FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to provide a comprehensive policy framework that will ensure 
protections against computer-related fraudulent activities. 
The rapid developments in the information and telecommunications technology 
have revolutionized our daily lifestyle. Computers have evolved into a versatile 
instrument in modern society. According to a case study conducted by the International 
Telecommunication Union (ITU), the lead agency of the United Nations in information 
and communication technologies (ICT), personal computer (PC) penetration rate in the 
Philippines is estimated at 3.5 percent per 100 population in 2003, which increased to 4.5 
per 100 population in the succeeding year. The country ranked fifth in the ASEAN 
region behind Singapore, Malaysia, Brunei and Thailand. 
Networks of computers have become essential in maintaining and operating vital 
infrastructures. The use of computers in accessing the internet enabled linkages among 
individuals and organizations in doing business. The ITU estimates that in 2004, there 
were 4.4 million internet users representing 5.32 users per 100 population in the 
Philippines. The 2002 Survey of Information and Communication Technology of 
Philippine Business and Industry by the National Statistics Office (NSO) reveals that as 
of 2001, the portion of ICT users, aside from ICT industries, are highest in wholesale 
and retail trade (96.6 %), ICT education (93.7 %) and ICT manufacturing (88.6 %). With 
computers as portals, transaction and exchange of goods such as online shopping, and 
services such as online banking, have been facilitated more efficiently. 
With the increasing reliance on ICTs for transacting business, new forms of 
criminal activities, such as unauthorized acquisition of vital and/or confidential 
information by third parties seeking to profit or benefit from the ,utilization of such 
information, have emerged. To a certain extent, laws such as the e-commerce law, 
This bill addresses the need to provide a policy framework clearly defining the 
coverage of computer-related fraudulent activities and imposing penalties for the same 
to protect computer owners, cyber users, and the consuming public in general. 
In view of the foregoing, the urgent passage of his bill is sought. 
--T 
LORE 
EGARDA 
Senator 


-- & 26 i> 
I+, :!, ' ' 
FOURTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPHPINES 
) 
First Regular Session 
) 
S E N A T E  
S.B. No.=? 
7 
Introduced by Senator Loren Legarda 
AN ACT 
PROVIDING PROTECTION AGAINST COMPUTER FRAUD AND ABUSES AND 
THEREFOR AND OTHER PURPOSE 
OTHER CYBER-RELATED FRAUDULENT ACTIVITIES, PROVIDING PENALTIES 
Be if enacted by the Senate and House of Repvesentatives 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 2007". 
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, the government shall exert efforts to provide 
protection against all forms of computer fraud and abuses and cyber-related fraudulent 
activities committed against vital government and private financial institutions. 
SEC. 3. Punishable Acts -The following acts/offences are punishable under this Act. 
3.1. 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 unlawful economic gain for himself or 
for another person; 
3.2. Computer Forgery - The input, alternation, 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 word 
constitute the offense of forgery if it had been committed with respect to traditional 
object of an offense; 
3.3. Damage to Computer data or Computer Programs - The erasure, alteration 
damaging, deterioration or suppression of computer programs without right; 
3.4. Computer Sabotage - The input, alteration or suppression of computer data 
or computer programs, or interference with computer system, with the intent L-o hinder 
the functioning of a computer or of a telecommunication system; 


3.5. Unauthorized Access - The access without right to a computer system or 
network by infringing security measures; 
3.6. Unauthorized Interception - The interception, made without right and by 
technical means, of communications to, from and within a computer system or network. 
3.7. 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 relation, or may 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. international access a computer without authopization or exceed 
authorized access, and thereby obtains information contained in a 
financial record of a financial institution, or of card issuer or contained 
in a file of a consumer reporting agency on a consumer; 
c. international 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 Government of the Philippines, or in the case a 
computer not exclusively for such use , it is used or for the 
Government of the Philippines or, in the case of a computer not 
exclusively for such conduct affect thee use of the Government’s 
operation such a computer; 
d. knowingly with intent to defraud, accesses a vital government or 
private financial institution or agencies as indicated in the IRP 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 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 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 purpose of this above-mentioned enumeration of offenses, the following 
terms shall be defined as follows: 
a. computer 
shall 
refer 
to 
an electronic, 
magnetic, 
optical, 
electromechanical, or other high speed data processing devise 
performing logical, arithmetic, or storage functions, and includes any 
data storage facility or communications facility directly any data 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; 
b. National government computer shall refer to a computer - 
1. exclusively for the use of a government and private financial 
institutions operating under Philippines laws, or, in the case of a 
computer not exclusively for such use, by a financial institution or 
nay of the agencies 
of the government and the conduct 
constituting the offense the use of the financial institution's 
operation or the Government operation of computer; or 
2. which is one of the or more computers used in committing the 
offense, not all which are located in the same palace /areas. 
SEC. 4. Penal provision - Any person who violates any provision of this Act 
shall be punishable with imprisonment for not less than eight years nor more than 
twenty (20) years and a fine of one hundred thousand pesos (Php100,000.00) or equal in 
amount to the damage involved in the violation, whichever is applicable:' Provided, 
That if the person violating any provision of this Act is a juridical person, the penalty 
herein provided shall be imposed on its president or secretary and/or member 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 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 penalty prescribed in the preceding paragraph, be 
dismissed 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 offense under this section, particular 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 Justice, Finance, Science and 
Technology 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 provision of this Act is held invalid, the 
other provisions of this Act shall remain in full force and effect. 
SEC. 9. Repealing Clause - All laws, decrees, orders, rules and regulation, or 
portions thereof inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 10. Effectivity - This Act shall take effect fifteen (15) days after complete 
publication in the Official Gazette or in at least two (2) newspaper of general 
publication, whichever comes earlier. 
Approved,