.

ACT USING INFORMATION AND COMMUNICATIONS TECHNOLOGY IS A
FORM OF ECONOMIC SABOTAGE AND A HEINOUS CRIME AND SHALL
BE PUNISHABLE TO THE MAXIMUM LEVEL ALLOWED BY LAW. In this
light, the State shall adopt sufficient powers to effectively prevent and combat such
offenses by facilitating their detection, investigation, and prosecution at both the
domestic and international levels, and by providing arrangements for fast and reliable
international cooperation.”

2. Section 3 of the same Act is hereby amended to read as follows:

“Section 3. Definition of Terms. — For purposes of this Act, the following terms are
hereby defined as follows:

XXX

(C) BULK EMAIL/MASS MAILER REFERS TO A SERVICE OR SOFTWARE
USED TO SEND ELECTRONIC MAIL IN MASS.

() Communi
(E) Computer x x x;
(F) Computer data x x x;

ition X XX;

(G) Computer program x x x;
(A) Computer system x x x;
@ Without right x x x;
(Cyber x x x;

(K) Critical infrastructure x x x;
(@) Cybersecurity x x x;

(M) Database x x x;

(N) Interception x x x;

(O) PHISHING REFERS TO A SOCIAL ENGINEERING SCHEME TO
OBTAIN OR ANY ATTEMPT TO OBTAIN SENSITIVE INFORMATION
SUCH AS USERNAMES, PASSWORDS, BANK ACCOUNT DETAILS, CREDIT
CARD, DEBIT CARD, AND E-WALLET INFORMATION AMONG OTHER
ELECTRONIC CREDENTIALS BY DISGUISING AS A TRUSTWORTHY
ENTITY IN AN ELECTRONIC COMMUNICATION FOR THE PURPOSE OF
ILLEGALLY ACCESSING A  VICTIM’S ONLINE ACCOUNT FOR
FINANCIAL GAIN.

() Service provider x x x;
(Q) Subscriber's information x x x;
(R) Traffic data or non-content data x x x.”

3. Section 4(b) of the same Act is hereby amended to read as follows:


“Section 4, Cybercrime Offenses. — The following acts constitute the offense of
cybercrime punishable under this Act

XXX
(b) Computer-related Offenses:

(1) Computer-related Forgery. — x x x

(2) Computer-related Fraud. — x x x

(3) Computer-related Identity Theft. — x x x

(4) ECONOMIC SABOTAGE - ANY OFFENSE PERPETRATED UNDER THIS
SUBSECTION USING A BULK E-MAIL, MASS MAILER OR ANY SERVICE,
SOFTWARE, OR OTHER METHOD OF DELIVERY CALCULATED TO
UTILIZE THE MASSIVE REACH OF THE INTERNET TO REACH THE
MAXIMUM NUMBER OF VICTIMS, PURSUANT TO A “PHISHING” OR
OTHER SIMILAR FRAUDULENT SCHEME, SHALL BE PUNISHED AS AN
ACT OF ECONOMIC SABOTAGE.”

SEC. 4. Section 8 of the same Act is hereby amended to read as follows:

“Section 8. Penalties. — Any person found guilty of any of the punishable acts
enumerated in Sections 4(a) and 4(b) of this Act shall be punished with imprisonment of
prision mayor or a fine of at least. Two hundred thousand pesos (PhP200,000.00) up to
@ maximum amount commensurate to the damage incurred or both.

Any person found guilty of the punishable act under Section 4(a)(5) shall be punished
with imprisonment of prision mayor or a fine of not more than Five hundred thousand
pesos (PhP500,000.00) or both.

If punishable acts in Section 4(a) are committed against critical infrastructure, the
penalty of reclusion temporal or a fine of at least Five hundred thousand pesos
(PhPS00,000.00) up to maximum amount commensurate to the damage incurred or
both, shall be imposed.

ANY PERSON FOUND GUILTY OF AN OFFENSE THAT CONSTITUTES
ECONOMIC SABOTAGE UNDER SECTION 4(B)(4) SHALL BE PUNISHED
WITH LIFE IMPRISONMENT AND A FINE OF NOT LESS THAN ONE
MILLION PESOS (P1,000,000.00) BUT NOT MORE THAN FIVE MILLION
PESOS (P5,000,000.00).

Xxx.”

SEC. 5. Separability Clause. If any separable provision of this Act is declared
unconstitutional, the remaining provisions shall continue to be in force.

SEC. 6. Repealing Clause. All laws, decrees, executive orders, rules and regulations or parts
thereof which are inconsistent with this Act are hereby repealed, amended or modified
accordingly.


SEC. 7. Effectivity. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation