Republic of the Pinlippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL NO. 8023

introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

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

This measure seeks to include economic sabotage, in relation to phishing and other
forms of fraudulent scheme, as punishable acts under RA 10175 or the Cybercrime
Prevention Act. and provide penalties for the commission of the same

Phishing is a social engineering scheme which obtains or attempts to obtain
personal, sensitive financial information and electronic credentials by disguising as a
trustworthy entity to illegally access a victim's online account for financial gain.

In 2019. around 217,600 phishing incidents were reported, with NCR recording the
highest of approximately 58,200 victims. followed by Regions 3 and 4-A1. However
National Bureau of Investigation NBI-Cyber Crimes Division (NBI-CCD) Senior Agent
Francis Sefora said that reports of phishing cases to the agency has increased by
more than 200% beginning March when the lockdown was implemented

Phishing is the top cybercrime being committed in the country during the pandemic.
followed by online selling scams and the proliferation of misinformation that cause
panic among the public. The increase of crimes committed in cyberspace was
expected considering that direct personal interactions are reduced

Through this bill, steps are taken to ensure that technology Is not exploited to
perpetuate crimes and put Filipino consumers at a disadvantage

In view of the foregoing, the immediate passage of this bill is most earnestly sought

for
J /L_y
LUIS RAYMUND. “LRAY” F. VILLAFUERTE, JR.
H



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO, 8023

introduced by HON. LUIS RAYMUND “LRAY" F. VILLAFUERTE, JR.
——————_—

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 assembied

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 i es 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 expioitation 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
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



Sec,

Sec.

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

XXX

(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.

XXX"
3. Section 4 (b) of the same Act is hereby amended to read as follows
"Section 4. Cybercrime Offenses. — Th

me Off The following acts constitute the offense of
cybercrime punishable under this Act

XXX
(b) Computer-related Offenses
XXX

(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."

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 prison mayor or a fine of at least two hunared thousand pesos



(PhP200,000.00) up to a maximum amount commensurate to the damage
or both

Any person found guilty of the punishable act under Section 4(a)(5) shall be
punished with imprisonment of prison 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 (PhP500,000.00) 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 (PI/000/000.00) BUT NOT MORE THAN FIVE MILLION

PESOS (P§,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 repeaied
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.

Approved,