16 nabbed for hacking Globe Telecom system

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Director Samuel Pagdilao, Chief of the Criminal Investigation and Detection Group (CIDG). INQUIRER FILE PHOTO

MANILA, Philippines – Sixteen people, including several South Korean nationals, have been arrested by police for allegedly hacking into the Globe Telecom’s system to make unbilled international calls.

Director Samuel Pagdilao, Chief of the Criminal Investigation and Detection Group (CIDG), said in a statement Tuesday that nine Koreans and several Filipino suspects have been apprehended through successive raids in Pasig, Manila, and Mandaluyong cities.

He said they belong to a cybercrime group that has been placed under police surveillance for several weeks.

The Koreans were identified as Eun Young Bae, Kwang Ming Song, 27, Junggyn Yang, 30, Kim Tae Hyung alias Martin Kim, Sehun Park, a certain Choi, Jong-Seok alias Edward Choi, Jung Dongchan alias Kevin Jeong, Jinwan Kim alias Liam Jin.

The other suspects were identified as Marcela Dela Paz, Chachin La Evidia Bornales, Christine Joy Gicale Carondoy alias Joya, 18, Joan Gicale Turno alias Queennie, 19, Jazzy Romero de la Cruz, 20, Jessa Grande Llaguno, 18, and Michelle Cambe Nacional, 26.

The suspects will be charged with violation of Republic Act No. 8484 or “Access Devices Regulation Act of 1998,” Pagdilao said.

Senior Superintendent Gilbert Sosa, CIDG’s Anti-Transnational and Cyber Crime Division (AFCCD) Chief, said that Globe had complained about the alleged hacking being done by the suspects through International Simple Resale (ISR) of international calls.

“ISR is an illegal act in the country because it deprives government of unrealized revenues and to the prejudice of Globe Telecom, where unbilled international calls were being charged and rerouted as mere local calls,” Sosa said.

Authorities confiscated computers, network hubs, GSM Modems, and bundles of unused SIM cards of Globe and Touch Mobile that were used to hack into Globe’s networks.

Two vehicles—a black Hyundai Tucson and silver Toyota Camry have also been confiscated by authorities in the raids.

The separate raids were conducted in Tower A, Renaissance 3000 building, Meralco Avenue, Ortigas, Pasig City, Pearl of the Orient Tower, Roxas Boulevard, Ermita, Manila, North Tower, Lee Garden Condominium, Laurel St. Mandaluyong City, and Royal Plaza, Twin Towers, Malate, Manila

Pagdilao said that “the arrests of Korean and Filipino suspects demonstrate the need for a tougher law to deal with new challenges in the fight against cybercrime.”

Last week, CIDG anti-fraud operatives have arrested Hak Mo Kim in Mandaluyong City for hacking into SMART Communications networks.

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  • http://www.facebook.com/freediets Katy Kremlin

    I’m so cynical about these raids. The only reason why they get published like this is that they didn’t pay the CIDG enough to keep quiet. Since these government agencies are ignorant of the technology behind it, they just call it illegal and do raids. Why did they have to get the vehicles that had nothing to do with the hack? Because they plan to use it and keep it that’s why!

  • srss sss

    to Globe and the Government- f**k off! your greed has become too obvious now. this technology will save hundreds and thousands of pesos for the ordinary people and even tourists! there will be more to come for sure… 

  • renedr

    As far as I know, there is no law prohibiting ISR in the Philippines. The “Access Devices Regulation Act” cited was passed to regulate access to electronic financial transaction like credit card terminals. Prosecution of ISR under this law is a stretch, so most likely the Koreans will go scott-free as long as they have a good lawyer. (They are probably out on bail by now, or perhaps the case has been dismissed by now.) The major loss to the Koreans is the loss of their equipment and business.

    The most common crime of the ISR operators is Tax evasion since ISR has created tens of billions of pesos of unreported profits over the past twelve years. The telcos are allowed to cut the service of the ISR’s because it violates their terms of service, not because it is illegal. The ISRs just find ways to evade detection by the telcos. It is a cat and mouse game.

    What is more likely an illegal act, is the possible collusion that the telcos do to maintain the high international termination rates. The regulator is powerless to enact any revised tariffs that will benefit the phone using public, even though it is well within the mandate of the NTC to do this in light of the existing law “RA7925″, and in consideration of huge profits that the major telcos currently enjoy.

  • http://pulse.yahoo.com/_VYOIJWB3T5AQZVG4JRRQHCU2BI John

    This is not HACKING they use new technolgy called VOIP ( Voice Over Internet Protocol) they did not hack any Globe facilites it is just like using Yahoo Mesenger voice call so all YM users should be also charged with HACKING.

    They have Globe SIM card and it is paid not hacked, as technology improves all things are possible now. So this is not a hacking issue.

    • http://profile.yahoo.com/YTUHKP7IHDRLW5N4R4POMXYEYY Alexander

      Sabihin na natin wrong choice of word and reporter o yung police and tama dyan ay Toll by Pass. Napakasimple lang yan. Meron tayo expressway lahat ng gusto dumaan magbayad kung ayaw mo duon ka sa libre. Ang ginamit ng mga Koreano dumaan sa expressway na ayaw magbayad, yun and illegal…

      • http://pulse.yahoo.com/_VYOIJWB3T5AQZVG4JRRQHCU2BI John

         We can not compare this TECHNOLOGY to an expressway, that is the trend now I
        tell you based on our experience as OFW most of my colleague they have local
        telephone numbers from there country of origin and use it where they are
        working.They call home or somebody call them only local number not long distance
        they just use the INTERNET technology so big savings.

        The only problem is that we are being blinded by this monopolistic companies
        that govt lost money due to Hacking. This is completely FALSE only PLDT, SMART,
        GLOBE are making money not the govt as you know they manipulate the total income
        from this services and the final income is ZERO so what losses they are talking
        about for the govt?

        As new technology advances expect that some companies will loose the business
        they are operating, ( ex.RCPI , PT&T telegram )

        Cheers

  • http://manilafoodistas.blogspot.com/ Manila Foodistas

    Wait, I don’t understand why the cars were confiscated. Anyone?

    • http://profile.yahoo.com/RDDM5UQ45HLPPKM66KYEBCMTCE dave

      Could be part of their surveillance…

      • http://profile.yahoo.com/HBX5ADASRZU4SKUFDCRCFDMS44 el capitan

        is it that the house or apartment they used are part of their crime too? and must be confiscated too! LOLs

  • http://pulse.yahoo.com/_WZDHKMPRLAQQHTFCOGIKUK6L6U Sean

    “ISR is an illegal act in the country because it deprives government of unrealized revenues and to the prejudice of Globe Telecom, where unbilled international calls were being charged and rerouted as mere local calls,” Sosa said
    How can you deprive someone of something unrealized?

    • kismaytami

      Ganyan kalupit ang PH government, kada galaw ng tao sa Pilipinas may TAX.

      • efriend

        Apparently, you haven’t lived in the U.S.

      • kismaytami

        Apparently, you haven’t been taxed in PH.

  • renedr

    The reason ISR operators still exist in the Philippines is because the Philippines has one of the highest international termination rates in the world. 

    ISR is not hacking, it simply means someone is routing an international call to a local number, usually a cell number y bypassing the international phone circuits of the phone company by using the international internet connections also owned by the phone companies. No major security hacking skills are required. The practice of ISR is legal in many countries like the USA by obtaining the necessary licenses.

    Today, you can call phones in most countries in the world via Internet calling services like Skype from USD0.02/min to USD0.10/min. But it costs USD0.25/min to use Skype call the Philippines. This is because Skype is owned by Microsoft so it does not use ISR’s and must pay the hefty phone termination rates into the Philippines.

    Other international voice operators willing to take risks because of the huge disparity in termination rates and cellular phone rates completely bypass the Phone company’s international termination and directly connect to Filipino phone users using Internet connections and GSM modems to connect to the destination cell phones of ordinary Filipinos. The ISR operators use the Internet to connect a call from a cell phone in say, Saudi Arabia to a cellphone owned by the ISR operator in Manila and then the ISR’s cellphone automatically locally dials the destination cell phone.

    This is the reason why most international calls going to the Philippines today have local cellphone numbers for caller ids.

    Almost ten years ago, the regulator forced the phone companies to reduce their termination rates to reasonable figures of around USD0.08/min. This almost completely killed the ISR business in the Philippines because there is no reason to risk providing an ISR service if there are no large profits to be made. But then the phone companies were able to raise their termination rates once again to as high as USD0.16/min and so ISR operators are happily back in service. I don’t know any other country in the world were termination rates have gone up like in the Philippines.

    In the end, it is the Filipino OFW who buys low cost phonecards who becomes the client of the ISR operators because they pay a lot less for these phonecards than by using phones that will connect to the Philippine telcos. By the way, many legitimate phone companies in many countries abroad also use the Philippine ISR operators because there are no laws in the other countries that prevent them from using the ISR operators. These foreign telcos also prefer the lower rates of the ISR’s. (They don’t care about the quality of the calls going to the Philippines! After all most of these calls are being done by lowly OFW’s.)

    Another consequence of the shift in traffic to the ISR’s is that since so much traffic is now coming via ISR’s the quality of international calling to the Philippines is probably one of the worst in the world.If the phone companies lower their international termination rates, ISR’s will disappear, the incoming international phone quality will improve and millions of FIlipino OFW’s will be a little bit happier to toil abroad….

    • DarkSideOfTheMoon2

      nice….good info,, ty.

  • kwangkwang

    ung mga unlimited free internet naman hulihin nyo. naglipana na. hehe

  • marcos_hitler_diktador_tuta

    Hack their heads off so they will not hack no more.

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