6 November 2008
Lagos — Concerns about the incessant cases of electronic fraud vis-à-vis Automatic Teller Machines (ATM) cards and other electronic devices have compelled the Senate to initiate a bill aimed at curbing the menace. Omololu Ogunmade looks at the content of the bill and the severe punishment it spells for culprits
When the bill to forestall all acts of electoral fraud that is currently before the Senate is eventually passed into law, the security of all electronic fraudsters in the country, will no longer be guaranteed.
Tagged "A Bill for an Act To Provide for the Prohibition Of Electronic Fraud in All Electronic Transactions in Nigeria and for Other Related Matters," the bill has largely been applauded in the business world and as well celebrated in the media.
Only last week, the bill scaled the second reading on the floor of the Senate, where its contents were thoroughly digested and its provisions well spelt out. The bill received the nod of majority of the senators, during its second reading last Wednesday. It has consequently been committed to the committee stage for onward processing into law.
The bill contains 47 sections, but states that its application is not necessarily limited to only such areas. The highpoints of the bill include the prohibition of electronic fraud, which outlaws all acts of electronic fraud either by way of authorized access that is misused or unauthorized access to computer that results in fraud.
It also spells out a stiff penalty against any manipulation of electronic mails vide wilful misdirection, distortion, re-routing or hiding etcetera, of mails and damage to computer for fraudulent purposes and as well rejects unauthorized issuance of money transfer in financial institutions and other related areas.
In the same vein, the bill seeks to punish cases of theft, by electronic means, of financial instruments such as credit and debit cards, smart cards, automated teller machines, point of sale machines et cet era.
The bill makes strong recommendations against trafficking in various computer access devices, causing computer damage through phishing, spamming and spreading of computer virus, insisting that stealing of terminal equipment such as laptops, desktops, GSM handsets and other communication gadgets amongst other electronic tools would be severely punished.
The punishment prescribed in the bill against various offences stipulated therein, ranges from payment of various fines to imprisonment of between six months and 14 years, depending on the nature of the offence. The senators agreed that since GSM phones can be used to perpetrate electronic fraud, any theft of GSM phones, when the bill is passed, would be a criminal offence that could attract six months imprisonment or a fine of N100,000 or both.
The bill further stipulates that when such a phone is used to commit electronic fraud, the culprit could be sentenced to five years imprisonment adding that the bill covers significant grounds of electronic fraud. "This is however not exhaustive and it is anticipated that as the society becomes more sophisticated and new inventions come into play and we need to tackle the activities of fraudsters, it is expected that this bill would be amended as the need arises," says the bill.
In spelling out punishment for culprits of electronic fraudsters, the bill stipulates that from the commencement of this Act, no person or body corporate shall without authorization, access a computer and other electronic devices or in case of authorisation, exceed authorised access to computers and or communication devices; use counterfeit access devices; use unauthorised access devices or possess any device designed to manipulate credit or ATM card.
It also provides that no one shall damage a government computer with the intention to defraud, access computer or electronic device to commit espionage, traffic in pass words for public, private and or financial institutions computer or relevant electronic devices, traffic in any password or similar information through which a computer may be accessed without authorization, with any intention to defraud, copy financial institutions' website, e-mail customers with the intention to defraud customers and financial institutions and intentionally create computer worms to destroy government computer.
Punishment prescribed by the bill are stiff and legion. First, it stipulates that anybody who contravenes any of the sub-sections above shall be guilty of an offence punishable with a sentence of seven years imprisonment or a fine of N5 million or both.
It also provides that where two or more persons conspire to commit any of the offences created under this law and one or more of such persons do any act to effect the conspiracy, each shall be guilty of the offence and shall be sentenced to three years imprisonment or fined N2 million or both adding that if the offence is committed for the purposes of commercial advantage, malicious destruction or damage for private commercial gain or in furtherance of criminal tortuous act in contravention of the law or other laws of the Federal Republic of Nigeria, the offender shall be liable to pay a fine of N5 million or seven years imprisonment or both.
Other provisions state that: "Whoever intentionally accesses a computer or electronic device without authorisation or exceeds authorised access and thereby obtains information contained in a financial database of a financial institution or a card issuer or contained in a file of a customer and or consumer or information from any electronic device for any advantageous reasons without due authorization from the administrator or owner of such a device, or information from any department, ministry or agency of the government or obtain information from any classified computer of government shall be guilty of an offence and upon conviction shall be liable to a fine of N5 million or imprisonment for five years or both."
The bill further recommends that from the commencement of the law, all operators of a cybercafé shall register as business concerns with the local government authority in addition to a business name registration with the Corporate Affairs Commission (CAC), insisting that Cybercafés shall maintain a register of users through a sign-in register which shall be available to law enforcement personnel whenever it is needed.
It also stipulates that: "Any person who perpetrates electronic fraud or online fraud using a cybercafé, shall be guilty of a felony and shall be sentenced to three years imprisonment or a fine of N1 million or both."
In the event of proven connivance by owners of the cybercafé, it states that such owners shall be guilty of a felony and shall be liable to a fine of N2 million or a two-year jail term or both adding that the burden of proof in section three above shall be on the prosecutor.
Besides, it prescribes that anyone who intentionally accesses a computer without authorisation and as a result of such conduct, recklessly causes damage to the computer shall be guilty of a felony and is liable to payment of a fine of N5 million or seven years imprisonment or both adding that any person or organisation who unlawfully stops messages with the intention to commit any act for the purpose of fraudulently benefiting directly or indirectly through his act of commission or omission will be guilty of a felony and is liable to imprisonment for seven years in the first instance and imprisonment for 14 years for second offenders
The bill was sponsored by the Chairman, Senate Committee on Privatization, Senator Ayo Arise, who represents Ekiti North senatorial district. While presenting the bill for a second reading last Wednesday, Arise enumerates the immense benefits of electronic transactions across the globe as well as the threats that activities of fraudsters pose to beneficiaries.
"Mr. President, distinguished colleagues, I am honoured to stand before you to present the lead debate on the Electronic Fraud Bill 2008. Never in the history of mankind have we been more confounded by the comfort offered by information communication technology and the associated risks it presents to us individually, to our nation as a corporate entity and to the entire world.
Read comments. Write your own.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
We are not impressed with your double standards - reprieve for Elite Rouges (a la Andoaakaa's Ruse of Law) and Sharia Law of arm-chopping and stoning-to-death for the poor who dares steal a loaf of bread out of sheer desperation to feed their families and extreme poverty in the land. Before we take this Senate seriously, members should start by exposing the 419 king-pins hiding & calling themselves honorables instead of been in jail where they belong - how can we trust your proposed legislation when some of your members are the kings of electronic fraud.