It also dawned on me the dangers of using a credit card. Not that safe and secure after all. Imagine, all it entailed was copying the card’s information.

When I travel abroad, I make sure I have my credit cards. Much safer to have them while shopping, instead of bringing cash. And so, I once thought.

One time when I got back from vacation abroad, an officer of the bank that issued the credit card I used during that trip, called to ask where I was. I answered Manila. He wanted to confirm that I was not making any transaction, over the counter or otherwise, abroad. Apparently, my card was being swiped for a number of transactions where I spent my vacation, as we spoke. I was so surprised it happened. Usually I just read about them on the news. So, the officer, with my permission, immediately proceeded to block my card and advised me to file a dispute report.

I then asked him how that unauthorized act was perpetrated considering that my card was physically with me in the Philippines. He explained that it is what is called skimming. When I used my credit card abroad, someone was able to “duplicate” it by copying the information it contained. That duplicate card was used to purchase items.

I then realized how easy and simple it was for these fraudsters to do it. It also dawned on me the dangers of using a credit card. Not that safe and secure after all. Imagine, all it entailed was copying the card’s information. And that translated to the ability to purchase items as if I was physically present at the store. This took place several years ago. And yet, it is still very real and prevalent now. From what I heard, credit card institutions lose not only millions, but billions to these illegal transactions.

To address this ever-growing menace, our Congress saw the need to amend Republic Act 8484 — the Access Devices Regulation Act of 1998. Republic Act 11449, approved on 29 August 2019, provides additional prohibitions and increases penalties for violations of Republic Act 8484. Republic Act 8484 regulates the use of access devices such as credit cards and the penalties imposed for their misuse or unlawful use.

Republic Act 11449 introduces and integrates into Republic Act 8484 several other acts including hacking and skimming. “Hacking refers to the unauthorized access into or interference in a computer system/server or information and communication system; or any access in order to corrupt, alter, or destroy using a computer or other similar information or communication devices, without the knowledge and consent of the owner of the computer system or information and communications system, including the introduction of computer viruses and the like, resulting in the corruption, destruction, alteration, theft or loss of electronic data messages or electronic documents… Card skimming refers to a type of fraud which involves illegal copying of information from the magnetic stripe of a payment card to gain access to customer accounts (Section 3, Republic Act No. 11449).”

And what is most significant about this new law is the increase in and additional penalties it included in Republic Act 8484. In fact, it introduces economic sabotage which is punishable by life imprisonment, in addition to a fine in the millions. “Economic sabotage is deemed committed when the prohibited act involves the hacking of a bank’s system, skimming affecting 50 or more payment cards or affecting 50 or more online banking accounts, credit cards, payment cards and debit cards (Section 4, Republic Act No. 11449).” If you look at Republic Act No. 8484, prior to these revisions, penalties and fines were much lighter.

As the Internet has grown and become more sophisticated; sad to say, people with criminal minds have used this as an avenue to perpetrate their crimes. Indeed, thieves have levelled up.

Before, to steal money, robbers had to physically enter the bank and break the vault. Nowadays, it only takes a mere push of a button to transfer funds from one account to another. The perpetrator need not be in or anywhere near the premises. He may be in a remote place which no one knows, thousands of miles away from the bank. All he needs is to hack into its system.

Through skimming on the other hand, a thief can actually purchase anything, through the use, unauthorized at that, of the card of a legitimate cardholder to the latter’s grave prejudice and damage.

With a problem this severe, it is certainly high time for Congress to have this new law. It is not only to address this ever-growing present mess. It is in the hope that with such penalties, these acts committed today will totally be obliterated in the future.