Republic of the Philippines
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SIXTEENTH CONGRESS.
First Regular Session

House Bill No,__ 1513

INTRODUCED BY HON. MARCELINO “MARCY” R, TEOD!

EXPLANATORY NOTE

The occurrence of credit card fraud in the country is steadily increasing, and banks
incur huge losses and suffer stunted credit card sales, ultimately threatening the survival
of the credit card industry, including the negative repercussions in the domestic economy.

Authorities had declared in the past that credit card fraud is a form of economic
sabotage as it creates a bad image for the Philippines in the global market.

Further, the Credit Card Association of the Philippines (CCAP) had been asking the
government to give more teeth to the law against fraudsters using illegally obtained
information from credit cards, obtained mostly through store or restaurant personnel.

This bill seeks to put a stop to credit card frauds, and to protect banking and financial
institutions by providing remedies for problems arising from said acts.

Hence, its immediate approval is hereby earnestly sought.

Ya
MARCELINO “MARCY” R. TEODORO.

Representative
4° District, Marikina City


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

SIXTEENTH CONGRESS
First Regular Sessio,
1513

House Bill No.

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO.

AN ACT
PENALIZING CREDIT CARD FRAUD AND PROVIDING PENALTIES THEREFOR

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

SECTION 1. Title. - This Act shall be known as the “Credit Card Fraud Act.”
SECTION 2. Definition of Terms. — As used in this Act, the term:

(A) “Access device" means any card, plate, code, account number, electronic
serial number, personal identification number, or other telecommunication
services, 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;

(B) “Counterfeit access device” means any access device that is counterfeit,
fictitious, altered, or forges, or an identifiable component of an access device or
a counterfeit access device;

(C) “Unauthorized access device” means any access device that is lost, stolen,
expired, revoked, canceled, or obtained with intent to defraud;

(D) “Tariff’ means transfer, or otherwise dispose of, to another, or obtain control
of with intent to transfer or dispose of;

(E) “Device making equipment" means any equipment, mechanism, or
impression designed or primarily used for making an access device or a
counterfeit access device;

(F) “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

(G) “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 device. —
The following acts shall, if the offense affects interstate or foreign commerce, be punished as
provided in Section 4 of this Act:

(A) Knowingly and with intent to defraud produces, uses or traffics in one or more
counterfeit access devices;

(8) 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 P2,000.00 or more during that period;

(C) Knowingly, and with intent to defraud possesses fifteen or more devices which are
counterfeit or unauthorized access devices;

(D) Knowingly, and with intent to defraud uses, produces, traffics, has control or


custody of, or possesses a telecommunications instrument that has been modified
or altered to obtain unauthorized use of telecommunications devices;

(E) Knowingly, and with intent to defraud uses, produces, traffics n, has control or
custody of, or possesses a scanning receivers or hardware or software used for
altering or modifying telecommunications instruments to obtain unauthorized
access to telecommunications devices;

(F) Knowingly and with intent to defraud uses, produces, traffics in, has control or
custody of, of possesses a scanning receiver or hardware or software used for
altering or modifying telecommunications instruments to obtain unauthorized
access to telecommunications devices;

(G) Knowingly and with intent to defraud effects transactions, 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 P2,000.00;

(H) Without the authorization of the issuer of the access device, knowingly and with
intent to defraud solicits a person for the purpose of

(1) Offering an access device; or
(2) Selling information regarding or an application to obtain an access device;

or
Without the authorization of the credit card system 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;

(l

Section 4. Penalties. - The punishment for an offense under Section 3 of this Act is —

(A) A fine of Ten Thousand Pesos (P10,000.00) or twice the value obtained by the
offense, whichever is greater, or imprisonment of prison mayor in its minimum and
medium period, or both, in the case of an affair under Section 3 (B), (C), (G), (H),
or (9) of this section which does not occur after a conviction for another offense
under this Act.

(B) A fine of Ten Thousand Pesos (P10,000.00) or twice the value obtained by the
offense, whichever is greater, or imprisonment of prision mayor in its medium and
maximum periods, or both, in the case of an affair under Section 3 (B), (C ), (G),
(H) or (9) of this section which does not occur after a conviction for another offense
under either such section; and

(C) A fine of Ten Thousand Pesos (P10,000.00) or twice the value obtained by the
offense, 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. Authority to Investigate. - The National Bureau of Investigation (NBI) shell, 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 existing.

SECTION 7. Repealing Clause. - Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary ro or inconsistent with the
provision of this Act is hereby repealed, modified or amended accordingly.

SECTION 8. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,