Businessmirror august 19, 2017

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FPI-FIGHT IT STUDY SHOWS AT LEAST P900B WORTH OF GOODS SMUGGLED INTO PHL FROM 2011 TO 2015

‘Illicit trade is crime against humanity’

I

By Rosabell C. Toledo | Correspondent

n a span of five years, illicit traders were able to smuggle at least P904.6 billion worth of goods into the country, a multi-industry study by the Fight Illicit Trade (Fight IT) Movement revealed. The total amount of smuggled goods that successfully entered the Philippines from 2011 to 2015 is pegged by the study at a much higher value, as the P900-billion figure only covers eight industries with so-called frequently smuggled products: petroleum, steel, resins, wood, cigarettes, sugar, palm oil and automotive batteries. Fight IT, a movement launched in 2015 under the Federation of Philippine Industries (FPI), commissioned the study, which was conducted by the University of Asia & the Pacific (UA&P). Fight IT presented the results of the illicit-trade research to officials of the Department of Finance during FPI’s 25th Silver Anniversary Assembly at a hotel in Manila on Friday. The study identified massive gaps in the Bureau of Customs’s (BOC) fulfillment of mandate, with alarming government revenue losses due to illicit trade bared. For instance, the economic impact

of illicit trade on the country’s GDP from 2011 to 2015 was valued at P495.5 billion. Furthermore, the decrease in domestic production or gross output was estimated at P1.1 trillion, while the number of displaced workers due to smuggling was at 291,070. FPI and Fight IT Chairman Jesus L. Arranza expressed dismay over these “worsening” figures, citing that the prevalence of smuggling “deprives the government of rightful revenue that could be used for projects relating to poverty reduction and infrastracture development, among others.” “Illicit trade cuts across all industries—from agricultural products to heavy industries. It is a crime against the economy and humanity that calls for a zero-tolerance approach from all of us. It is a serious economic problem that robs the government of billions of pesos in revenues, harms consumers and undercuts Continued on A2

Federation of Philippine Industries (FPI) Chairman Jesus L. Arranza (fourth from left) hands over the study on the MultiIllicit Trade Sector Facility to Finance Assistant Secretary Mark Dennis Y. Joven (third from left) during the group’s general membership meeting on Friday. Witnessing the event are Dr. Rolando T. Dy, executive director of the Center for Food and Agri-Business of the University of Asia and the Pacific, and Project leader and FPI President George S. Chua. NONIE REYES

Slow Internet speed helping PHL fend off cyber felons

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By Roderick L. Abad | Contributor

strategy of targeting newly discovered vulnerabilities with massive, global attacks and increasingly malicious payloads. This is just being the tip of the iceberg and potentially the start of a new wave of attacks we are in for in the future in the form of ransomworms,” the regional director said.

F there’s one benefit from slow speed of Internet in the Philippines, it could be that the country is less vulnerable to cyber attacks, according to a network security provider’s top executive. “For the last two quarters, there have been reports about the various online threats, especially some of the kinds of ransomware that are happening right now in the Philippines,” said Jeff Castillo, Fortinet regional director for Southeast Asia and Hong Kong. He cited the spread of WannaCry, which reportedly hit a couple dozen of companies here, and Petya recently. WannaCry pioneered a new sort of ransomware/worm hybrid, something Fortinet calls a ransomworm, released by a hacker group known as the Shadow Brokers. Petya, on the other hand, uses the same worm-based approach of WannaCry, even targeting the exact same vulnerability, but with a much

PESO exchange rates n US 51.3010

Nuvolanevicata | Dreamstime

Fortinet Senior Pre-Sales Consultant for Southeast Asia and Hong Kong Nap Castillo, warned, though, that local companies and even the general public should not be complacent about this, as the country remains a target of cyber criminals. “Nobody is exempted from this,” he told the BusinessMirror at the sidelines of the company’s recent news briefing in Makati City. Unlike in the previous years, the new digital economy means organizations rely on data as both a critical resource and an essential source of revenue. Given this, cyber felons have upped the stakes once again with the new high-profile attacks that are more sophisticated than ever.

New breeds of ransomware in PHL

more potent payload that can wipe data off a system, and even modify a device’s Master Boot Record, rendering the device unusable. These types of ransomware,

nevertheless, were quickly curbed unlike the worms of the past that launched massive attacks, some of which affected exponentially more devices and organizations than

this latest round of threats. “I believe that the WannaCry and Petya attacks were simply shots across the bow. They are part of an insidious new opportunistic

CITING the latest data from FortiGuard labs, Nap Castillo bared that the incidence of WannaCry in the domestic market is more than that of Petya. “But compared to other countries, we have actually very minimal number of cases,” he stressed, citing that WannaCry has infected around 230,000 computer systems from over 150 nations worldwide. Japan has recorded the highest rate of infection at 67 percent, followed by Taiwan and Mexico at 7 percent each. Both India and Finland registered 4 percent, while Hong Kong, Peru and Thailand posted 3 percent. China and Uruguay recorded only 1 percent. Contrary to a couple of thousands Continued on A2

n japan 0.4682 n UK 66.0449 n HK 6.5576 n CHINA 7.6872 n singapore 37.5474 n australia 40.4457 n EU 60.1504 n SAUDI arabia 13.6799

Source: BSP (18 August 2017 )


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