THIRTEENTH CONGRESS OF THE REPUBLIC 
ln REGaAR SESSION 
OF THE PHILIPPINES 
50 
IVED 
SENATE 
S.B. NO.. 17 
INTRODUCED BY SENATOR MAGSAYSAY, IR. 
I/ 
EXPLANATORY NOTE 
The world of information technology has such explosive potential for 
prosperity. The internet offers a convenient way to transact and deliver almost 
all consumer goods and services that can take an electronic form ---- software, 
newspaper and reading publications, music recordings, airline tickets, shares and 
securities, etc. The use of computer gadgets abbreviate and facilitate exchange of 
transactions. In sum, IT paves the way towards real growth at an unimaginable 
time and has launched positive effects on productivity. 
But like every technology that advances society, there can also be 
some drawback. In the case of the development of the IT sector and the 
flourishing of the utilization of computer equipment, the requirements for 
a strong framework defining computer-related crimes and the 
establishment of capabilities vis-a-vis law enforcement agencies to meet 
potential cyber-crimes are consideration that must be addressed. 
The need for a special law addressing the concerns of computer 
owners, cyber users and the entire consumer sector as a whole 
heightened with the occurrence last year of the so-called “ILOVEYOU” 
messages or “lovebug“ computer virus. The virus devastated tens of 
thousands of computer systems in at least twenty (20) countries, causing 
damage estimated at Php 2.6 billion on the first day of the infestation. 
Based on foreign reports, the “lovebug“ shut down e-mail systems in 
major companies world-wide and has penetrated the Pentagon, the 
Central Intelligence Agency (CIA) and even the British Parliament. 
This legislation is submitted and is highlighted by the following 
important provisions: 
1. It defines computer fraud and the offenses covered by the term 
”computer-related fraudalent activities.” 
It covers such acts as 
computer fraud, computer forgery, damage to computer data or 
computer programs, computer sabotage, unauthorized access and 
unauthorized interception. 
It provides the necessary penal provisions that must be imposed 
upon the violators of the offense, both fine and imprisonment. 
It accords authority to the National Security Council to conduct 
investigations on computer related crimes vis-a-vis its effects on 
national security. 
2. 
3. 


With the situations at hand and the necessity of a relevant law to 
combat computer fraud and similar activities, the bill’s early approval is 
earnestly sought. 


THIRTEENTH CONGRESS OF THE REPUBLIC 
1% REGULAR SESSION 
OF THE PHILIPPINES 
SENATE 
S.B.NO. 1789 
INTRODUCED BY SENATOR MAGSAYSAY, JR. 
AN ACT 
PROVIDING 
PROTECTION 
AGAINST 
COMPUTER 
FRAUD 
AND 
PROVIDING PENALTIES THEREFOR AND FOR OTHER PURPOSES 
ABUSES AND OTHER CYBER-RELATED FRAUDULENT ACTIVITIES, 
Be it enacted by the Senate and the House of Representatives of the 
Republic of the Philippines in Congress assembled 
SECTION 1. Title - This Act shall be known and cited as the 
"Anti-Computer Fraud and Abuses Act of 2004" 
SEC. 2. Policy Statement - It is hereby declared a policy of the 
State to create the appropriate policy and institutional environment to 
rationalize, accelerate the use, application and exploitation of 
information technology as a tool and as a development strategy for 
modernization and economic development. 
In furtherance of the said policy statement, the government shall 
exert positive efforts to provide protection against all forms of computer 
fraud and abuses and other cyber-related fraudulent activities committed 
against vital government and private financial institutions. 
SEC. 3. 
Punishable Acts - The following acts/offenses are 
punishable under this Act. 
3.1. 
3.2. 
3.3. 
Computer Fraud 
- 
The input, alteration, erasure or 
suppression of computer data or computer programs, or 
other interference in the course of data processing, that 
influences the result of data processing thereby causing 
economic or possessory loss of another person with the 
intent of procuring an unlaw€ul economic gain for himself or 
for another persons; 
Computer Forgery - 
The input, alteration, erasure or 
suppression of computer data or computer programs, or 
other interference in the course of data processing, in a 
manner or under such conditions, as prescribed national 
law, that would constitute the offense of forgery if it had 
been committed with respect to a traditional object of an 
offense; 
Damage to Computer data or Computer Programs - The 
erasure, alteration damaging, deterioration or suppression 
of computer data or computer programs without right; 


3.4. 
3.5. 
3.6. 
3.7. 
Computer sabotage - The input, alteration, erasure or 
suppression of computer data or computer programs, or 
interference with computer systems, with the intent to 
hinder 
the 
functioning 
of 
a 
computer 
or 
of 
a 
telecommunications system; 
Unauthorized Access 
- 
The access without right to a 
computer system or network by infringing security 
measures; 
Unauthorized Interception 
- 
The interception, made 
without right and by technical means, of communications 
to, from and within a computer system or network. 
Whoever --- 
a. knowingly accesses a computer without authorization or 
exceeds authorized access, and by means of such 
conduct obtains information that has been determined by 
the Government pursuant to regulations requiring 
protection against unauthorized disclosure for reasons of 
national security or foreign relations, or any restricted 
data, with the intent or reason to believe that such 
information so obtained is to be used to the injury to the 
Philippines, or to the advantage of any foreign nation; 
b. internationally access a computer without authorization 
or exceeds authorized access, and thereby obtains 
information contained in a financial record of a financial 
institution, or of a card issuer or contained in a file of a 
consumer reporting agency on a consumer; 
c. internationally without authorization to access any 
computer of a department or agency of the government of 
the Philippines or any public or private financial 
institution operating under Philippine Laws, accesses 
such a computer of the department or agency that is 
exclusively for the use of the Government of the 
Philippines, or in the case of a computer not exclusively 
for such use, it is used by or for the Government of the 
Philippines or, in the case of a computer not exclusively 
for such conduct affects the use of the Government’s 
operation of such computer; 
d. knowingly and with intent to defraud, accesses a vital 
government or private financial institution or agencies as 
indicated in the IRR without authorization, or exceeds 
authorized access, and by means of such conduct further 
the intended fraud and obtain anything of value, unless 
the object of the fraud and the thing obtained consist 
only of the use of the computer; 
e. internationally accesses a national government computer 
without authorization and by means of one or more 
instances of such conduct alters, damages, or destroys 


information in any computer, or prevents authorized use 
of any such computer or information, and thereby --- 
1. causes loss to one or destroys property of value; 
2. modifies or impairs, or potentially modifies or impairs 
the medical examination, medical diagnosis, medical 
treatment, or medical care of one or more individuals; 
or 
f. knowingly and with intent to defraud traffics in any 
password or similar information through which a 
computer may be accessed without authorization, if such 
trafficking affects inter-country or foreign trade or such 
computer is used by the government of the Philippines in 
its transactions. 
For purposes of this above-mentioned enumeration of offenses, the 
following terms shall be defined as follows: 
a. 
Computer shall refer to an electronic, magnetic, optical, 
eletromechanical, or other high speed data processing devise 
performing logical, arithmetic, or storage functions, and 
includes any data storage facility or communications facility 
directly related to or operating in conjunction with such 
devise, but such term does not include an automated 
typewriter or typesetter, a portable hand held calculator, or 
other similar device; 
National government computer shall refer to a computer - 
1. 
exclusively for the use of a government and private 
financial institutions operating under Philippine laws, 
or, in the case of a computer not exclusively for such use, 
by a financial institution or any of the agencies of the 
government and the conduct constituting the offense the 
use of the financial institution’s operation or the 
Government’s operation of computer; or 
which is one of the two or more computers used in 
committing the offense, not all which are located in the 
same place/areas. 
b. 
2. 
SEC. 4. 
Penal Provisions 
- 
Any person who violates any 
provision of this Act shall be punishable with imprisonment for not less 
than eight (8)years nor more than twenty (20) years and a fine of one 
hundred thousand pesos (Php100,OOO.OO) or equal in amount to the 
damage involved in the violation, whichever is applicable: Provided, That 
if the person violating any provisions of this Act is a juridical person, the 
penalty herein provided shall be imposed on its president or secretary 
and/or members of the board of directors or any of its officers and 
employees who may have directly participated in the violation. 
Any government official or employee who directly commits the 
unlawful acts defined in this Act or is guilty of gross negligence of duty or 
connives with or permits the commission of any of the said unlawful or 


prohibited acts shall, in addition to the penalty prescribed in the 
preceding paragraph, be dismissed from the service with prejudice to his 
reinstatement and with disqualification from voting or being voted for in 
any election and from appointment to any public office. 
SEC. 5. Authority of the National Security Council - The 
National Security Council (NSC) shall have, in addition to other 
government agencies concerned, the authority to investigate offenses 
under this section, particularly if the violation committed affects the 
national security of the country. 
SEC. 6. Miscellaneous - Without prejudice to the provisions of 
this Act, nothing herein provided shall divest or deprive courts of justice, 
civil or military, of their jurisdiction, in the proper cases, over civil or 
criminal suits or actions arising from acts or omissions under this law. 
SEC. 7. Implementing Rules and Regulations (IRR) - The 
National Computer Center in cooperation with the Departments of 
Finance and Science and Technology, the National Security Council and 
other concerned agencies shall formulate the necessary rules and 
regulations for the effective implementation of this Act. 
SEC. 8. Separability Clause - If for any hrovision of this Act is 
held invalid, the other provisions of this Act not affected shall remain in 
full force and effect. 
1 
SEC. 9. Repealing Clause - All laws, decbees, orders, rules and 
regulations, or portion thereof inconsistent wid this Act are hereby 
repealed or modified accordingly. 
SEC. 10. Effectively - This Act shall take/ effect fifteen (15) days 
after its complete publication in the Official Gazette or in at least two (2) 
newspaper of general publicati n, whichever comes earlier. 
I 
9 
Approved,