CHAPTER 2

TRANSNATIONAL ORGANIZED CRIME

CONCEPT OF TRANSNATIONAL CRIME

The concept of transnational crime was coined by the United Nations (UN) Crime
Prevention and Criminal Justice Branch to identify certain criminal phenomena transcending
international borders, transgressing the laws of several states or having impact on another
country.

TRANSNATIONAL CRIME

- a continuing illegal activity of group of person which is primarily concerned with the
generation of profits, irrespective of national boundaries as a result of globalization.

GLOBALIZATION

- refers to the rapid development of the western culture that ultimately affects other
cultures in the world as brought by intellectual and technological advances, in which
some crimes occurring in other countries are attributed.

TRANSNATIONAL ORGANIZED CRIME

- is a crime perpetuated by organized criminal group which the aim of committing one or
more serious crimes or offenses in order to obtain directly or indirectly, a financial or
other material benefits committed through crossing of borders or jurisdictions

ORGANIZED CRIMINAL GROUP

 shall mean a structured group of three or more persons, existing for a period of
time and acting in concert with the aim of committing one or more serious crimes
or offenses established in accordance with this convention, in order to obtain,
directly or indirectly , a financial or material benefit
SERIOUS CRIME

 shall mean conduct constituting an offence punishable by maximum

deprivation of liberty of at least four years or a more serious penalty

An offense is transnational in nature if:

- It is committed in more than one State;

- It is committed in one State but substantial part of its preparation, planning, direction or
control takes place in another State;

- It is committed in one State but involves an organized criminal group engages in criminal
activities in more than one State; or

- It is committed in one State but has substantial effects in another State.

Factors Making a Nation “hospitable” to Transnational Crimes

1. Corruption

2. Incomplete or weak legislation

3. Poor enforcement of existing laws
4. Non-transparent financial institutions
5. Unfavorable economic conditions
6. Lack of respect for the rule of law in society
7. Poorly guarded national borders
8. Lack of political will to establish rule of law
9. Geographic location (e.g. along arms or narcotics trafficking route)
10. Regional geopolitical issues (e.g. long-standing territorial dispute).

PRIMARY STRATEGIES AGAINST TRANSNATIONAL ORGANIZED CRIME

- Good Governance

- The Rule of Law

- International Cooperation

Executive Order No. 265

- creating the OSETC for a stronger campaign against transnational crime

- the Office of the Special envoy on Transnational Crime is the agency concerned in
resolving overlaps in systems and procedures and determines the appropriate agency
competent to address a specific transnational crime issue

Transnational Crimes

 Trafficking in Persons
 Terrorism
 Drug Trafficking
 Cybercrime
 Money Laundering
 Environmental Crime
 Economic crime
 Intellectual Property Theft
 Piracy and Armed Robbery Against Ships
 Illicit Trade (smuggling) of Small Arms and Light Weapons

HUMAN TRAFFICKING

TRAFFICKING IN PERSON (TIP)

 a form of modern-day slavery

 refers to the recruitment, transportation, transfer or harboring, or receipt of
persons with or without the victim's consent or knowledge, within or across
national borders by means of threat or use of force, or other forms of coercion,
abduction, fraud, deception, abuse of power or of position, taking advantage of
the vulnerability of the person, or, the giving or receiving of payments or benefits
to achieve the consent of a person having control over another person for the
purpose of exploitation which includes at a minimum, the exploitation or the
prostitution of others or other forms of sexual exploitation, forced labor or
services, slavery, servitude or the removal or sale of organs.

Section 3a, RA 9208

Push Factors to Trafficking

1. Individual level

1. Family
 2. Community
3. Society

Individual level

 Lack of education and information

 History of abuse and exploitation
 Women’s aspiration

Family

 Domestic violence or marital discord

 Desertion
 Separation
 Neglect of parents
 Breadwinner or desire to improve the family’s economic condition

Community

 Congested neighborhood
 Poor housing and living conditions
 Lack of employment opportunities
 Lack of basic social services

Society

 Political and economic insecurity

 Political corruption
 Conflict
 Structural adjustment policies resulting in the rising cost of living
 Poverty
 power relations and gender inequality
 Lure of migration
 Consumerism
 Supply and demand

Pull factors to trafficking

 Increased ease of travel (cheaper and faster travel opportunities, easier

access to passport);
 Higher salaries and standard of living in larger cities and countries abroad
(greater possibilities for acquiring new skills and education, increased job
opportunity, and mobility);
 Established migration routes and ethnic, national communities;
  Active demand for migrant workers in destination countries combined with the
existence of recruitment agencies and persons willing to facilitate jobs and travel;
and
 High expectations of opportunities in other countries boosted by global media
and internet access and stories of returning migrants or those whose families
have profited from remittances.

Global Status of Human Trafficking

 In 2004, according to U.S government 600,000 to 800, 000 people were

victims of trafficking worldwide.

(mostly female and minors and 70 percent were trafficked for sexual exploitation)

 According to the data of International Labour Organization 12.3 Million people

were trafficked around the world (across borders and individual countries)
 300, 000 children were trafficked to served in armed conflicts (UNICEF)

TIP in Asia


o 5 million were trafficked in Asia (ILO).

(1/3 trafficked for other form of economic exploitation, the rest are for commercial sexual
exploitation)

Status of Human Trafficking in the Philippines

 According to the United Nations Children's Fund (Unicef) an estimated 60,000 to

100,000 children in the Philippines are involved in prostitution rings.
 According to the International Labour Organization (ILO) about 100,000 children are
involved in prostitution.
 US government reports, the number of child victims in the Philippines range from
20,000 to 100,000, with foreign tourists, particularly other Asians, as perpetrators.
 The Philippines is ranked under Tier 2 Watch List in the 2009 Trafficking in Persons
Report of the United States (US) State Department due to the Philippine government’s
alleged failure to show evidence of progress in convicting trafficking offenders,
particularly those responsible for labor trafficking.

Vulnerable sector
  Profiles of women trafficked show that they are mostly young, without or less
education coming from the rural areas and poor families, which include women
displaced in Central Luzon due to the eruption of Mt. Pinatubo or the landslide in
Guinsaugon Southern Leyte.

Philippine Government Manifested its Commitment against TIP through the

Creation/Amendment of other legislative acts such as:

 Mail-Order Bride (RA 6955)

 Anti-Rape law of 1997 (RA 8553)
 Rape Victim Assistance and Protection Act of 1988 (RA 8505)
 Special Protection of Children Against Abuse, Exploitation and Discrimination
Act (RA 7610)
 An Act Prohibiting the Employment of Children Below 15 Years of Age in Public
and Private Undertakings (RA 7658)
 Migrant Workers and Overseas Filipinos Act of 1995 (RA 8042)
 Philippine Passport Act of 1996 (RA 8239)
 Inter-Country Adoption Law (RA 8043)

Republic Act 9208

- Anti-Trafficking in Persons Act of 2003

- Approved May 26, 2003

- Consolidation of Senate Bill No. 2444 and House Bill No. 2444

Section 4. Acts of Trafficking in Persons. - It shall be unlawful for any person, natural or
juridical, to commit any of the following acts:

(a) To recruit, transport, transfer; harbor, provide, or receive a person by any means, including
those done under the pretext of domestic or overseas employment or training or apprenticeship,
for the purpose of prostitution, pornography, sexual exploitation, forced labor, slavery,
involuntary servitude or debt bondage;

(b) To introduce or match for money, profit, or material, economic or other consideration, any
person or, as provided for under Republic Act No. 6955, any Filipino woman to a foreign
national, for marriage for the purpose of acquiring, buying, offering, selling or trading him/her to
engage in prostitution, pornography, sexual exploitation, forced labor, slavery, involuntary
servitude or debt bondage;
(c) To offer or contract marriage, real or simulated, for the purpose of acquiring, buying, offering,
selling, or trading them to engage in prostitution, pornography, sexual exploitation, forced labor
or slavery, involuntary servitude or debt bondage;

(d) To undertake or organize tours and travel plans consisting of tourism packages or activities
for the purpose of utilizing and offering persons for prostitution, pornography or sexual
exploitation;

(e) To maintain or hire a person to engage in prostitution or pornography;

(f) To adopt or facilitate the adoption of persons for the purpose of prostitution, pornography,
sexual exploitation, forced labor, slavery, involuntary servitude or debt bondage;

(g) To recruit, hire, adopt, transport or abduct a person, by means of threat or use of force,
fraud, deceit, violence, coercion, or intimidation for the purpose of removal or sale of organs of
said person; and

(h) To recruit, transport or adopt a child to engage in armed activities in the Philippines or
abroad.

Section 5. Acts that Promote Trafficking in Persons. - The following acts which promote or
facilitate trafficking in persons, shall be unlawful:

(a) To knowingly lease or sublease, use or allow to be used any house, building or
establishment for the purpose of promoting trafficking in persons;

(b) To produce, print and issue or distribute unissued, tampered or fake counseling certificates,
registration stickers and certificates of any government agency which issues these certificates
and stickers as proof of compliance with government regulatory and pre-departure requirements
for the purpose of promoting trafficking in persons;

(c) To advertise, publish, print, broadcast or distribute, or cause the advertisement, publication,
printing, broadcasting or distribution by any means, including the use of information technology
and the internet, of any brochure, flyer, or any propaganda material that promotes trafficking in
persons;

(d) To assist in the conduct of misrepresentation or fraud for purposes of facilitating the
acquisition of clearances and necessary exit documents from government agencies that are
mandated to provide pre-departure registration and services for departing persons for the
purpose of promoting trafficking in persons;

(e) To facilitate, assist or help in the exit and entry of persons from/to the country at international
and local airports, territorial boundaries and seaports who are in possession of unissued,
tampered or fraudulent travel documents for the purpose of promoting trafficking in persons;
(f) To confiscate, conceal, or destroy the passport, travel documents, or personal documents or
belongings of trafficked persons in furtherance of trafficking or to prevent them from leaving the
country or seeking redress from the government or appropriate agencies; and

(g) To knowingly benefit from, financial or otherwise, or make use of, the labor or services of a
person held to a condition of involuntary servitude, forced labor, or slavery.

Section 6. Qualified Trafficking in Persons. - The following are considered as qualified

trafficking:

(a) When the trafficked person is a child;

(b) When the adoption is effected through Republic Act No. 8043, otherwise known as the
"Inter-Country Adoption Act of 1995" and said adoption is for the purpose of prostitution,
pornography, sexual exploitation, forced labor, slavery, involuntary servitude or debt bondage;
Deficiency Syndrome (AIDS).

(c) When the crime is committed by a syndicate, or in large scale. Trafficking is deemed
committed by a syndicate if carried out by a group of three (3) or more persons conspiring or
confederating with one another. It is deemed committed in large scale if committed against three
(3) or more persons, individually or as a group;

(d) When the offender is an ascendant, parent, sibling, guardian or a person who exercises
authority over the trafficked person or when the offense is committed by a public officer or
employee;

COMPUTER CRIME

 any crime accomplished through special knowledge of computer technology.

 any crime where computer is used as a tool or as a target or incidental to the
commission of a crime.
 Also known as Cybercrime
 Any illegal act in which knowledge of computer technology is used to commit
the offense. (L. E. Quaratiello)
 All illegal activities that are committed by or with the aid of computer or
information technology or in which the computers are the target of the criminal
enterprise. (Martin Forst)

CYBER CRIME IN THE PHILIPPINES

The LOVE BUG

 By far the most popular incidence of cyber crime in the Philippines is the “ILOVEYOU
Virus” or the LOVE BUG. The suspect in the case, a 23-year old student from a popular
computer university in the Philippines drafted the virus with the vision of creating a program that
is capable of stealing passwords in computers, ultimately to have free access to the internet.

During the height of the LOVE BUG incident, Reuters has reported: "The Philippines
has yet to arrest the suspected creator of the 'Love Bug' computer virus because it lacks laws
that deal with computer crime, a senior police officer said". The fact of the matter is that there
are no laws relating to Cybercrime in the Philippines. The National Bureau of Investigation is
finding it difficult to legally arrest the suspect behind the 'Love Bug' computer virus.

As such, the need for countries to legislate Cyberlaws relating to Cybercrime arises on
an urgent priority basis. Due to the incident, the Philippines have seen the necessity for the
passage of a law to penalize cyber crimes, thus the enactment of Republic Act 8792 otherwise
known as the Electronic Commerce Act.

RA 8792

- legislated because of I love you virus

- This Act shall be known and cited as the "Electronic Commerce Act.”

- Approved June 14, 2000

Common Types of Cyber Crimes already handled by NBI

1. HACKING / CRACKING
2. MALICIOUS EMAIL SENDING
3. INTERNET PORNOGRAPHY
4. LAUNCHING OF HARMFUL COMPUTER VIRUSES
5. DISTRIBUTED DENIAL OF SERVICE ATTACKS (DOS)
6. WEBSITE DEFACEMENT

1. ACQUIRING CREDIT CARD INFORMATION FROM AN E-COMMERCE WEBSITE

2. INTERNET SHOPPING USING FRAUDULENTLY ACQUIRED CREDIT CARDS
3. WIRE TRANSFER OF FUNDS FROM A FRAUDULENTLY ACQUIRED CREDIT CARD
4. ON-LINE AUCTION FRAUD

WHAT ARE COMMON METHODS AND STANDARD TERMS USED TO DESCRIBE CYBER
CRIME?
Hacking

- is the act of illegally accessing the computer system/network of an individual, group or

business enterprise without the consent or approval of the owner of the system

Cracking

- is a higher form of hacking in which the unauthorized access culminates with the
process of defeating the security system for the purpose of acquiring money or
information and/or availing of free services

Malicious Sending of E-mails

- the sending of malicious and defamatory electronic mails for the purpose of extorting
money, or threatening prospective victims

Internet Pornography

- The trafficking, distribution, posting, and dissemination of obscene material including

children’s nude pictures, indecent exposure, and child sex slavery posted into the
internet, live streaming videos aired through the internet

A computer virus

- is a computer program that can copy itself and infect a computer without permission or
knowledge of the user

Launching of Harmful Computer Virus

1. Virus
2. Worm
3. Trojan Horse

Worm
- spread itself to other computers without needing to be transferred as part of a host

Trojan horse

- is a file that appears harmless until executed. Trojan horses do not insert their code
into other computer files

Logic bomb

- a set of instructions secretly inserted into a program that is designed to execute if a

particular program is satisfied

- the bomb lies dormant until a particular date is reached or command entered

Identity theft

- defined as the criminal act of assuming person’s name, address, social security number,
and date of birth in order to commit fraud

Phishing

- sending fraudulent e-mails or website pop-ups, to get victims to divulge sensitive

financial information such as credit card numbers or social security numbers

Distributed Denial of Service Attacks

- DDoS attacks can be committed by employing multiple computers controlled by a single

master computer server to target a particular server by bombarding it with thousands of
packets of data in an attempt to overwhelm the server and cause it to crash

Website defacement

- is the unauthorized modification of a website

Acquiring Credit Card Information from a Website that offers E-Services

- When you shop online, the most convenient way to pay for the items you order is
through your credit card. When you pay thru your credit card, you need to disclose
information such as your complete name, your postal address, zip code, state, phone
number credit card account number, its expiration date and its security code/pin. Upon
entering the above-mentioned information, it will be verified “real-time” by the site
merchant. It usually takes a minute to verify whether the credit card is valid or invalid. If
valid, the information you entered will be stored in the website’s database server.
Hackers look for the file containing the credit card information of all the customers who
bought from a certain e-commerce site. Upon acquisition thereof, it will be decrypted to
make it readable and all the information of the transactions will be made
available.Hackers prefer VISA, AMERICAN EXPRESS and MASTERCARD when
filtering credit card information. It is because VISA and MASTERCARD are widely
accepted by almost ALL Internet Shopping Sites. American Express on the other hand
has no CREDIT LIMIT

 Credit card numbers of American Express start with the number 3, MasterCard
credit cards start with the number 5 while VISA Credit cards start with the number 4

 American Express credit cards have 15 digits Account Number while Visa and
Mastercard credit cards contain 16.

Internet Shopping Using Fraudulently Acquired Credit Card

Hackers, upon acquiring the desired credit card information now conducts “window
shopping”, hopping from one shop site to another, looking for cellphones, gadgets, apparels,
computer peripherals, softwares etc. When he finds what he wants to buy, he then add/s his
desired item/s to the shopping cart and checkouts. He will then supply the Credit Card
information of the fraudulently acquired credit card such as the Complete name of the
cardholder, address, zip code, state, email address, credit card number and expiration date.
Other pertinent information such as shipping address of the items ordered will have to be
supplied too.

Wire Transfer of Funds from Fraudulently Acquired Credit Card

When a hacker knows your complete credit card information, he can extract CASH from
the acquired credit/debit card online. By signing up with Western Union Money Transfer
(http://www.westernunion.com) using the fraudulently acquired credit card information, he can
pretend that he will just send money to his relative and western union will directly debit the credit
card and it will reflect on the billing statement of the original credit card holder. Wire transfer of
funds using credit cards require the credit card security number.
Online Auction Fraud

- First, the fraudster should sign up for an account at an online auction site such as e-bay,
yahoo auctions or U-Bid

- The fraudster falsifies all information that he enters on the signup page. The only true
information is his email address, for he will be contacted by interested bidders by means
of email.He will be asked to provide a credit card. This is where he will need the
fraudulently acquired credit card. When all of the required fields are signed up, his
application will be approved and he will be a registered member of the said auction site.
He is now then allowed to bid, and auction any item. A fraudster will auction expensive
items such as laptops, cellphones, PDA’s (handheld devices), desktop computers,
camcorders and hard to find memorabilias. He will then sell it at a lower price for
legitimate bidders to bid immediately. An online fraudster only accepts payments thru
personal checks, money order, wire transfer and western union money transfer. It is
bluntly stipulated in his auction page.

TECHNICAL TERMS

ISP – stands for Internet Service Provider. It provides internet service to internet users.

IP Address – series of numbers assigned by an Internet Service Provider to an internet user

when it connects to the Internet

Dynamic IP Address – a type of IP Address that changes everytime the internet user accesses
his Internet Service Provider. It is usually assigned to dial-up or base speed broadband service
subscribers (eg. ISP Bonanza, Surfmaxx, PLDT myDSL 128kbps service etc.)

Static IP Address – a type of IP Address that is constant regardless of the time or number of
attempts the internet user accesses the internet. It is usually assigned to High-Speed Internet
Users or Corporate Accounts (eg. ADSL (Asymetric Digital Subscriber Line) connections, E1
Internet Connections, OC3 Internet Connections, T1 Internet Connections, Leased Line Internet
Connections)

Website – a portfolio of a person / organization / entity / company which is posted on the

Internet for accessibility worldwide.

The INTERNET PROTOCOL (IP) ADDRESS is the anchor of the investigation of all
crimes committed via the internet. The identification of the IP Address leads to the identity of the
Internet Service Provider (ISP) used to access the internet and eventually the subscriber of the
account where the internet activity was performed.
The IP Address as given by the ISP depends on the type of internet account a subscriber
maintains, whether it is a DYNAMIC IP or STATIC IP.

If Static:

Subscriber information (name, billing address, installation address, type of internet

account, usage and costs etc.) if applicable

If Dynamic

log reports indicating telephone number used to make “dial-up” access

VERY IMPORTANT:

The address of the subscriber as given by the ISP or Phone Company should be
analyzed to determine whether it is a Billing Address or an Installation Address.

For purposes of a search warrant application, the Installation Address is the more
important matter to consider. The purpose of a Search Warrant application/ implementation in a
cyber crime investigation, as with any other offense is to confiscate and seize the
instruments/implements, tools used in the commission of the offense. Since the crime was
committed with the aid of a computer, the same and its peripherals are the instruments used in
its commission.

TOP TEN SECURITY TIPS FOR COMPUTER USERS

1. Never send an e-mail that you wouldn't let your wife or boss to read.
2. Turn off your computer when you are not using it. It is the only sure way to keep the
hackers out.
3. Use a password to log onto your computer. Most operating system let you set a
password and to change it regularly.

4. Don’t accept cookies. If you have to, delete them when you are finished surfing.
5. Use the latest versions and software patches for your e-mail and your browser. New
security loopholes are constantly being discovered.
 6. Keep your antivirus up to date. Hackers never rest. Every email attachment can
contain a virus, so scan it before you open it.
7. Watch your laptop at the airport. Be specially careful at X-ray security machines,
which is where most laptop theft occur.
8. Don’t use the same password over and over. Make new variations.
9. Use a paper shredder. Don’t just throw out unsolicited credit card application. Shred
them.
10. Never give out your social security number, online or off. This information in a wrong
hand is license to steal

Reference:

Notes from Quest Review Center