The Innovation of New Application Called EXTRACK in Digital

Monitoring and Control Application for Online Expenditures of

Citizens in Zamboanga City

Researchers:

Escribano, Nadezhda A.
Mañalac, Ericka Gae B.
Napiñas, Erika Kyle T.
Ople, Princess Mae B.
Sarita, Jared Jehu V.
Serrano, Ma. Natalie Dominic

In partial fulfillment of the requirement in SCITECS

Presented to

Ms. Queendel Vanee G. Garcia

SCITECS Teacher
 TABLE OF CONTENTS
CHAPTER I
INTRODUCTION 3
1.1 Background of the Study 3-4
1.2 Statement of the Problem 4-5
1.3 Objectives 5
1.4 Significance of the Study 5-7
1.5 Scope and Limitations 7-8

CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES 9
2.1 Expense Tracker 9-11
2.2 Impulsive Buying 11-13
2.3 Online Scams Experienced by Individuals 13-15
2.4 Technological Issues in Cyber World 16-21

CHAPTER III
METHODOLOGY 22
3.1 Research Design 22
3.2 Locale of the Study 22
3.3 Population and Sampling Design 23
3.4 Statistical Treatment for Sampling Design 23-24
3.5 Data Gathering Tool 24-25
3.6 Data Gathering Procedures 25
3.7 Statistical Treatment Applied for the Results 25
3.8 Step-by-step process on how the researchers came up
with the Innovation of EXTRACK Application 26-27
FEATURES OF THE INNOVATION 27
Checklist Summary of Features 27-28
Explanation for the EXTRACK logo 29-30
APPENDICES 31-33
REFERENCE LIST 34-36

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 CHAPTER I

INTRODUCTION

1.1 Background of the Study

In today’s era of technology, numerous fast-paced advancements and

developments have dominated society and made huge contributions, such
as allowing people to discover new things at greater heights. These
individuals were also given the opportunity to view the world from a bigger
perspective which gave everyone the hope to create a better future. With
modern technology, the world as we know it today made huge
transformation and created milestones that will echo through the
succeeding generations. As technology is continuously improving and
expanding to new horizons, each person is subjected to live with it and use
it for entertainment, communication, and as a means of living.

Numerous technologies are gradually made for the convenience of

people, and it is a well-known fact that these people are already
accustomed to using the internet – one of the most famous and successful
inventions of all time. Inclined with the advancements of modern-day
technology comes the development of numerous budgeting applications,
ranging from mobile applications to computer software. Online expense
tracker applications can be used to help individuals correctly manage their
finances and be updated with their current undertakings regarding
monetary aspects.

Budgeting one’s financial resources is one of the essential duties of a

responsible spender. One of the main components of budgeting is to keep
track of the expenditures being done. By doing so, it allows the spender to
monitor the amounts being spent, their destination, and the account in
which the funds were used. Likewise, monitoring one’s expenditures allows

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proper allocation of financial resources and also grants the opportunity to
observe spending habits.

As executing daily tasks becomes more convenient with the aid of

modern technology, it is unfortunate that the same thing can also be said
when it comes to hacking and breaching security. Majority of banks in the
country also offer their services through electronic-banking, also known as
e-banking, or online banking to their clients. Such acts make it easier for
users to perform financial activities, such as paying bills, transfer funds,
withdraw and deposit money, and many more.

Many users have realized through the hard way that their usage of
e-banking might put their financial data at danger since the advent of
internet banking to the banking sector. As a result, both banks and users
have become concerned about security. (Alsayed and Bilgrami, 2017)

1.2 Statement of the Problem

This study aims to address common technological issues through the

development of EXTRACK, an expense-tracking application. Specifically, it
seeks to address the issues, namely phishing, fraud, and estafa cases that
frequently arise through online bank transactions through providing
countermeasures to reduce the chances of these incidents occuring by
answering the following questions:

1. What is the demographic profile of EXTRACK users/consumers?

2. Which among the following measures of EXTRACK provides the most

effective security measure?
a. Detailed Transaction Tracing
b. Two-Authentication Code
c. Periodical Updates on Users’ Finances
d. Automatic session-resets during screen inactivity

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 3. How efficient is EXTRACT towards addressing the consumer's needs
in terms of:
a. Customer assistance in budgeting finances
b. Monitoring accounts, expenses, and transactions
c. Setting expenditure limits
d. Recording account balances

1.3 Objectives

This study incorporates the following objectives:

1. Reduce the incidences of online phishing, fraud, estafa, and

other similar cases with EXTRACK through the following
methods:
a. Detailed Transaction Tracing
b. Two-Factor Authentication upon opening the application
c. Periodical Updates on Users’ Finances
d. Automatic session resets during screen-inactivity

2. Monitor and help manage users’ finances through the following

methods:
a. EXTRACK will be synchronized with mobile banking and
shopping applications set by the user
b. Set expenditure limits for specific accounts
c. Record users’ account balances

1.4 Significance of the Study

As the majority of both international and local banks also offer their
services through online and mobile platforms, there were many incidents
wherein security issues arose. Cyber attackers have devised a number of

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evasive strategies for stealing money from internet banking. The findings of
this study will be greatly beneficial to the following:

A. Bachelor of Science in Information Technology Students

The application will be beneficial to the students taking up

Bachelor of Science in Information Technology as this will enable
them to study the processing of information and other technological
aspects of the application, and compare it to existing applications.
This will then enable them to be more knowledgeable in their field of
study and apply it in their future inventions.

B. Bachelor of Science in Programming Students

The application is significant to those students who are

studying Bachelor of Science in Programming because they can study
how the application works, such as the programming of the
application and how the limitation and restriction works. These
features will help them connect their knowledge in their course and
relate it to real-life scenarios.

C. Netizens of Zamboanga City

The application will be beneficial to the netizens of Zamboanga

City specifically engaged in accessing online banking and other
means of online payments, as this will enable them to add their bank
accounts and e-wallets for monitoring and control. The application
will enable them to keep track of their account balances and
expenditures incurred. Also, this will allow the users to budget and
save a portion of their money as one of its characteristics is to notify
the users that they have reached their spending limit and lock a
third-party application in accessing their account. (e.g., Shopee,
Lazada, Shein, etc.)

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 D. Investors

The application is useful for the investors, for it is an innovation

that can help people control their financial engagement, hence,
providing them a significant amount of money that can be used in
investing to potential companies and businesses. Gaining knowledge
about the application will also be valuable to those potential investors
who would be interested in engaging in producing this application
and bringing it to the market and its target users.

E. Department of Trade and Industry (DTI)

The application is beneficial to the Department of Industry,

since it is engaged in online transactions such as ordering
merchandise in online shopping platforms. The information provided
by the application can help them produce statistical data regarding
international and domestic trading (e.g., how much was spent on
international shops vs. domestic shops).

F. Other Researchers

This application is a tool that can provide other researchers

additional ideas on their potential technological invention. This can
help them assess what other improvements they need to have and
enhance, and create a new invention different from this one.

1.5 Scope and Limitations

This study only focuses on providing the necessary countermeasures

for online phishing, fraud, and estafa through application–as such, it only
covers transactions, financial resources or funds, and accounts from online
or digital platforms, such as (1) Mobile or Online Bank Accounts, (2) Debit

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or Credit Cards registered in devices and online shops, and (3) Electronic
Wallets or e-wallets. EXTRACK does not involve transactions paid in hard
cash and physical money.

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 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter will discuss past studies undertaken by other

researchers as well as articles pertaining to the subject of the current
study. This chapter will examine expense trackers, the habit of
overspending and how to manage it, online financial scams that consumers
have encountered, and certain financial crimes or issues such as phishing,
fraud, and “estafa” commonly known as swindling.

2.1 Expense Tracker

An online expense tracker is used to manage one’s financial resources

or expenditures. It is a helpful way for people to keep track of their money
and how they can allocate it properly or even section it out to meet their
needs and lifestyle. A lot of expense trackers are created already to help
with this work, available on different platforms where you can download
them. Expense trackers are known to check one’s daily, weekly, monthly,
and yearly expenses. It keeps a record of the transactions that have
occurred especially on online platforms that require payments. “Expense
trackers are daily expense management systems designed to track
day-to-day expenses easily and efficiently. It helps the user to track the
daily expenses of unpaid and paid transactions through a computerized
system which eliminates the need for hardcopy output” (Uday, Pratap,
Singh, et al., 2021)

According to Chandini, Poojitha, Ranjith et al. (2019), “Income and

Expense Tracker will maintain data of daily, weekly, monthly, yearly
expenses, manages your expenses and earnings in a simple and intuitive
way…By using this, we can reduce the manual calculations for their

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expenses and keep the track of the expenditure”. So, in relation to that,
expense trackers are also focused on budgeting. There is a need to do
budgeting with the finances because people buy their needs and wants
with money, so there is an obligation to evenly distribute the resources
appropriately. As stated in their research, “Budgeting is an integral part of
society. Budget Tracking involves recording and analyzing the incomes and
expenses of a person or an organization over a particular period of time.
Today, since we are living in a hurry to get it done, many people are
looking forward to efficient ways to budget their time and money” (Bekaroo
and Sunhaloo, 2017).

In expense trackers, there is a need also to input personal details,

such as the user’s name, age, email, and password in order to gain access
to it and become the owner of the account. Only one account will be
available to every person in order to prevent any duplication of information
that might lead to any hassle and to further enhance the security of the
application when in use by the user. In one written article this is known as
a “single sign-on”, as mentioned by Teravainen (2019), “In a basic web
SSO service, an agent module on the application server retrieves the
specific authentication credentials for an individual user from a dedicated
SSO policy server, while authenticating the user against a user repository,
such as a Lightweight Directory Access Protocol (LDAP) directory. The
service authenticates the end-user for all the applications the user has
been given rights to and eliminates future password prompts for individual
applications during the same session.”

In one journal written by Kazi, Kherade et al. (2021), the researchers

disclosed that some expense trackers can help reduce overspending
because they include a limit to the amount the user can only use. They
prevent the user from spending unnecessary items or engaging in
transactions to make them cautious about their finances. Also in return, the
excess amount can be inserted into the user’s savings fund. This will add
up to their monetary worth. Expense tracker will help people to be

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responsible with their money and help alleviate any of their economic
problems.

In today’s society, the development of technological platforms paved

the way for online transactions to become possible, bringing convenience
to online users. The usage of Internet-based shopping, online
subscriptions, and banking have been increasingly popular lately among
individuals. However, despite the convenience it brought for online users,
the downside of constantly using this, became a reason for consumer's
tendency to overspend on unnecessary items or services which causes
problems in terms of managing financial expenses. For instance, the
purpose of online shopping nowadays is not only for satisfying one's basic
needs but instead being often used without rationally thinking if the
products are actually needed. This personal hobby transforms as a bad
behavior that consumers often neglect and are unaware of.

2.2 Impulsive Buying

Impulsive buying is defined as the act of immediate purchase of

a product without pre-shopping intention (Keenan, 2021). Consumers who
engage in an unplanned decision to purchase a product are referred to as
impulsive buyers. Impulsive buyers often buy products spontaneously
without any bit of hesitation. And because shopping has become
incorporated into people's daily lives, impulsive buying has become much
more widespread in today's society, making it more difficult for an
individual to control. On top of that, not only do they purchase unnecessary
items or services but the majority of these consumers frequently do not
pay much more attention to the possible outcomes that might occur as a
result of their action, especially for those consumers who are on a tight
budget.

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 CHARACTERISTICS OF IMPULSIVE BUYER

Accordingly to the article written by Mendenhall (2014), these three

are the main characteristics of an impulsive buyer:

1. The desire for pleasure

An impulsive buyer seeks pleasure from the products they have

purchased on the spur of the moment. They may have found enjoyment in
the items they purchased, but it also comes with a sense of guilt. Although
they felt guilty for losing self-control, they will always continue because of
the rewarding feeling they experienced from purchasing. Additionally, the
enjoyment that most impulsive buyers receive from businesses are possible
sales promotions, vouchers, low prices etc., which triggers consumer’s
impulsive purchases.

2. The need to impress others

Robert and Manolis (2012) come to the conclusion that consumers

purchase impulsively for the sole reason of impressing other people. This is
their means of showing their conformity to the trend, to their colleagues, or
perhaps to showcase their social status. To put it another way, the desire
for high social standing may increase desire for impulse purchases.

3. Lack of self-control

According to Fransen & Fennis (2014), “Resisting influence attempts

is a hard task that requires individuals to expend cognitive effort and
resources in order to regulate their behaviour“. The absence of self-control
is often associated with the compulsive behavior of an individual such as
Impulsive buying (Roberts & Manolis, 2012). Thus, this only means that it
depends on the hands of the consumer on how they will exercise

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self-control when it comes to purchasing an item without being tempted on
buying other products aside from what is needed.

2.3 Online Scams Experienced by Individuals

Lottery wins, hypnosis, suspension of online accounts, and online

romance are some of the scenarios that online fraudsters usually fabricate
in order to get their targets hyped-up, and then later on take the bait they
have set up in succeedingly committing fraud. Modern technology,
especially the internet, has rapidly increased its growth in the world and
has enabled individuals to meet ends and made the acquisition of
information more accessible and simple.

In November 2011, according to Gabriel Hudson Nkotagu in his

journal as an international student of Arkansas State University-Jonesboro,
the internet is important as this enabled teachers and students to gain
access to relevant information from full books to journals. In addition, the
internet plays an important role in the aspect of communication of both the
students and teachers. As these individuals are exposed to the use of the
internet, this could put them at many risks such as identity theft, fraud,
and exposure to malware, which is why the internet also made it easier for
online scammers to realize their intentions with their targets.

The fact that there are instances where students browse unrestricted
websites in a search for textbooks that would cost them lesser than those
offered or prescribed by their school poses a threat to these students of
being scammed. There are also many products that students browse on
these unrestricted websites that are not sold locally, and in despair of
wanting to have such products at a lower cost, they end up giving away
private information such as their credit card number. The same could also
apply to teachers who seek cheaper textbooks just to be able to discuss
their lessons with the guidance of the prescribed textbook of the school,

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and also other products they browse on unrestricted websites, as they
could also be possible victims of fraud. (Hache & Ryder, 2011).

Tom Pendergast, a blogger, shared last 2021 that his wife

experienced an email scam attempt. Accordingly, his wife is a striving artist
who just started out and is still looking for an audience for her artwork in
social media such as instagram. Out of nowhere, her wife received an email
from someone who would like to view her portfolio as the wife of the
potential buyer loves the artwork of Tom’s wife. The potential buyer praised
the artwork as he finds it impressive and intriguing and later on mentioned
that he would like to surprise his wife with these artworks for their
upcoming wedding anniversary.

“Greetings... I am Jamie from Houston, Texas. I have been on the lookout

for some artworks lately in regards to I and my wife's anniversary which is
just around the corner. I came across some of your works which I found
quite impressive and intriguing. I must admit you're doing quite an
impressive job. You are undoubtedly good at what you do.
With that being said, I would like to purchase some of your works as a
surprise gift to my wife in honor of our upcoming wedding anniversary. It
would be of help if you could send some pictures of your piece of works,
with their respective prices and sizes, which are ready for immediate (or
close to immediate) sales. My budget for this is within the price range of
$1500 to $3000.

I look forward to reading from you in a view to knowing more about your
pieces of inventory. As a matter of importance, I would also like to know if
you accept a check as a means of payment.

Regards,
Jamie W”

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 Not to mention the grammatical errors, the blogger was suspicious as
the potential seems to be in a hurry in purchasing the artwork of his wife.
Also, the potential buyer mentioned the use of a check as a means of
payment. The blogger’s wife exchanged emails with the potential buyer
and ended up not having a transaction with the potential buyer due to
different factors such as the use of a check as a means of payment, the
change of note name from Jaime to Wilfred in his succeeding mails,
offering an unnamed shipping agent he prefers, and suggesting to issue a
check that is more than the amount due and later on ask Tom’s wife to
send the excess money back to him.

Another cyber scam incident happened last February 2022 as

reported by Marc Jayson Caybyab of Philippine Star. Joseph Damian, an
employee of the Department of Education, said in an interview that he
himself was a victim of these online scams. Accordingly, Damian received a
text message in the middle of the night regarding transactions on one-time
pins. The next thing he knew, his savings account with a balance of
P163,000 was wiped out and left him with just P100 available balance.
Damian was left crying as he intentionally saved money for his wedding
with his girlfriend. He also mentioned that he was only to save up money
from 2017 as soon as he became a regular employee at his work.

The victim left a message for those who committed the fraudulent
activity and said in an interview, “I hope they don’t use the talents the Lord
gave them on bad deeds. They do not know the hardships endured by
those they are stealing from. I hope they are bothered by their
conscience,”. Benjo Basas, the Teacher’s Dignity Coalition chairman,
mentioned that Landbank should have alerted its clients about suspicious
transactions before such fraudulent activities could happen. Landbank, on
the other hand, promised to cooperate with the NBI in performing an
international investigation but nonetheless maintained that its system is
secured from hacking.

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2.4 Technological Issues in the Cyber World

Phishing

Phishing operations have been in the cyber world for decades, and
they are a worldwide critical problem that also poses a danger in the cyber
world. Cyber intruders are using a variety of innovative and inventive
tactics to carry out phishing operations, which are on the rise. Since an
outcome, this is relevant to the researchers’ study, as EXTRACK application
has been modified to protect and avoid this sort of technical problem. The
reviewed paper (Alabdan, 2020) defines phishing as a social engineering
approach that seeks to persuade the target of an attack to expose personal
information, such as an email address, login, password, or financial
information, using a variety of techniques. According to the study, the FBI
received roughly 100 complaints worldwide in 2018, with the most typically
targeted sectors being healthcare, education, and air travel, resulting in a
total net loss of nearly USD 100 million. In that case, phishing is a serious
crime and a dangerous threat for all institutions, not just, but also to
individuals, because hackers frequently use trusted organizations'
reputations to dupe their victims into revealing private data, including
financial information, which can lead to money theft without the victim's
knowledge. In addition, phishing emails were used to contract workers and
get their login credentials.

Here is a situation of a phishing operation in which people from

various fields, such as institutions play online games. As you may be
aware, playing online games is fast growing in popularity in this pandemic,
with players preferring to play on their mobile phones or their computers
due to country-imposed restrictions. In that case, phishing attacks are
becoming more prevalent as a result. According to Alaband (2020),
phishing scammers used the technique of "free skin giveaway" to gain
customer login information for Steam (a PC gaming platform). The fraud
was started via a remark made on a user's profile, which when clicked

16
connected to the New Network phishing site, which had details on the
giveaway as well as a fake scrolling chat bar to give the appearance of
credibility. However, this phishing attack has a process of phishing that is
elaborated, as phrased by Proposed Phishing Anatomy. In this modern
world, we are engaged in advanced technology which could be a victim of
phishing. According to Alkhalil et al., 2021, the initial step in the phishing
process is to obtain the personal information of the victims. As part of the
preparation process, the phisher then chooses which attack strategy will be
used in the phishing attack. The next step is the preparation phase, in
which the phisher begins to look for weaknesses that might lead to the
victim being cornered. In the third step, the phisher launches his operation
and waits for the victim to respond. In the valuables acquisition phase,
which is the last stage in the phishing process, the attacker might then
collect the spoils.

The following explanation demonstrates that phishing is a globally

important issue in the cyber world that must be addressed to be combated.
Regarding this research study, the researchers offer the EXTRACK
application, which has been upgraded and arranged in comparison to other
applications. It is more secure than other applications since EXTRACK will
do the task for the customers or users. As an example, if a phisher sends
an email that could lead to the phisher obtaining your information, as
described above in the initial step of phishing, this application will notify
you first, and if the consumer checks it and confirm that it is not a
legitimate email, the application will automatically kill that email and report
it as phishing. Furthermore, if the customer is unsure if the email is a scam
or not, the customer may have a second option: call the financial
institution, such as Metro Bank, to see whether the email was received
legitimately. The crucial point is that the customer should initiate contact,
using contact information that they have independently checked. Finally, if
a customer has performed a specific transaction, this modern application
reviews their account statements regularly to guarantee that all costs are
valid and displayed equitably.

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Fraud

People in today's society go to work every day to satisfy their

numerous requirements and desires in life. People looking for work can
acquire appointments to different jobs in businesses or the government as
a result of this. Others chose the road of establishing a company or small
business to generate a profit. With the aforementioned attempt to satisfy
people's needs and desires, some people, whether employed or not, use
illegal means to make money and meet their basic and secondary needs or
what we call fraud. To fulfill their ambitions and avarice, people commit
fraud using deceptive ways, especially during this time of the pandemic.

Here is an article authored by Kris Crismundo (2021), wherein the

Philippines ' online digital fraud has increased throughout the pandemic
which is based on the report of the Global Consumer Pulse and analytics
corporation TransUnion. TransUnion TruvalidateTM, a flagship identity
proofing, risk-based authentication, and fraud analytics are product
packages that provide data from billions of transactions and over 40,000
websites and applications for the research. In the final three months of
2021, 44 percent of Philippine-based customers were attacked by online
fraud based on the Global Consumer Pulse research, with Eastern Samar,
Makati City, and Manila being the top three places with the largest
percentage of alleged fraudulent digital transactions. Moreover, Gen Z, or
those born between 1995 and 2002, accounted for 48 percent of all online
fraud attempts, followed by Millennials, or those born between 1980 and
1994, with 42 percent. With that said report, there are people who,
regardless of their age, are unaware of the consequences of fraud, for
which there is a law known as Republic Act No. 8484 ("RA 8484"), also
known as "AN ACT REGULATING THE ISSUANCE AND USE OF ACCESS
DEVICES, PROHIBITING FRAUDULENT ACTS COMMITTED RELATIVE
THERETO, PROVIDING PENALTIES AND FOR OTHER PURPOSES''. Penalties
include imprisonment for not less than six (6) years and not more than ten

18
(10) years, as well as a fine of P10,000.00 or twice the value of the access
device acquired, whichever is more than, for anybody who uses an access
device, notably a credit card, without the owner's permission.

In the context of the discussion above, fraud is becoming increasingly

prevalent in the economy as a result of the relationship between the needs
and desires and those of a specific individual. People commit fraud as a
result of the normalization of corruption. There is a concept known as the
fraud triangle, in which research by famous criminologist Donald Cressey
found that people commit fraud when three components are present:
pressure, opportunity, and rationalization. Concerning that, one of the
features of the EXTRACK application is that the transaction is detailed when
it comes to transferring money or making a purchase online, and by using
detailed, the user can easily track the money they spend or the seller
receives the payment, such as an email or a message sent directly to the
user phone number. However, if the user receives an email that is not
permitted by the user, the user can report it to their financial institution to
safeguard their funds and avoid money theft which our application can do
the work for the user.

Estafa

Representing oneself as someone else or falsifying that they are

capable of doing something where in fact they cannot, give rise to estafa.
It is the legal term for the criminal offense of swindling, hence, offenders
can be penalized with fines and jail time. This fraudulent activity more
often than not leaves its victims to suffer from damages, such as the loss
of money, personal property or valuables. If for instance the fraudsters or
the individuals who committed this crime have taken both the material and
juridical possession of a property by means of a contract or agreement,
then this fraud is classified as estafa and not just theft (DDS Law, 2018).

19
 Article 315 of the Revised Penal Code provided that estafa may be
executed through:

1. “Unfaithfulness or abuse of confidence:

a. Altering the quality, quantity,and substance of the subject
matter in a contract;
b. Misappropriating or converting someone else’s money, goods,
or any other personal property; or denying these from them;
c. Taking advantage of a signature in blank

2. Deceit or fraudulent acts:

a. Using a fictitious identity to deceive another;
b. Altering quality, fineness or weight of anything pertaining to art
or business;
c. Issuing unfunded or postdated checks;
d. Availing of services from hotels, restaurants, inns, etc. without
paying for them

3. Fraudulent means:
a. Inducing another, through deceit, to sign any document;
b. Resorting to fraudulent practice to ensure success in a
gambling game;
c. Removing, concealing or destroying – in whole or in part – any
court record, office files, document, or any other papers.“

Malvin Kistiakowsky, an estafa offender, was arrested in Parañaque

City on a Tuesday afternoon for engaging in cryptocurrencies trading scam.
This estafa incident was reported to Camp Crame last March 2020, with
the presence of Maj. Gen. Debold Sinas, National Capital Region Police
Office (NCRPO) chief. The offender was sued by the complainants in the
Philippines and Singapore (Caliwan, 2020).

20
 In relation to the Republic Act of 10175 or the Cybercrime Prevention
Act of 2012, Kistiakowsky, 29, is facing charges of estafa and was brought
to the Pasay City Police Station for documentation prior to the procedural
return of the warrant of arrest to the Pasay City Regional Trial Court Branch
117.. Sinas also encouraged those who were victimized by Kistiakowsky to
file a case against the offender, and assured the further investigation on
the bitcoin anomalies allegedly committed.

On the same day, Kli Ban Rapista Agarrado alias Marco Castro
Margarico was arrested in an entrapment operation in his condominium
unit in Taguig City by the Philippine National Police-Anti-Cybercrime Group
(PNP-ACG) together with its director, Brig. Gen. Dennis Agustin. Agarrado,
22, is an inline seller who allegedly committed credit card fraud (Caliwan,
2020).

Accordingly, Agarrado made use of the credit card information of the

complainant, Cheyenne Sibal Edlagan, to make online purchases. The
suspect was charged for violation of Section 9 of RA 8484 (Access Devices
Regulation Act of 1998) as amended by RA 11449, Article 172 (falsification
by private individuals and use of falsified documents), Article 178 (using
fictitious name ang concealing true name), and Article 315
(swindling/estafa) of RPC in relation to Section 6 of the Cybercrime
Prevention Act of 2012.

With the final technological issue, estafa, the EXTRACK application

may also determine whether an email received by a financial institution is
authentic. Also, this application is environmentally friendly since it
automatically blocks unwanted emails and messages that might lead to
scams or what we term "estafa" activities, making it more high-tech and
secure than other applications.

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 CHAPTER III

METHODOLOGY

3.1 Research Design

This study aims to address common technological issues through a

Quantitative Research Design, aiming to cater the citizens of Zamboanga
City, Zamboanga del Sur including students and income earners who are
troubled with spending their money in an online setting. Under the kinds of
Quantitative Research Design, this study falls under the Descriptive where
it seeks to observe and measure the variables in order to investigate them.
The chosen design is best suited for this study because the researchers are
innovating an application that addresses the issues of online phishing,
fraud, and estafa cases by providing an application that provides security
and control expenses for the consumers.

It is appropriate to incorporate in this research, since the issues are

determined already, and the researchers aim to measure the application’s
feasibility and efficiency in addressing the issues of those troubled
individuals in the chosen area of the study through focus groups and
surveys.

3.2 Locale of the Study

Due to the current situation in Zamboanga City, conducting research

in the traditional setting such as face-to-face surveys and focus group
meet-ups might not be applicable, but through the help of different online
platforms such as Zoom Meetings, and Google Forms to be distributed to
the participants it can be executed. It will be conducted from April until
June of 2022. Giving out a month and a half to test the application, and
two weeks to measure and sum up the experience of the consumers.

22
3.3 Population and Sampling Design

The participants are the citizens of the Zamboanga City, ages from 15
years old to 50 and they will be given a chance to try the EXTRACK
application for a month and a half for free, and after the experience they
will be given a survey questionnaire through the use of Google Forms
related to the Statement of the Problem and will be analyzed through the
use of Slovin’s Formula for statistical presentation.

3.4 Statistical Treatment for Sampling Design

The study aim to have at least 250 participants including students,

faculties and non-teaching personnels, 50 respondents for each colleges
designated in the area of Zamboanga City, namely, Ateneo de Zamboanga
University, Western Mindanao State University, Universidad de Zamboanga,
Pilar College of Zamboanga City, Inc. and Southern City College. Using the
Slovin’s Formula, a non-probability sampling technique, because it is easier
to have a sample size of 35 than reaching out for the total of 250
participants, and it would be flexible to conduct, since the researchers
would only need to send a Google Form link to the participants.

Shown below are the following steps to achieve the 35 sample size, by
using the Slovin’s Formula.

1. Knowing the formula; n= N/1+Ne2, where n is the sample size, N is

the total population, and e2 is the margin of the error preferred.
2. Since the target is to have at least a total of 250 participants, and 50
for each of colleges, the group decided to do a solving for each
barangay and add it all up, so;

- For Ateneo de Zamboanga University

23
 n=50/1+(50x0.05)^2
n=6.8 or 7
- For Western Mindanao State University
n=50/1+(50x0.05)^2
n=6.8 or 7
- For Universidad de Zamboanga
n=50/1+(50x0.05)^2
n=6.8 or 7
- For Pilar College of Zamboanga, Inc.
n=50/1+(50x0.05)^2
n=6.8 or 7
- For Southern City College
n=50/1+(50x0.05)^2
n=6.8 or 7

3. After solving for each college’s sample size, add them up or multiply
the answer of one college into 5.
- 7 sample sizes for each college times 5 colleges equals 35.
Solution :
7(5) = 35

Note: The digit of 6.5 cannot be used, since there is no half of a

human person. The number of the respondents must be whole.
The qualifying criteria for the selection of the sample size is the
ability to conduct the research during the current situation and the realistic
response of the participants in the study.

3.5 Data Gathering Tool

The instrument used to gather data to answer by question is the

Likert Scale Instrument, where it is a common sampling technique which
consists of several declarative statements that express a viewpoint. It will
provide a strong opinion on how the variables are to the people’s opinion.

24
The 5-point Likert Scale Questionnaire consists of different degrees such as
strongly agree for the highest and strongly disagree for the lowest.

There is a sample survey on pages 31-31 (Figure 1) that will be

distributed to the participants of the study.

3.6 Data Gathering Procedures

The Covid 19 pandemic hinders the researchers from conducting a

survey or gathering data face to face. To promote safety and assurance
that the participant and researcher are free from any contamination, the
procedures will be via virtually or online. A google form will be made based
on the survey questionnaire and the link to the form will be sent to the
participants via Facebook Messenger, and Emails. After distributing, it will
automatically record the answers and the researchers will now compute the
percentage or average of their scores and record it to be used in the data
analysis and interpretation of the study.

3.7 Statistical Treatment Applied for the Results

The statistical tool to be used for the statement of the problem in this
study is the solving for the Percentage of the average scores of the
answers given by the participants, based on the questions stated in the
survey questionnaire.

Below are the following steps to solve for the percentage:

1. Determine the total or whole amount.

2. Divide the number to be expressed as a percent by the total. In most
cases, you’ll divide the smaller number by the larger number.
3. Multiply the resulting value by 100.
Below is the formula for solving the average:
m=sum of the terms divided by the number of the terms

25
3.8 Step-by-step processes of how the researchers came up with
the innovation of EXTRACK Application:

The group observed the use of scientific methods in creating the

application. Shown below are the processes of how they came up with the
innovation.

1. Ask a question
- The researchers put a question about how much some of the
students, employees, and other citizens of Zamboanga City spend
through an online transaction.

2. Do background research
- After inquiring about the issue to the people, they immediately
conduct a background check to determine if there was an application
that provides a tracker of every expense made in the online setting.

3. Construct a hypothesis
- The hypothesis of the innovation is “If I used online platforms for
shopping, paying my expenses, and other inquiries, it would lead me
to experience technological issues such as phishing, fraud, estafa
action, and other issues.”

4. Test your hypothesis

- The researchers tested their hypothesis and gained more than one
piece of evidence, that using online applications for those actions
leads to those technological issues.

5. Analyze the data and draw a conclusion

- After analyzing the evidence gathered, the group now conclude to
make an application called the Expense Tracker or EXTRACK, which
provides security and control through Transaction Tracing, Limitation

26
 of Expense, Two-Factor Authentication, and Periodical Updates on
User’s Finances to prevent the following technological issues of
phishing, fraud, estafa actions, and other issues.

6. Share your results

- To share the results, the researchers decided to have a focus group,
which are the participants of the study, and to let them try the
EXTRACK application for a month and a half.

FEATURES OF THE INNOVATION

- The EXTRACK is a lightweight, and easy-to-use application that

packs a lot of features into a small compact. An all-around application
regarding financial expenses and equipped with the essential tools
needed for users to keep track of expenditures. Apart from other
online expense trackers, this application is a modernized tool that is
more organized and enhanced. The app incorporates the following
features:

- NOTE:
1. EXTRACK (combination of EXpense and TRACKer)
2. Lightweight (only utilizes a minimal amount of RAM & small
amount of device memory)
3. Small compact (one place access)

Checklist Summary of Features:

1. The EXTRACK application will enter transactions automatically while

doing the following computations on behalf of the user.

2. The EXTRACK application will allow the users to set an expenditure

limit at their own discretion and once the limit has been reached,

27
 users will not be able to use their e-money unless it is highly
necessary.

3. As indicated in number two, the EXTRACK application will be synced

with other apps, the majority of which will feature payment
alternatives.

The transactions will be noted in a detailed form. For example:

1. "You paid for two dresses from Shein worth 680PHP at 5:30
PM, Wednesday."
2. You paid for a cellphone case from Shopee worth 100PHP at
1:25 PM, Friday."
3. "You paid a subscription on Netflix 549 PHP at 8:15 AM,
Saturday."

NOTE: All of the transactions will be organized in a sequencing event

(based on the calendar: date and time) and classified by the
importance of the transaction.

4. The EXTRACK application will allow the users, specifically the

students, to indicate their allowances and income, if applicable, and
will then provide them with suggestions on how much money to
allocate in a single expenditure (budgeting).

5. The EXTRACK app will connect with the users' online banking,
financial applications, and e-wallets. Because this application serves
as one of many types of online banking, financial applications, and
e-wallets, every transaction in those areas will be immediately logged
in the expenditure tracker for the convenience of users.

6. The EXTRACK application will provide detailed updates on the

expenditures of the users as a reminder to be mindful of their online
financial engagements.

28
Explanation of EXTRACK logo:

(Logo is placed under appendix figure 2 page )

● Color Palette: Shade of Blue

According to color psychology, blue represents the sense of feeling

secure and in a calm state. It gives you a thought of peace and order. At
the same time, it symbolizes stability and reliability. Most businesses that
want to showcase security opt to use blue in their icons or logos, and
during advertisements in promoting their products.

The researchers, chose this color simply because there is a necessity

to make the users of the application feel safe and trust the application with
their finances. In addition, there is also an obligation to give the users
assurance that everything in that application is reliable and well-founded,
every aspect there is on-point and deliberate, relative that they do not
need to worry about any technical problems or issues such as hacking,
phishing, or any financial crimes.

● Style: Chic, smart, and minimalistic

The researchers decided that “less is more”, which is why the design
of our icon is simple but eye-catching in a way that the details of the
design are precise, and not overpowering since the elements are carefully
selected because the researchers want to avoid messy formats that is
uncomfortable to the eyes of the users. The researchers also opted to
make the application look very organized and understandable (easy to use)
wherein the users know how to navigate and locate each section.

● Application name: EXTRACK

29
 As mentioned earlier in this paper, the EXTRACK comes from the
words EXpense and TRACKer, and the researchers combined those letters
from the two words to create the brand name. EXTRACK is the name
simply because the application is all about tracking expenses. It is an easy
word to remember since it is short, surely that individuals could easily recall
right away the name of the application.

● Elements

An expense tracker icon can be detected to showcase that the

application is to track the user's expenditures. Also, there is a border that
surrounds the expense tracker which symbolizes a shield or protection to
the application, it represents that no viruses or hacking can ever penetrate
the application. It will always be guarded and the users do not need to
worry about those technical issues. Lastly, included in the icon is the name
of the application to top everything off.

30
 Appendices

Survey Questionnaire:

EXTRACK APPLICATION
Survey Questionnaire

Name:_________________________________________________
Age:_________________________
School:________________________________________________
Check the suitable box for you below:
Student
Faculty
Non-teaching Personnel (NTP)

Experience while using the Strongly Agree Neutral Disagree Strongly

EXTRACK application: Agree Disagree

a. I experienced a phishing attack

while using the application.

b. I experienced fraud while using

the application.

c. I experienced an estafa action

while using the application.

Emotions/Feelings while using

the EXTRACK application:

a. I am confident that I can

control my expenses while
using the application.

b. I felt safe and secure while

using the application. (In terms
of providing your personal

31
 information, etc.)

c. I can trust the application very

well.

Feedback after using the

application:

a. It controls my budget/expenses
for the month.

b. I would like to use the

application for the long term.

c. I am not satisfied with the

performance of the application.

d. I am satisfied with the

performance of the application.

e. I would recommend this

application to my fellow
students, faculty members,
non-teaching personnel, and
others.

(Figure 1. Survey Questionnaire)

32
Working Model: Icon of the Application:

Figure 2. EXTRACK logo

33
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