The Criminal Investigation and Detection Group (CIDG) Anti-Fraud and Commercial Crime Division (AFCCD) announced last Sunday, July 22, that it has arrested two individuals for allegedly hacking the International Gateway Facilities (IGF) of SMART Communications.

CIDG Police Director Samuel D. Pagdilao Jr. identified the suspects as Korean national Hak Mo Kim, alias Sam Kim, and his Filipino business partner Arturo Lumagod, both from Mandaluyong City.

They were arrested following a complaint from SMART Communications that tagged the suspects in the hacking of SMART Telecom IGF through the use of International Simple Resale (ISR). Using ISR is considered an illegal activity in the country because it steals the income of a telecom company from international calls via IGF.

This was done through the use of a Sim Box that diverts incoming international calls by bypassing the IGF franchise of SMART, which turns an international call into a local call. This activity has denied the telecom company legitimate income from assisting international calls via IGF.

As told to AFCCD Police Superintendent Benjamin Acorda Jr. by Engr. Henry Sumallo Jr. of SMART Communications, the telecom company has already suffered a revenue loss of P5.3 million since the hacking activity was only discovered last May 2012.

Following a test call that proved the illegal activity, AFCCD and SMART Communications representatives confiscated the Sim Box from Lumagod and Kim, who were charged with theft, violation of Access Devices Regulation Act, and violation of E-Commerce Law, which are all bailable offenses.