Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

HOUSE BILL No._5723

Introduced by Honorable Ramon “Red” H. Durano VI

EXPLANATORY NOTE

This bill seeks to amend Republic Act NO. 8484, otherwise known as an act
regulating the issuance and use of access devices, prohibiting fraudulent acts
committed relative thereto, providing penalties, and for other purposes.

The rampant clamor of the banking sector and the business sectors of the
Proliferation of cases involving Bank fraud particularly ATM fraud has greatly
affected the integrity of the banking and business sector all throughout the country.
‘The advances in information technology on access devices has been taken advantage
by criminals and criminal syndicates in perpetuating fraudulent activities that are
inimical to the country’s financial sector and undermine the public’s trust towards the
banking industry. It is in the state’s interest to declare that commission of a crime
using access devises is a form of economic sabotage and thus needs to be punished in
the maximum level allowed by law. The need to protect the integrity of the Banking
Industry is paramount. The clamor to protect the people from all forms of banking
fraud, if left unheeded, could have a serious implication on the country’s booming
economy.

Appropriately, the need to amend the law is thus warranted. This amendment
seeks to ensure the integrity of the country’s economic advances and protect the
Philippine banking industry as a whole.

In view of the foregoing, the approval of this bill is urgently requested

“Red” H. DURANO VI


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

Seventeenth Congress
First Regular Session

HOUSE BILL NO._ 9723

Introduced by Honorable Ramon “Red” H. Durano VI

AN ACT AMENDING REPUBLIC ACT NO. 8484, OTHERWISE
KNOWN AS AN ACT REGULATING THE ISSUANCE AND USE OF
ACCESS DEVICES, PROHIBITING FRAUDULENT ACTS.
COMMITTED RELATIVE THERETO, PROVIDING PENALTIES,
AND FOR OTHER PURPOSES

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

SECTION I. ~ Section 2 of RA 8484 is hereby amended to read as follows:
Section 2. Declaration of policy. ~ The State recognizes the recent advances in
technology and the widespread use of access devices in commercial transactions
Toward this end, the State shall protect the rights and define the liabilities of parties in
such commercial transactions by regulating the issuance and use of access devices

THE STATE LIKEWISE ACKNOWLEDGES THAT THE ADVANCES IN
INFORMATION TECHNOLOGY ON ACCESS DEVICES HAS BEEN
TAKEN ADVANTAGE BY CRIMINALS AND CRIMINAL SYNDICATES IN
RAUDULENT ACTIVITIES THAT ARE INIMICAL TO
THE COUNTRY’S FINANCIAL SECTOR AND MADE FINANCIAL
INSTITUTIONS SUFFER HUGE MONETARY LOSSES AND MAY
UNDERMINE THE TRUST OF THE PUBLIC TO THE BANKING
INDUSTRY OF THE COUNTRY. AND DUE TO THIS PRECARIOUS
EFFECT TO THE ECONOMY, THE STATE SHALL DECLARE THAT
COMMISSION OF A CRIME USING ACCESS DEVICES AS A FORM OF
ECONOMIC SABOTAGE AND A HEINOUS CRIME WITH PENALTIES TO.
BE IMPOSED UP TO THE MAXIMUM LEVEL ALLOWED BY LAW.

SECTION 2. Section 3 of RA 8484 is hereby amended to read as follows:
Section 3. Definition of terms. — For purposes of this Act, the terms:
(@) Access Device — means any card, plate, code, account number, electronic serial
number, personal identification number, or other telecommunications service,


equipment, or instrumental identifier, or other means of account access that can be
used to obtain money, good, services, or any other thing of value or to initiate a
transfer of funds (other than a transfer originated solely by paper instrument);

(©) Counterfeit Access Device — means any access device that is counterfeit,
fictitious, altered, or forged, or an identifiable component of an access device on
counterfeit access device OR ANY FRAUDULENT COPY OR REPRODUCTION
OF A VALID ACCESS DEVICE;

(©) Unauthorized Access Device ~ means any access device that is stolen, lost,
expired, revoked, canceled, suspended, or obtained with intent to defraud:

(@) Access Device Fraudulently Applied for ~ means any access device that was
applied for or issued on account of the use of falsified document, false information,
Fictitious identities and addresses, or any form of false pretense or misrepresentation:
(c) Consumer — means a natural person:

(9 Credit Card — means any card, plate, coupon book, or other credit device existing
for the purpose of obtaining money, goods, property, labor or services or anything of
value on credit;

(8) Device Making or Altering Equipment ~ means any equipment, mechanism or
impression designed or primarily used for making or altering or re-encoding an access
device or a counterfeit access device;

(h) Finance Charges — represent the amount to be paid by the debtor incident to the
extension of credit such as interest or discounts, collection fees, credit investigation
fees, and other service charges;

(i) Open-end-credit plan — means a consumer credit extended on an account pursuant
toa plan under which:

1) the creditor may permit the person to make purchase or obtain loans, from
time to time, directly from the creditor or indirectly by use of credit card, or other
service;

2) the person has the privilege of paying the balance; or

3) a finance charge may be computed by the creditor from time to time on an
unpaid balance.()) Penalty Charges ~ means such amount, in addition to interest,
imposed on the credit card holder for non-payment of an account within a prescribed
period;

(k) Produce — includes design, alter, authenticate, duplicate or assemble:

() Trafficking — means transferring, or otherwise disposing of, to another, or
obtaining control of, with intent to transfer or dispose of;

(m) HACKING — REFERS TO THE UNAUTHORIZED ACCESS INTO OR
INTERFERENCE IN A COMPUTER SYSTEM/SERVER OR INFORMATION
AND COMMUNICATION SYSTEM; OR ANY ACCESS IN ORDER TO
CORRUPT, ALTER, STEAL, OR DESTROY USING A COMPUTER OR
OTHER SIMILAR INFORMATION AND COMMUNICATION DEVICES,
WITHOUT THE KNOWLEDGE AND CONSENT OF THE OWNER OF THE
COMPUTER OR INFORMATION AND COMMUNICATIONS SYSTEM,
INCLUDING THE INTRODUCTION OF COMPUTER VIRUSES AND THE
LIKE, RESULTING IN THE CORRUPTION, DESTRUCTION,
ALTERATION, THEFT OR LOSS OF ELECTRONIC DATA MESSAGES OR
ELECTRONIC DOCUMENTS;

(n) ATM CARD OR AUTOMATED TELLER MACHINE CARD -INCLUDES
ANY CARD OF WHATEVER MATERIAL OR FORM INCLUDING ANY
KIND OF DEBIT CARD, BUT NOT A CREDIT CARD, THAT IS ISSUED BY
A BANK OR BUSINESS ENTITY WITH THE INTENTION OF ACCESSING
ANY MACHINE FOR THE DISBURSEMENT OF MONEY, LOADING ANY
CREDIT TO ANY UTILITY OR GIVING OR GRANTING ACCESS TO A



CUSTOMER FOR AN AMOUNT OF MONEY, SERVICE, GOODS OR
ANYTHING OF VALUE. AN ATM CARD SHALL BE CONSIDERED AS AN
ACCESS DEVICE FOR THE PURPOSES OF THIS ACT; AND

(0) SKIMMING —~ A TYPE OF FRAUD WHICH OCCURS WHEN AN ATM IS
COMPROMISED BY A SKIMMING DEVICE, A CARD READER WHICH
CAN BE DISGUISED TO LOOK LIKE A PART OF THE ATM MACHINE
AND WHICH SAVES THE USERS’ CARD NUMBER AND PIN CODE.

SECTION 3. Section 9 of RA 8484 is hereby amended to read as follows:
“Section 9. Prohibited Acts. — The following acts shall constitute access device fraud
and are hereby declared to be unlawful:

(a) producing, using, trafficking in one or more counterfeit access devices;

(b) trafficking in one or more unauthorized access devices or access devices
fraudulently applied for;

(©) using, with intent to defraud, an unauthorized access device;

(d) using an access device fraudulently applied for:

(©) possessing one or more counterfeit access devices or access devices fraudulently
applied for;

(1) producing, trafficking in, having control or custody of, or Possessing device-
making or altering equipment without being in the business or employment, which
lawfully deals with the manufacture, issuance, or distribution of such ‘equipment;

(g) inducing, enticing, permitting or in’ any manner allowing another, for
consideration or otherwise to produce, use, traffic in counterfeit access devices,
unauthorized access devices or access devices fraudulently applied for,

(h) multiple imprinting on more than one transaction record, sales slip or similar
document, thereby making it appear that the device holder has entered into a
transaction other than those which said device holder had lawfully contracted for, or
submitting, without being an affiliated merchant, an order to collect from the issuer of
the access device, such extra sales slip through an affiliated merchant who connives
therewith, or, under false Pretenses of being an affiliated merchant, Present for
collection such sales slips, and similar documents;

(i) disclosing any information imprinted on the access device, such as, but not limited
to, the account number or name or address of the device holder, without the latter's
authority or permission;

@) obtaining money or anything of value through the use of an access device, with
intent to defraud or with intent to gain and fleeing thereafter;

(k) having in one's possession, without authority from the owner of the access device
or the access device company, an access device, or any material, such as slips, carbon
Paper, or any other medium, on which the access device is written, printed, embossed,
or otherwise indicated;

(D writing or causing to be written on sales slips, approval numbers from the
issuer of the access device of the fact of approval, where in fact no such approval was
given, or where, if given, what is written is deliberately different from the approval
actually given;

(m) making any alteration, without the access device holder's authority, of any
amount or other information written on the sales slip;

(n) effecting transaction, with one or more access devices issued to another Person or
Persons, to receive payment or any other thing of value:

(0) without the authorization of the issuer of the access device, soliciting a person for
the purpose of:

1) offering an access device: or

2) selling information regarding or an application to obtain an access device;


(P) without the authorization of the credit card system member or its agent, causing or
arranging for another person to present to the member or its agent, for payment, one
or more evidence or records of transactions made by credit card;

(q) SKIMMING, COPYING OR COUNTERFEITING ANY CREDIT CARD,
ATM OR DEBIT CARD, AND OBTAINING ANY INFORMATION THEREIN
WITH THE INTENT OF ACCESSING THE ACCOUNT AND OPERATING
THE SAME WHETHER OR NOT CASH IS WITHDRAWN OR MONETARY
INJURY IS CAUSED BY A PERPETRATOR AGAINST THE ACCOUNT
HOLDER OR THE DEPOSITARY BANK; OR

(r) POSSESSION OF ANY TYPE OF SKIMMING DEVICE OR ANY
ELECTRONIC GADGET OR EQUIPMENT THAT IS USED TO
PERPETRATE ANY OF THE FOREGOING ACTS.

SECTION 4. Section 10 of RA 8484 is hereby amended to read as follows:
Section 10. Penalties. — Any person committing any of the acts constituting access
device fraud enumerated in the immediately preceding section shall be punished with:
(A) IMPRISONMENT FOR NOT LESS THAN TWELVE (12) YEARS AND
NOT MORE THAN TWENTY (20) YEARS AND A FINE TWICE. THE
EQUIVALENT OF THE AGGREGATE AMOUNT OF ALL AFFECTED OR
EXPOSED BANK ACCOUNTS, BUT THE FINE SHALL NOT BE LESS
THAN FIVE HUNDRED THOUSAND PESOS (500,000.00), IN THE CASE
OF AN OFFENDER WHO IS IN POSSESSION OF TEN (10) OR MORE
COUNTERFEIT ACCESS DEVICES AND/OR UNAUTHORIZED ACCESS
DEVICES AND WAS ABLE TO ACCESS AT LEAST ONE (1) ACCOUNT OR
HAD GAINED CREDIT BY THE FRAUDULENT USE OF ANY OF SUCH
ACCESS DEVICE IN HIS POSSESSION;

(B) IMPRISONMENT FOR NOT LESS THAN SIX (6) YEARS AND NOT
MORE THAN TWELVE (12) YEARS AND A FINE OF THREE HUNDRED
THOUSAND PESOS (P300,000.00) OR TWICE THE EQUIVALENT OF THE
AGGREGATE AMOUNT OF ALL AFFECTED OR EXPOSED BANK
ACCOUNTS, WHICHEVER IS HIGHER, IN THE CASE OF AN OFFENDER
WHO IS IN POSSESSION OF TEN (10) OR MORE COUNTERFEIT ACCESS
DEVICES AND/OR UNAUTHORIZED ACCESS DEVICES BUT WAS NOT.
PROVEN TO HAVE ACCESSED ANY ACCOUNT OR HAVE GAINED ANY
CREDIT THROUGH ANY OF THE ACCESS DEVICES IN HIS
POSSESSION;

(C) IMPRISONMENT FOR NOT LESS THAN FOUR (4) YEARS AND NOT
MORE THAN SIX (6) YEARS AND A_ FINE OF TWICE THE VALUE OF
THE FRAUDULENTLY OBTAINED CREDIT, WITHOUT PREJUDICE TO
THE CIVIL LIABILITY OF THE OFFENDER, IN THE CASE OF AN
OFFENSE INVOLVING FRAUDULENT USE OF A CREDIT CARD:

(D) IMPRISONMENT FOR NOT LESS THAN SIX (6) YEARS AND NOT
MORE THAN TEN (10) YEARS, AND A FINE OF FIVE HUNDRED
THOUSAND PESOS (500,000.00) OR TWICE THE VALUE OBTAINED BY
THE OFFENDER, WHICHEVER IS HIGHER, WITHOUT PREJUDICE TO
THE CIVIL LIABILITY OF THE OFFENDER, IN THE CASE OF AN
OFFENSE UNDER SECTION 9 (B)-(E), (G)-(P), AND (R), WHICH DOES NOT
OCCUR AFTER A CONVICTION FOR ANOTHER OFFENSE UNDER
SECTION 9;

(E) IMPRISONMENT FOR NOT LESS THAN TEN (10) YEARS AND NOT
MORE THAN TWELVE (12) YEARS, AND A FINE OF FIVE HUNDRED


THOUSAND PESOS (500,000.00) OR TWICE THE VALUE OBTAINED BY
THE OFFENDER, WHICHEVER IS HIGHER, WITHOUT PREJUDICE TO
CIVIL LIABILITY OF THE OFFENDER, IN THE CASE OF AN OFFENSE
UNDER SECTION 9 (A), (F), AND (Q), WHICH DOES NOT OCCUR AFTER
A CONVICTION FOR ANOTHER OFFENSE UNDER SECTION 9;

(F) IMPRISONMENT FOR NOT LESS THAN TWELVE (12) YEARS AND
NOT MORE THAN TWENTY (20) YEARS, AND A FINE OF EIGHT
HUNDRED THOUSAND PESOS (P800,000.00) OR TWICE THE VALUE
OBTAINED BY THE OFFENDER, WHICHEVER IS HIGHER, WITHOUT
PREJUDICE TO CIVIL LIABILITY OF THE OFFENDER, IN THE CASE OF
ANY OFFENSE UNDER SECTION 9, WHICH OCCURS AFTER A
CONVICTION FOR ANOTHER OFFENSE UNDER SAID SUBSECTION, OR
AN ATTEMPT TO COMMIT THE SAME; AND

(G) THE PENALTY OF LIFE IMPRISONMENT AND A FINE OF NOT LESS
THAN ONE MILLION PESOS (P1,000,000.00) NOR MORE THAN FIVE
MILLION PESOS (P5,000,000.00) SHALL BE IMPOSED IF THE OFFENSE
CONSTITUTES ECONOMIC SABOTAGE AS DEFINED HEREIN.

SECTION 5. CRIMES INVOLVING ECONOMIC SABOTAGE. — THE
FOLLOWING SHALL BE CONSIDERED AS AN OFFENSE INVOLVING
ECONOMIC SABOTAGE:

(A) IF ANY OF THE PROHIBITED ACTS IN SECTION 9 INVOLVE
HACKING OF A BANK SYSTEM; AND
(B) IF THE SKIMMING AFFECTED FIFTY (50) OR MORE ATM CARDS.

SECTION 6. ALIENS, NON RESIDENT FILIPINOS AND OFFENDERS
WITH ATTEMPT OR CAPACITY TO ABSCOND. — ALIENS, NON RESIDENT
FILIPINOS OR FILIPINO OFFENDERS WHO HAVE THE CAPACITY TO
ABSCOND OR HAD ATTEMPTED TO ABSCOND SHALL NOT BE
ALLOWED TO POST BAIL.

SECTION 7. Separability clause. — If any separable provision of this Act be
declared unconstitutional, the remaining provisions shall continue to be in force.

SECTION 8. Repealing clause. ~ Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary
to, or inconsistent with, the provisions of this Act is hereby repealed, modified or
amended accordingly.

SECTION 9. Effectivity clause. — This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved,