FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. ___ 
1044 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
With the meteoric growth of credit card usage in the Philippines, the possibility of 
fraud through the use of such cards has also expanded. Thus, there is now a need to 
enact a law that punishes credit card fraud. 
This bill seeks to deter the commission of such acts and to protect banking and 
financial institutions, by providing remedies for problems arising from the commission of 
such deleterious acts. 
MANNYVI LAR 9 


1 
2 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
Senate Bill No. - 
1044 
INTRODUCED BY HON. MANNY VILLAR 
AN ACT PENALIZING CREDIT CARD FRAUD AND PROVIDING PENALTIES 
THEREFOR 
Be it enacted by the Senate and the House of Representatives in Congress assembled: 
SECTION 1. Title. This Act shall be known as the "Credit Card Fraud Act." 
SECTION 2. Definition. As used in this Act. 
(1) The term "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. Alone or in conjunction with another access device, to obtain money, 
goods, services, or any other thing of value, or that can be used to initiate a transfer of 
funds (other than a transfer originated solely by paper instrument); 
(2) The term "Counterfeit Access Device" means any access device that is 
counterfeit, fictitious, altered, or forged, or an identifiable component of an access 
device or a counterfeit access device; 
(3) The term "Unauthorized access device" means any device that is lost, stolen, 
expired, revoked, cancelled, or obtained with intent to defraud; 
(4) The term "Produce" includes design, alter, authenticate, duplicate, or 
assemble; 
(5) The term "Traffic" means transfer, or otherwise dispose of, to another, or to 
obtain control of with intent to transfer or dispose of; 
(6) The term "Device-making equipment" means any equipment, mechanism, or 
impression designed or primarily used for making an access device or a counterfeit 
access device; 


5 
6 
I 
8 
9 
10 
I I  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
31 
(7) The term "Credit Card System Member" means a financial institution or other 
entity that is a member of a credit card system, including an entity, whether affiliated 
with or identical to the credit card issuer, that is the sole member of a credit card 
system; and 
(8) The term "Scanning Receiver" means a device or apparatus that can be used 
to intercept a wire or electronic communication. 
SECTION 3. Prohibited acts of fraud and related activity in connection with 
access devices. Whoever - 
(1) Knowingly and with intent to defraud produces, uses, or traffics in one or 
more counterfeit access devices; 
(2) Knowingly and with intent to defraud traffics in or uses one or more 
unauthorized access devices during any one year period, and by such conduct obtains 
anything of value aggregating P2,OOO.OO or more during that period; 
(3) Knowingly and with intent to defraud, possesses fifteen or more devices 
which are counterfeit or unauthorized access devices: 
(4) Knowingly and with intent to defraud, produces, traffics in, has control or 
custody of, or possesses device-making equipment; 
(5) Knowingly and with intent to defraud, uses, produces, traffics in, has control 
or custody of, or possesses a telecommunications device; 
(6) Knowingly and with intent to defraud, uses, produces, traffics in, has control 
or custody of, or possesses - 
(a) A scanning receiver; or 
(b) Hardware or software used for altering or modifying telecommunications 
instruments to obtain unauthorized access to telecommunications devices 
(7) Knowingly and with intent to defraud effects transaction, with one or more 
access devices issued to another person or persons, to receive payment or any other 
thing of value during any one year period the aggregate value of which is equal or 
greater than P2,OOO.OO; 
(8) Without the authorization of the issuer of the access device, knowingly and 
with intent to defraud solicits a person for the purpose of - 
(a) Offering an access device; or 
32 
(b) Selling information regarding or an application to obtain an access device; or 


5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
(9) Without the authorization of the credit card system member or its agent, 
knowingly and with intent to defraud causes or arranges for another person to present 
to the member or its agent, for payment, one or more evidences or records of 
transactions made by an access device; 
SECTION 4. Penalties. The punishment for an offense under section 3 of this 
Act is - 
(a) A fine of P10,OOO.OO or twice the value obtained by the offender, whichever is 
greater, or imprisonment of Prision Mayor in its minimum and medium periods, or both, 
in the case of an offense under section 3 (2), (3), (7), (8), or (9) of this section which 
does not occur after a conviction for another offense under either such section; 
(b) A fine of P10,OOO.OO or twice the value obtained by the offender, whichever is 
greater, or imprisonment of Prision Mayor in its minimum and medium periods, or both, 
in the case of an offense under section 3 (I), 
(4), (5), or (6) of this Act which does not 
occur after a conviction for another offense under either such section; and 
(c) A fine of P10,OOO.OO or twice the value obtained by the offender, whichever is 
greater, or imprisonment of Reclusion Temporal in its minimum and maximum periods 
or both, in the case of an offense under section 3 of this Act which occurs after a 
conviction for another offense under such section. 
SECTION 5. The National Bureau of Investigation (NBI) shall, in addition to any 
other agency having such authority, have the authority to investigate offenses under 
this Act. 
SECTION 6. Separability Clause. If any provision, or part hereof, is held invalid 
or unconstitutional, the remainder of the law or the provision not otherwise affected 
shall remain valid and subsisting. 
SECTION 7. 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 8. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved.