By Hannah Torregoza

The Senate on Monday approved on third and final reading a measure that seeks to punish hackers of the banking systems with life imprisonment and a fine of up to P5 million.

Voting 20-0-0, the Senate approved House Bill No. 6710 that seeks to declare the hacking of bank systems as a form of economic sabotage. The measure amends Republic Act 8484, or the “Access Devices Regulation Act of 1998.

Senator Francis “Chiz” Escudero, chair of the Senate Committee on Banks, Financial Institutions, and Currencies, said the passage of the measure into law would help protect bank consumers against scams and financial fraud.

“The rapid development of information technology and the economic impact of financial fraud and crimes committed through the use of electronic devices and gadgets necessitate the need to provide more teeth to RA 8484,” Escudero said.

Aside from harsher penalties, the scope of the law has been expanded, to include automated teller machine (ATM) fraud through skimming, hacking of the banking system, counterfeiting of credit or debit card.

Once passed into law, the mere possession of any type of skimming devices or even attempts to access an application or online banking account – regardless whether or not it will result in monetary loss to the account holder – would now be punishable with imprisonment.

Escudero’s committee, together with the Senate Committee on Trade, Commerce, and Entrepreneurship chaired by Sen. Aquilino “Koko” Pimentel III, also recommended the approval without amendments of House Bill No. 6710 which provides for additional prohibitions on the use of access devices in commercial transactions.

Under the definition of the law, access devices include credit or debit card, ATMs or 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 to obtain money, good, services or any other thing of value or to initiate a transfer of funds, other than a transfer originated solely by paper instrument.

The measure further validates that the hacking of a bank’s system, skimming of 50 or more ATM cards or online banking accounts, credit cards and debit cards already constitute economic sabotage, a non-bailable offense carrying penalties of life imprisonment and fines ranging from P1-million to P5-million.

Under the bill, any person found to be in possession of 10 or more card skimming device and was able to access at least one account can be meted with a 12 to 20 years of imprisonment and a fine not less than P500,000.

On the other hand, a penalty of six to 12 year jail term and a fine of P300,000 await any offender who is found to be in possession of 10 or more counterfeit access devices or similar gadgets but was not proven to have accessed any account.

Meanwhile, those found to be involved in the fraudulent use of a credit card would be punished with a four to six year imprisonment and a fine of twice the value of the fraudulently obtained credit.

Also under the bill, a 10 to 12 years imprisonment and a fine of P500,000 would be imposed for offenses that involve the use of one or more counterfeit devices or possession of device-making or altering equipment. Aside from this, a monetary penalty amounting to P800,000 and jail term of 12 to 20 years would be meted against those who committed any offense under Section 9 of RA 8484.

In the case of a cardholder who used his credit card with intent to defraud, the outstanding and unpaid balance past due for at least 90 days would now be P200,000, a far cry from the existing provision which pegged the amount to only P10,000.

The bill, likewise, grants additional powers to the National Bureau of Investigation (NBI) and the Anti-Cybercrime Group of the Philippine National Police (PNP) to empower these agencies to pursue further investigation and prosecution of frauds.