Introduction to Cybercrime

GERONIMO L. SY
Assistant Secretary
Department of Justice
2011
 Outline

1. Introduction – Technology and crime

2. Definition, typology of cybercrime
3. History of cybercrime
4. Law
5. Jurisprudence / Case studies
6. Special issues
7. Conclusion – Crime of the Future
 Introduction
l What is technology?
l Use of fire
l What is crime?
l Classic understanding
l Technology crime versus cybercrime
l White collar crime
 Definition, Typology
l With the use of computers
l Computers as storage and means
l Computers as the object

l Scope of cybercrime
l 'Cyber-'
l Cyber sex, cyber fraud, cyber terrorism
 History
l 1990s
l “I Love You” virus case
l 2000 – E-Commerce
Commerce Act
l 2001-2003 – Twin computer crime laboratories
l 2004 - 1st cybercrime conviction
l 2006 - 2nd cybercrime conviction
l 2009 – Consolidated cybercrime bill
 E-Commerce
Commerce Act
l Highlights
l Section 33
 Rules on Electronic Evidence
l Key features
 COMPUTER CRIMES
• 2000 – Onel de Guzman (released the
“ILOVEYOU” virus)
• 2002 – Mahmoud Nuseir, et al, hacked into
telecommunications systems;
- they are believed to be members of the Veloso
gang, one of the most notorious kidnap-for-
ransom and robbery/holdup group in the
country.
 COMPUTER CRIMES
2005
• JJ Maria Giner - hacked and defaced the
Philippine government portal “gov.ph”
-first
first Filipino convicted of computer crime
• Globe Telecom scam – warns against fraudulent
message circulating nationwide and
abroad.
- Meanwhile, an electronic mail with subject
“Globe Telecom Warning” has been circulating
 COMPUTER CRIMES
outside and within the company stating that a
fraudulent company is using a device that will enable it
to access one’s SIM card once the numbers 90 or 09
are pressed. This prompted Globe management to
announce the message is not official and its contents
are not true.
• Brunei Text Scam – incidence of text scams
which have victimized both Filipinos and
Bruneians.
 COMPUTER CRIMES
2006
• Jollibee fiasco – a controversial video circulating
on the internet depicting local fastfood
chain mascots in a “distasteful situation”
• Jeffric Carlos Abiera – second person convicted
for violation of the E-Commerce
E Law.
- used the Sitel Phil. Corp. system to illegally
secure credit card information from sister firm
Sistel USA.
 COMPUTER CRIMES
• PNB Phishing Scam – an email pretending to be
PNB Security Verification Process.
- they made it look like the URL reflect that of
the PNB, they are linked to a site. The URL is
redirected which would look like a PNB
Online Banking website.
website
• Metrobank Phishing Scam – an email from
“Metrobank Authority” invites the e-

“
 COMPUTER CRIMES
banking account holders to join a lottery by
providing their customer ID (username) and
password to specified websites.
websites Gaining access
to users account.
2007
Eleazard Castillo, et al – operators of “Francswiss”
online, one of the inernet-based “Ponzi”
Investment Scheme.
Scheme
 COMPUTER CRIMES
• Internet pornography – 13 were charged for
allegedly editing and providing
pornographic materials to Internet
websites using legitimate “outsourcing”
companies as fronts.
fronts
2008
• Black Suede Operation – a video uploaded on
Youtube showing doctors and nurses
 COMPUTER CRIMES
from the Vicente Sotto Memorial
Medical Center (VSMMC) making fun of
a surgery patient who had a perfume
canister stuck into his rectum.
• Roschelle Claro – a former head of quality
control department of Vibelle Mftg. Corp
(VMC) was accused of stealing
company’s secrets using a universal
 COMPUTER CRIMES
serious bus thumb drive, which
was used to copy proprietary
company information.
• Ritchie Bagnotan – hacked into Davao Light and
Power Company’s contractor
billing computer system and a
related computer system for
monitoring of contracted works that
 COMPUTER CRIMES
enabled him to generate fictitious work
orders and payments for them.
- he was charged for 18 counts of computer –
hacking.
• Mark Tapere Siarot – allegedly took over a
computer of a Western Union outlet in
uptown Cebu City and made over P2
million in bogus payouts.
 COMPUTER CRIMES
• Gmail: Attempted Phishing – phishers attempted
to fraudulently acquire sensitive
information by masquerading as a
trustworthy entity such as gmail, in an
electronic communication.
2009
Law Firm Scam – Sycip, Salazar, Hernandez,
Gatmaitan, one of the leading local law
 COMPUTER CRIMES
firms was duped by a foreign client into
advancing P50 million for a deal that
would supposedly bring around P100
million to the firm’s earnings.
- the firm checked its client’s bank account
before putting up the advance payment. The
bank account allegedly disappeared into thin
air after the law firm made the P50M advance
 COMPUTER CRIMES
• Hayden-Katrina
Katrina Scandal – videos uploaded on
Youtube showing intimate scenes.
- on June 2009, hackers and computer virus
writers have exploited the controversial sex
videos now making rounds on the internet.
Malicious software are making their rounds in
some US government websites masking
themselves as links to the actual sex videos.
 COMPUTER CRIMES
• ATM Identity Theft – ATM identity theft steals
ATM card data and make their own
replica afterwards. The ATM scammers
use gadgets to allegedly steal the
identity of the real holder including pin
codes, passwords and name using a
simple gadget. The authorities have not
disclosed the kind of gadgets used.
 COMPUTER CRIMES
• DFA hacked – the computer network of the DFA
has been infiltrated by a cyber spy
network based mainly in China. The
Canadian researchers detected a cyber
espionage network involving more than
1,295 compromised computers from the
ministries of foreign affairs of the Phils.,
Iran, Bangladesh, Latvia, Indonesia,
Brunei, Barbados and Bhutan.
 COMPUTER CRIMES
• Benzon Umeh – a Nigerian National accused of
credit card fraud and identity theft.
• Paypal Scam – malicious emails claiming to be
Paypal, asking to click the link provided
and asking for information such as
names, account numbers and password
and credit card details, etc.
 COMPUTER CRIMES
• Target: Gmail – bogus chat messages attempts
to steal usernames and passwords.
• 419 Scam – a scam from a Nigerian syndicates
that involves sending e-mails to
unsuspecting victims about employment
monetary gains or other too-good-to-be-
true offers using Filipino names to
victimize OFWs and other job
applicants in the Philippines.
 COMPUTER CRIMES
• Jacque Bermejo incident – a controversial
statement allegedly made by a Filipina
overseas worker in Dubai that mocked
Filipino victims of tropical storm Ondoy.
- Jacque Bermejo has been the target of hate
threats from Filipinos after someone used her
identity to post a very offensive statement
against Pinoys affected by the onslaught of
 COMPUTER CRIMES
of tropical storm Ondoy on social network
site, Facebook.
• Gail Ilagan – a clinical psychologist on the faculty of
the Ateneo de Davao University was a victim
of internet phishing. Someone hacked into
her gmail account. Her account was used to
ask for money from the names in her
contacts.
 COMPUTER CRIMES
• OFW’s text scam – the DFA warned the
Filipinos abroad against falling prey to
text scams which have been circulating
recently in Austria and other countries.
• 3 Filipinos Accused of hacking US Telecom lines
- the US Justice Department unsealed
indictments against 3 Filipino residents
accused of hacking into thousands of
COMPUTER CRIMES
private telephone network in the United
States and abroad, and then selling
access to those networks at call centers
in Italy that advertised cheap
international calls.
calls
- Mahmoud Nusier, Paul Michael Kwan and
Nancy Gomez between October 2005 and
December 2008, broke into PBX (private
 COMPUTER CRIMES
branch exchange) systems, mainly by
exploiting factory--set or default passwords on
the voicemail system.
• 2 Koreans nabbed for defrauding Globe
- diversion of foreign calls through the
Internet.
- Gyoung Hwan Kim, Young Soo Yang,
resorted to International Simple Resale (ISR),
COMPUTER CRIMES
diverts calls through the Internet then forwards
it to Globe, then the Philippines. The foreign
calls are made to appear as local calls,
reducing the Globe’s income and the gov’ts
revenue through taxes.
taxes They have been
charged with violating the e-commerce law
and the Revised Penal Code.
 COMPUTER CRIMES
• Nigerian held for credit card fraud – 4 Nigerians
accused of purchasing plane tickets
through fraudulently acquired credit cards
- they would access the on-line
on booking system
of PAL and buy an e-ticket
e using a stolen credit
card. Then they will ask for payment from the
traveler in exchange for the ticket.
 COMPUTER CRIMES
• Black Dollar Scam – an email is sent to lure the
victim then fraudulently obtain money
from a victim be persuading him/her that
a pile of banknote-sized
banknote paper in a trunk
or vault, that after being “washed” with a
special chemical would turn into real US
currency.
CYBERCRIMES
Jurisprudence
Case Studies
Conclusion: Crime of the Future