REPUBLIC OF THE PHILIPPINES 
FIFTEENTH CONGRESS 
) 
) 
) 
First Regular Session 
SENATE 
Senate Bill No. 1081 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
"I" 
1"1 
" ') f, .,. 
J 
.... ,l~ ""'() 
i 
{f, _6~ 
This bill seeks to prevent and penalize computer fraud, abuses and other 
cyber related fraudulent activities and creating for the purpose Cyber-Crime 
Investigation and Coordinating Center (CICC) which shall investigate, coordinate, 
collate and synergize efforts of all law enforcement agencies in combating cyber 
crimes, 
Advancements in information technology (IT) can be characterized as a 
double-edged sword. On one hand, advanced IT enhances reliability and 
promotes efficiency in facilitating the exchange and delivery of information. On 
the other hand, the value of high technology is vulnerable to exploitation and 
abuse. For one, confidential stored data can be readily accessed, intercepted 
and corrupted without permission or authority. 
According to Time Magazine, the "Love Bug" virus which originated from 
the Philippines destroyed $10 Billion worth of data files worldwide. Cyberspace 
user became wary of receiving information from the Philippines through the 
Internet for fear of computer viruses. 
Although the recently approved B-Commerce Law provides penalties or 
sanctions on computer related crimes, it generally refers to all acts inimical to the 
use of computers and application of information technologies such as computer 
hacking. The proposed Anti-Cyber Crime Law complements the B-Commerce 
Law as it further specifies cyber offenses and their corresponding penalties. 
A stronger and more specific anti-cyber crime law is expected to deter 
computer users from indulging into illegal acts. Moreover, the law itself will send 
a signal to the International community that the country does not tolerate cyber 
crimes. 
In view of the foregoing, immediate approval of this bill is highly 
recommended. 


1 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
SENATE 
S.N010Bj 
Introduced by Senator Manny Villar 
c r, ", ',' 
10 
JUL-8 pt,:A4, 
AN ACT PREVENTING AND' PENALIZING COMPUTER FRAUD ABUSES 
AND OTHER CYBER-RELATED FRAUDULENT ACTIVITIES AND CREATING 
FOR 
THE 
PURPOSE 
THE 
CYBER 
CRIME 
INVESTIGATION 
AND 
COORDINATING CENTER PRESCRIBING ITS POWERS AND FUNCTIONS, 
AND APPROPRIATING FUNDS 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 Anti-Cyber Crime Act of 
2010. 
SEC.2. Objective.-It is the objective of this Act to protect and safeguard 
the integrity of computers, computer systems, computer networks, computer 
servers, database, and the information and data stored therein from computer 
users who resorted to computer fraud, abuses and other cyber-related fraudulent 
activities, by providing penal sanctions to the perpetrators and creating a 
coordinating body which shall coordinate, collate and synergize efforts of all law 
enforcement agencies in combating cyber crimes. 
SEC.3. Definition of Terms.- As used in this Act, the following terms shall 
mean: 
(a) Access-the interception, instruction, communication with, storing data in 
retrieving data from, or otherwise making use of any resources of a 
computer, computer system, computer network, or database 
(b) Computer-any device or apparatus singly or interconnected which, by 
electronic, electro-mechanical, optical and/or magnetic impulse, or other 
means with the same function, can receive, record, transmit, store, 
process, correlate, analy~e, projects, retrieve and/or produce information, 
data, text, graphics, figures, voice, video, symbols or other modes of 
expression or perform anyone or more of these functions; 
(c) Computer Network-the interconnection of two (2) or more computers 
through the use of a satellite, microwave, line or other communication 
medium; 
(d) Computer Program-an ordered set of instructions or statements and 
related data that, when automatically executed in actual form in a 
computer system, causes it to perform specified functions; 


(e) Computer software-a set of computer programs, procedures, and 
associated documentation concerned with the operation of a computer 
system; 
(f) Computer system-a set of related, connected, or unconnected computer 
equipment, devices and software; 
(g) Computer virus- a computer program copied to or installed on a computer, 
computer network, computer program, computer software or computer 
system without the informed consent of the owner of the computer, 
computer network, computer program, computer software, or computer 
system that may replicate itself and that causes unauthorized activities 
within or by the computer, computer network, computer program, 
computer software, or computer system; 
(h) Cyber space-the internet or the online or digital world in general; 
(i) Database-a representation of information, knowledge, facts, concepts, or 
instructions which are .being prepared or processed or have been 
prepared or processed in a formalized manner and which are intended for 
use in a computer, computer system, computer server, or database, which 
the accessor is not entitled to obtain or alter; 
(1) Any institution whose deposits are insured by the Philippine Deposit 
Insurance Corporation; 
(2) The Bangko Sentral ng Pilipinas; 
(3) A credit information or rating agency; 
, 
(4) Brokers or dealers in securities registered as such with the 
Securities and Exchange Commission; 
(5) Mutual fund mana~ers and the like; 
(6) A branch or agency of a foreign bank; 
(7) The Social Security System; 
(8) The Government Service Insurance System; and 
(9) Investment houses and pre-need entities. 
U) Financial institution 
(k) Financial record-any information derived from any record held by a 
financial institution pertaining to a customer's relationship with that 
financial institution. 
(I) Government or Government entity- any agency of the Government of the 
Republic of the Philippines, or any of its agencies or instrumentalities, 
including local government units and government owned or controlled 
corporations; any foreign country; and any state, province, municipality, or 
2 


other political subdivision, agency, or instrumentality of any foreign 
country; and 
(m)Protected computer-refers to a computer which is: 
(1) Used exclusively by a financial institution, the government, or in the 
case of a computer not exclusively used for such use, is used by (i) 
or for a financial institution; (ii) or a government; and any person, 
natural or juridical" and the conduct constituting the offense affects 
the use by, or for, the financial institution, government, or person; or 
(2) Used in domestic or foreign commerce or communications; 
(n) Services-computer time, data processing, storage functions and other 
similar services. 
SECA. Cyber-Crime Investigation and Coordinating Center.- There is 
hereby created, thirty (30) days from the effectivity of this Act, a Cyber-Crime 
Investigation and Coordinating Center, hereinafter referred to as CICC, under the 
control and supervision of the Office of the President principally to combat cyber-
related fraudulent activities and to investigate, coordinate, collate and synergize 
efforts of aI/law enforcement agencies in combating cyber crimes. 
SEC.5. Composition.-The CICC shall be headed by the Secretary of the 
Transportation and Communications as Chairman; with the Director of the 
National bureau of Investigation as Vice-Chairman; Director-General of the 
Philippine National Police; Chief of the National Prosecution Service; and Head 
of the National Computer Centers as members. 
The CICC shall be manned by a Secretariat headed by an Executive 
Director to be appointed by the' Chairman. The Executive Director shall posses 
adequate training and experience in the field of computer technology, or in 
information and communication system, or related fields. He shall be assisted by 
a functional staff composed of Administrative of Logistics Division, Intelligence 
and Investigation Division, Plans and Operations Division, Prosecution and Legal 
Division and Instructional Cooperation Division. Selected personnel and 
representatives from the different participating agencies shall be assigned to the 
CICC. 
The Chairman may call upon any government agency to render 
assistance in the accomplishment of the CICC's mandated tasks and functions. 
SEC.6. Powers and Functions."-The CICC shall have the following powers and 
functions: 
a) 
To prepare and implement appropriate and effective measures to 
prevent and suppress computer fraud, abuses and other cyber-related 
fraudulent activities as provided in this Act; 
b) 
To conduct intelligence and counter-intelligence operations to identify 
person(s), private or· government-owned corporations, government 
officials and employees, cyber crime syndicates and their cohorts who 
are involved in cyber-related criminal activities; 
3 


c) 
To effect searches and seizures in accordance with law, and to cause or 
direct the immediate arrest, investigation and speedy prosecution of 
computers users indulging in cyber crimes; 
d) 
To refer the case(s) at hand, as the CICC may deem proper and 
necessary, to the Department of Justice, or any other appropriate law 
enforcement agencies for investigation or prosecution, as the case may 
be; 
e) 
To follow-up the progress of on-going investigation and prosecution of 
cases taken cognizance by the CICC; 
f) 
,To formulate and implement plans and programs for international 
cooperation on intelligence and investigations relative to cyber crimes 
and prevention; 
g) 
To coordinate and orchestrate the support and participation of the 
business 
sector, 
local 
government 
units 
and 
non-government 
organizations in the anti~cyber crime prevention program; 
h) 
To recommend the enactment of appropriate anti-cyber crime laws and 
issuances; and 
' 
i) 
To perform such other functions and duties necessary for the proper 
implementation of this Act 
SEC.7. Prohibited Activities.-It is hereby declared unlawful for any person, 
whether natural or juridical, public or private, to commit the following acts: 
a) 
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 property of another person; 
b) 
Computer Forgery-The input, alteration, erasure or suspension of 
computer data or computer programs, or other interference in the course 
of data processing, in a manner or under such conditions, as prescribed 
by national law, that would constitute the offense of forgery if it had been 
committed with respect to a traditional object of such offense; 
c) 
Damage to Computer Data or Computer Programs-The erasure, 
alteration, damaging, deterioration or suppression of computer data or 
computer programs without right or prior authorization; 
d) 
Computer Sabotage-The input, alteration, erasure or suppression of 
computer data or computer programs or interference with computer 
systems, with the intent to hinder the functioning of a computer or of a 
telecommunication system; 
e) 
Unauthorized Access-The access without authority or right to a computer 
system or network by infringing security measures; 
f) 
Unauthorized Interception-The interception made without authority or 
right and by technical means of communication to, from and within a 
computer system or network; 
4 


g) 
Knowingly accessing a'n computer without authorization or exceeding 
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 relations, or any restricted data, with the 
intent or reason to believe that such information so obtained is to be 
used to the injury of the country, or to the advantage of any foreign 
nation; 
h) 
Intentionally accessing a computer without authorization or exceeding 
authorized access, and thereby obtains information contained in a 
financial record of a financial institution, or of a card issuer or contained 
in a file of a consumer reporting agency on a consumer; 
i) 
Intentionally, without .authorization to access any computer of a 
department 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 of the government of the Philippines, or, in the case of a computer 
not exclusively for such conduct affects the use of the government's 
operation of such computer; 
j) 
Knowingly and with intent to defraud, accessing a vital government or 
private financial institution or agencies as indicated in the implementing 
rules and regulations (IRR) without authorization, or exceeds authorized 
access, and by means ,of such conduct furthers the intended fraud and 
obtain anything of value, unless the object of the fraud and the thing 
obtained consist only of the use of the computer; 
k) 
Internationally accessing 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 losses to o,ne or destroys property of value; 
2) modifies or impairs, or potentially modifies or impairs the medical 
examination, medical diagnosis, medical treatment, or medical care 
of one or more individuals; 
I) 
Knowingly and with intent to defraud traffics in any person or similar 
information through \Yhich a computer may be accessed without 
authorization, if such trafficking affects inter-country or foreign trade or 
such computer is sued by the government of the Philippines in its 
transactions; and 
m) 
Introduces immoral doctrines, obscene publications and exhibitions, and 
indecent shows in cyberspace. 
SEC.a. Compensation.-The Chairman and the members of the CICC shall 
not receive additional compensation for the services rendered thereto: Provided, 
however, That they shall be entitled to reimbursement for the actual expenses 
they have incurred in the performance of their duties and in the attendance of 
meetings as members of the CICC. 
SEC.9. Penalties.-Any person or entity found guilty of any of the prohibited 
activities under Section 7 hereof shall be punished with imprisonment of not less 
5 


than (10) years nor more than twenty (20) years or suffer the penalty of a fine of 
not less than Five hundred thousand pesos (P500,000.00) nor more than One 
million pesos (1,000,000.00) or twice the value of the property involved in the 
prohibited act, whichever is greater, or both imprisonment and fine, at the 
discretion of the court. 
Any person or entity who introduces immoral doctrines, obscene 
publications and exhibitions, and indecent shows in cyberspace as provided 
under Sec.7(m), shall, upon conviction, be punished with imprisonment of not 
less than four(4) year but not more than six(6) years or a fine of not less than 
Fifty thousand pesos (P50,000,00) nor more than One hundred thousand pesos 
(P100,000.00) or both imprisonment and fine, at the discretion of the court. 
If the offender is a corporation, partnership, association or entity, the 
penalty shall be imposed upo'n the officers of the corporation, partnership, 
association or entity responsible for the violation. 
SEC.1 O.Appropriation.-The 
amount 
necessary 
for 
the 
effective 
implementation of this Act shall be taken out of any funds of the National 
Treasury not otherwise approprjated for the initial organization and operation of 
the CICC. Thereafter, such amounts as may be necessary to finance its 
operations and maintenance shall be included in the annual General 
Appropriations Act. 
SEC.11.lmplementing 
Rules 
and 
Regulations.-The 
Secretary 
of 
Transportation and Communications shall issue the necessary rules and 
regulations to carry out the objectives of this Act. 
SEC.12. Separability Clause.-In the event that any part of this Act is 
declared unconstitutional, the other parts not so declared shall remain valid and 
effective. 
SEC.13.Repealing Clause.-Any provision of law, decree, executive order, 
rule or regulation which are in conflict or inconsistent with the provisions of this 
Act are hereby repealed or modified accordingly. 
Sec.14.Efffectivity.- This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved, 
6