New law penalizes bank hackers with life imprisonment

President Rodrigo Duterte has signed a law declaring the hacking of bank systems as a form of economic sabotage which is punishable by life imprisonment and a fine ranging from P1 million to P5 million.

Signed on August 28, Republic Act 11449 considers as economic sabotage the hacking of a bank’s system, skimming 50 or more payment cards and the prohibited act affecting 50 or more online banking accounts, credit cards, payment cards and debit cards.

The new law amended the 21-year old RA 8484 or the Access Devices Regulation Act.

Imprisonment of 12 to 20 years and a fine not less than P500,000 will be meted against anyone who is in possession of 10 or more counterfeit access devices and was able to access at least one account or had gained credit by the fraudulent use of such device.

In the case of an offender who is found to have in possession of 10 or more counterfeit access devices or similar gadgets and was not proven to have accessed any account or have gained any credit, the penalty will be six to 12 years in jail and a fine of P300,000 or twice the equivalent of the aggregate amount of all affected or exposed bank accounts, whichever is higher.

Fraudulent use of a credit card will be punishable with imprisonment of four to six years and a fine of twice the value of the fraudulently obtained credit.

Monetary penalty amounting to P800,000 and jail term of 12 to 20 years will be meted against those who violated Section 9 of RA 8484 after a conviction for another offense under the same section or an attempt to commit the same.

In considering a cardholder to have used his credit card with intent to defraud, the outstanding and unpaid balance past due for at least 90 days will now be P200,000 instead of P10,000.

The new law requires banks, other financial institutions and partner merchants to submit real-time reports of access device fraud incidents to the National Bureau of Investigation (NBI) and the Anti-Cybercrime Group of the Philippine National Police (PNP).

The report should contain a narration about the fraud committed and an identification of the perpetrator, if feasible.

The new measure also said the report will constitute the complaint necessary for the NBI or the PNP Anti-Cybercrime Group to pursue further investigation and prosecution of the fraud.

Malacañang released a copy of the new law on Wednesday. — RSJ, GMA News