Cyber Crimes Laws (Pakistan)

Contents

1. Cyber Crimes
2. Cyber Stalking
3. National Cyber security
4. Cyber Secure Women
5. Cyber Crime Laws in Pakistan
6. Chronological Developments in Cyberspace Law
7. Electronic Evidence in Cyberspace Law
8. e-Banking in Pakistan
9. Email
10. WWW
11. Jurisdiction in Cyberspace law
12. Social Media
13. E-Commerce
14. E-signatures
15. E-money in Cyber World
16. Cyber etiquettes
17. Cyber Defamation
18. Important Case Laws
Note. On the request of Lahore High Court Bar Association’ Lahore this booklet of cyber crimes
laws in Pakistan has been prepared by S J Tubrazy Advocate for candidates who want to appear
in ASJ Exams.

Part. 1

Cyber Crimes

Techterms Defines

Cybercrime is criminal activity done using computers and the Internet.

Britannica defines

Cybercrime also called computer crime, the use of a computer as an instrument to further illegal
ends, such as committing fraud, trafficking in child pornography and intellectual property,
stealing identities, or violating privacy.

S j Tubrazy

Cybercrime is criminal action of commission or omission with intent to harm targeting humans
or machines using any telecommunication device via internet online or offline.

Cybercrime refer an action amounting to crime which involves a computer and a connected
network. The computer may have been involved in the commission of a crime, or it may be the
target. Such crimes calls internet crimes and may be threaten a nation social security and
financial strength. Nature of these crimes has become conspicuous, particularly those contiguous
hacking, phishing, credit card frauds, online bank robbery, illegal downloading, online industrial
espionage, cracking, online copyright infringement, violation of privacy, child pornography and
cyber terrorism and so on. There are also issues of privacy when private information is lost or
intercepted, lawfully or else.

State or non-state actors all over the world are involve in violation of laws dealing with
cyberspace like including breach of online personal privacy, criminal online interception and
online espionage, online financial theft, and other trans-border cybercrimes. Committing
cybercrime by a nation state against other nation state is occasionally referred to as cyber
warfare.

Using computer as cybercrime tool and target

In fact these are the conventional crimes which have existed earlier for spans of time in offline.
Fraud, scams, theft, and the likes have existed even before the growth in high-tech tools. The
same criminal has simply been given an advance instrument which raises his potential inlet of
victims and makes him all the harder to trace and catch. These are new index of crimes, having
been in life for only as long as computer systems have, which asserts how non- intelligible and
unpremeditated social infrastructure would fight these crimes. There are numerous crimes of this
type committed in cyberspace daily.

Cyber Financial Crimes

In the cyberspace world criminals go forward to stealing and robbing. They steals bank’s details
and siphon off money; misuse the credit card to make numerous purchases online; run a scam to
get naïve people to part with their hard earned money; use malicious software to gain access to
an organization’s website or disrupt the systems of the organization. The malicious software can
also damage software and hardware, just like vandals damage property in the offline world.
Surprisingly according to a survey, more than 40% of financial sector said they had been victims
of cyber- crime, compared with only 19 % in other industries.

Indecent online material

The all over the world impliedly agreed to have definite restraints of hosting and publishing
explicit contents on websites without violating the norms of free speech and healthy research
propensity. In most instances publishing and exchange of explicit communications online
considered illegal.

Various countries have place restrictions on certain speech and ban racist, blasphemous,
politically subversive, libelous or slanderous, seditious, or provocative material that tends to
inflame hate crimes committing online. Child soliciting and Abuse is also a type of cybercrime
wherein criminals solicit minors via chat rooms for the purpose of child pornography. The FBI
has been spending a lot of time monitoring chat rooms frequented by children with the hopes of
reducing and preventing child abuse and soliciting.

Part. 2

Cyber Stalking

S J Tubrazy defines cyber stalking ‘Cyber stalking is harassment or threat to a victim using
digital communication’ (urban dictionary)

In exact meanings it is online threat and harassment wherein the object is subjected to a
bombardment of online messages, emails and SMSs.

Harassment as defined in the U.S. computer statutes is clearly dissimilar from cyberbullying, is
usually relates to a person's "use a computer or computer network to communicate obscene,
vulgar, profane, lewd, lascivious, or indecent language, or make any suggestion or proposal of an
obscene nature, or threaten any illegal or immoral act,."
To constitute the offence of cyber stalking certain common elements must be prove before the
court, among these elements are the following:

Means—electronic transmission of information or communication by the use of a computer or

other electronic means

Specific person—sent to a person identified by a unique address and received by that person

Intent—to coerce, intimidate, or harass the person

Transmission—obscene, vulgar, profane, lewd, lascivious, indecent language, or any suggestion

or proposal of an obscene nature, or threaten any illegal or immoral act

In the case of United States v. Neil Scott Kramer the accused used an electronic device for crime
of cyber stalking, the accused argued that this claim was insufficient because his charge included
persuading through a computer device and his cellular phone technically is not a computer.
Although Kramer tried to argue this point, U.S. Sentencing Guidelines Manual states that th term
computer "means an electronic, magnetic, optical, electrochemical, or other high speed data
processing device performing logical, arithmetic, or storage functions, and includes any data
storage facility or communications facility directly related to or operating in conjunction with
such device."

In a case in India accused Manish Kathuria was arrested by the New Delhi Police for stalking an
Indian lady Ms Ritu Kohli by illegally chatting on the MIRC using her name. He used indecent
and abhorrent language and distributed her residence telephone number, inviting people to chat
with her on the phone. As a result of which, Ritu kept getting obscene calls from everywhere. In
a state of shock, she called the Delhi police and reported the matter.

In June 2000, a man was arrested by the Delhi police for assuming identify of his ex-employer’s
wife in a chat channel an encouraging others to telephone net. The victim who was getting
obscene telephone calls at night from stranger made a complaint to the police. The accused was
then located “on line” in the chat room under the identity of the, victim and later traced through
the telephone number used by him to access the internet.

Part. 3

National Cyber security

Techtarget Defines Cybersecurity

Cybersecurity is the body of technologies, processes and practices designed to protect networks,
computers, programs and data from attack, damage or unauthorized access.
S J Tubrazy Defines Cybersecurity

Cybersecurity is system of computer technology that protects and integrates global

interconnected information technology systems.

There is no unanimously accepted explicit definition of what constitutes ‘national cyber security.
It is commonly employed by government spokespersons without ever being defined. NCS has
two obvious roots: the term ‘cyber security’ and the term ‘national security’ – both of which are
often differently defined in official national documents. Even if the term ‘national cyber security’
is seldom explicitly defined, it is possible to derive a working definition based on the respective
use of the other two terms.

There are specifically two main genus of cyber security, system cyber security and data cyber
security, while experts counts, generally, three sorts of cyber securities national, financial and
personal cyber security.

Personnel security is a system of policies and procedures which seek to manage the risk of staff
(permanent, temporary or contract staff) exploiting, or intending to exploit, their legitimate
access to an organization’s assets or premises for unauthorized purposes.

Whereas computer system cyber security referred to as information technology security, focuses
on protecting computers, networks, programs and data from unintended or unauthorized access,
change or destruction.

Financial institutions are increasingly dependent on information technology and

telecommunications to deliver services to consumers and business every day. Disruption,
degradation, or unauthorized alteration of information and systems that support these services
can affect operations, institutions, and their core processes, and undermine confidence in the
nation's financial services sector.

The number of computer attacks has increased exponentially in the past few years and their
severity and sophistication are also growing. For example, when the Slammer/Sapphire Worm
started spreading throughout the Internet in early 2003, it doubled in size every 8.5 seconds and
infected at least 75,000 hosts. It caused network outages anԁ unexpected consequences such as
cancelled airline flights, interference with elections, anԁ ATM failures. The conventional
approach to securing computer systems is to design mechanisms such as firewalls, authentication
tools, and virtual private networks that make a protective shield. But, these mechanisms nearly
always have vulnerabilities. They can’t ward off attacks that are continually being adapted to
exploit system weaknesses, which are often caused by careless design and implementation flaws.
This has made the need for intrusion detection, security technology that complements
conventional security approaches by monitoring systems and identifying computer attacks.
Traditional intrusion detection methods are based on human experts’ extensive knowledge of
attack signatures. They have several limitations. They can’t detect novel attacks, because
someone must manually revise the signature database beforehand for each new type of intrusion
learned. Anԁ once someone discovers a new attack and develops its signature, deploying that
signature is often delayed. These limitations have led to an increasing interest in intrusion
detection techniques based on data mining.

The term ‘national security’ has been used in Canada since the 1970s, the first official
incorporation of a national security strategy did not occur until 2004. However, as set out in its
National Security Strategy, threats that ‘dent the security of the state of society, generally require
a national response, as they are beyond the capacity of individuals, communities or provinces to
address alone. In context with Canada’s cyber security strategy, this implies ‘a shared
responsibility, one in which Canadians, their governments, the private sector and our
international partners all have a responsibility to participate.

In Germany, the term ‘Sicherheitspolitik’ was considered to be sufficiently equivalent to the

English term ‘national security’. But in recent years the term ‘national security’ has taken root in
German policy and political discourse, perhaps in an effort to draw attention to the increased
blurring of national and international risks requiring an increased ‘national’ cooperation. As part
of these efforts, the term ‘cyber security’ might be considered directly analogous to ‘national
cyber security’, in that it is also directly tied with a single specific program, the national
protection plan for the critical information infrastructure.

The British National Cyber Strategy is a comprehensive document that goes beyond national
security issues. Although the ‘national security’ component of the Cyber Security Strategy
remains partially classified. Interestingly, the definition of cyber security seems equally
concerned with protecting systems as well as ‘exploiting opportunities’ and encompasses
missions as diverse as internet governance, trade policy, counter-terrorism and intelligence.

The US definition of ‘national security’ is much wider than commonly employed abroad. While
‘securing cyberspace’ is also a particular item within the NSS 2010, the majority of mentions of
‘cyber’ are outside of that particular section, illustrating that the issue is considered to be cross-
vertical and not, in the most narrow sense, a security issue alone. Similarly, the US has avoided
creating a dedicated single overarching national cyber security strategy, instead relying on a
collection of documents to fulfill the same goal.

The aim of this first National Security Strategy is to set out how we will address and manage this
diverse though interconnected set of security challenges and underlying drivers, both
immediately and in the longer term, to safeguard the nation, its citizens, our prosperity and our
way of life.
Part. 4

Cyber Secure Women

Cyber crime is a global phenomenon. With the advent of technology, cyber crime and
victimization of women are on the high and it poses as a major threat to the security of a person
as a whole. Earlier there was not any substantial legislation to safe the woman online in Pakistan,
recent Prevention of Electronic Crimes Act 2016 has enacted which provides significant
provisions to safe woman online and also offers a mechanism to apprehend the criminal who
used information technology as tool for crime. The nature of information technology is as such,
that accessible internationally the said act, gives a detail method for trans-border access as
deterrence against cyber crimes. The said Act has termed certain offences as hacking, publishing
of obscene materials in the net, tampering the data as punishable offences as well. Hence the
grave threat to the security of women in general is properly covered by this Act.

Cyber-Crimes of three Major Categories:

1. Cyber-crimes against persons mostly (women)

2. property
3. Government.
First category of cyber-harassment is a distinct Cybercrime. Different kinds of harassment can
and do arise in cyberspace, or through the use of cyberspace technology. Harassment can be
sexual, racial, religious, or other. Persons perpetuating such harassment are also guilty of
cybercrimes. Cyber-harassment as a crime also brings us to a further related area of violation of
privacy of citizens. Violation of privacy of online citizens is a Cybercrime of a momentous
nature. No one likes any other person invading the invaluable and extremely sensitive area of his
or her own privacy which the medium of internet grants to the citizen.
The second category of Cyber-crimes is that of Cybercrimes against all forms of property. These
crimes include computer sabotage (destruction of others' property), transmission of harmful
programmes.
The third category of cyber-crimes relate to Cybercrimes against Government. Cyber terrorism,
extremism and hate speech are distinct kinds of crimes in this category. The growth of internet
has shown that the medium of Cyberspace is being used by individuals and groups to threaten the
international governments as also to terrorize the citizens of a country. This crime manifests itself
into terrorism when an individual "cracks" into a government or military set up website.
Types of Cyber-Crimes against Women:

Amongst the various cyber-crimes committed against individuals and society at large, crimes
that are specifically targeting women are as follows: –
1. What is Cyber Stalking ? Cyberstalking is the use of the Internet or other electronic means to
stalk or harass an individual. It may include false accusations, monitoring, identity theft,
threats, objectionable solicitation
2. Identity steal. Identity theft is a crime in which a fraudster obtains key pieces of personal
information, such as Social Security or driver's license numbers, in order to imitate someone
else. The information can be used to obtain credit, merchandise, and services in the name of
the victim, or to provide the thief with false credentials. An imposter might provide false
identification to police, creating a criminal record or leaving outstanding arrest warrants for
the person whose identity has been stolen.
3. Harassment via e-mails. Email harassment is usually understood to be a form of stalking in
which one or more people send consistent, unwanted, and often threatening electronic
messages to someone else. There isn’t always an exact definition of what an message has to
look or sound like in order to be harassing. It’s usually a matter of circumstance, since what
one person finds offensive or harmful may not actually come off that way to someone else.
4. Cyber Bullying. Cyberbullying is any kind of bullying or harassment done using technology.
It really sucks because it can be public, hard to take down, or affect you at home. There are a
lot of things it could be, and it can affect people in a lot of different ways.
5. Morphing or super imposing. Morphing is a special effect in motion pictures and animations
that changes (or morphs) one image or shape into another through a seamless transition. Most
often it is used to depict one person turning into another through technological means or as
part of a fantasy or surreal sequence.
6. Email spoofing. Email spoofing is the forgery of an email header so that the message appears
to have originated from someone or somewhere other than the actual source. Email spoofing
is a tactic used in phishing and spam campaigns because people are more likely to open an
email when they think it has been sent by a legitimate source.
7. Cyber Defamation. (1) Any wrongful act or publication or circulation of a false statement or
representation made orally or in written or visual form which injures the reputation of a
person, tends to lower him in the estimation of others or tends to reduce him to ridicule,
unjust criticism, dislike, contempt or hatred shall be actionable as defamation.
(2) Defamation is of two forms, namely:–
(i) Slander; and
(ii) Libel.
(3) Any false oral statement or representation that amounts to defamation shall be
actionable as slander.
(4) Any false written, documentary or visual statement or representation made either by
ordinary form or expression or by electronic or other modern means of devices that amounts
to defamation shall be actionable as libel.

While Cyber Stalking targets, especially of age group of 16-35, who are stalked by men. It is
believed that Over 75% of the victims are female. More than one million women are stalked
annually in the United States.
Cases Study:

1. Arifa Naz Facebook Case:

Offender has posted obscene pictures on social media ‘facebook’ of his ex-wife from abroad
Saudi Arabia --- Interpol arrested on the request of Pakistani Agency FIA and docks back to
Pakistan —dawn news dated 9-7-2016.

2. Personal pictures delivered without permission:

Offender delivered personal pictures on facebook-- uploading her personal pictures on internet
without her permission. 2016 PCrLJ 1916 LAHORE

3. Fake facebook profile:

Allegation against the accused was that he created and operated fake facebook profile in the
name of complainant and uploaded her picture without her consent. 2017 PLD 10 PESHAWAR

4. TV actress Case:

Famous TV and film actress facebook account has been hacked and her personal pictures were
stolen – she was black mailed and harassed – application of FIR file in FIA – further on request
and apology of accused case was withdraw.

5. Female vs female Case.

In this case personal picture of student girl was posted on facebook being superimpose ---
application of FIR was launched – investigation held – cousin girl of victim was offender in this
case.

6. Data misused through used mobile.

Complainant girl filed application for FIR in FIA for registering cyber crime case as her personal
video and images was posted on social media without her permission—when inquiry was held –
offender arrested he exposed that he purchased used mobile and he found data stored in that
mobile, which he posted in the social media.
 7. Muhammad Faheem Vs State, LHC

Complainant girl report to FIA for her fake Facebook account created by accused, accused
threatened and blackmailed the complainant girl—there is also exchange of filthy language
between the complainant girl and accused. Lahore High Court decline the bail petition of
accused and called the offence was very serious in nature, no concession can be given to
accused. Court also appreciate the step of complainant girls to registered the criminal case
against the accused.

Social Media Security (setting and privacy):

Facebook Security Check-up:

Measures to be safe online for woman

1. Be password smart: The #1 tip when it comes to protecting yourself online is to be smart
when choosing passwords. Use upper class and lower class words
 2. Don’t share sensitive information via email: Email is a very useful way of
communicating, but also a handy tool for cyber criminals. Protect yourself from potential
social engineering and phishing scams by never sharing sensitive information through an
email.
3. Sign up for login notifications: For websites and apps you frequently use and login to,
sign up for “login notifications” or “remote login notifications.” If anyone logs into your
account for any reason, you will receive an email or text notification.
4. Access your accounts only from secure locations: It’s tempting to use the free Wi-Fi at
your local coffee shop to check your email or pay a few bills. While using free Wi-Fi may
be okay for simple tasks, like reading the news or playing a game of Candy Crush, you’ll
want to avoid logging into any of your secure accounts on a public network connection,
like an online banking account or your primary email account.
5. Make sure your anti-virus and anti-malware programs are updated on a regular basis.
6. Guard your computer: Be cautious about who you let use your device, and don’t leave an
unlocked computer sitting around for just anyone to use
7. Secure your social media accounts: Spend a little time becoming familiar with the
security features of Facebook, Twitter, Instagram, and other popular social media sites
and apps.

Offline safety measures:

i. Don’t sell your mobile without formatting.

ii. Don’t sell your laptop without formatting.
iii. Don’t keep you pics in mobile, if lost instant report your MNO, PTA, and police.
iv. If you chose to get second hand mobile device reset its factory setting.
v. Maximum care you email IDs, don’t spread it to unknown persons
vi. Avoid to be photographed except close relatives

Maximum Care on social media:

1. Don't Use Your Real First or Middle Name: Facebook's policy forbids fake names but
does allow for nicknames as your first or middle name. Don't use your full legal name
because doing so could help predators and identity thieves obtain more information about
you.
2. Don't Post any Contact Information on Your Proile Don't make your personal e-mail or
your cellphone number viewable on your proile. If you do post this info it's possible
that a rogue Facebook application or hacker could use this information to SPAM or
torment you.

3. Report Any Abusive Postings or Harassment If you ever feel threatened by anyone on
Facebook or someone is harassing you by sending unwanted Facebook messages or
posting something abusive on your public wall, report it by clicking the "report abuse"
link on the post. If someone posts a picture of you that you don't like, you have the right
and the ability to 'un-tag' yourself.
 4. Don’t play online games on social media that may lost your identity.
5. Use caution when you click links.
6. Know what you’ve posted about yourself.
7. Don’t trust that a message really is from whom it says it’s from.
8. To avoid giving away email.
9. Addresses of your friends, do not allow social networking services to scan your email
address book.
10. Type the address of your social networking site directly into your browser or use your
personal Bookmarks.
11. Be selective about who you accept as a friend on a social network.
12. Choose your social network carefully.
13. Assume that everything you put on a social networking site is permanent.
14. Be careful about installing extras on your site.
15. Talk to your kids about social networking.

Legal protection in Pakistan:

Earlier section 36 and 37 of ETO 2002 ware deterrence against cyber crimes in Pakistan, later
both aforesaid sections was omitted by PECA 2016.

Electronic Transaction Ordinance 2002

Section 36. Violation of privacy of information.—Any person who gains or attempts to gain
access to any information system with or without intent to acquire the information contained
therein or to gain knowledge of such information, whether or not he is aware of the nature or
contents of such information, when he is not authorised to gain access, as aforesaid, shall be
guilty of an offence under this Ordinance punishable with either description of a term not
exceeding seven years, or fine which may extend to one million rupees, or with both.

37. Damage to information system, etc.—(1) Any person who does or attempts to do any act
with intent to alter, modify, delete, remove, generate, transmit or store any information through
or in any information system knowingly that he is not authorised to do any of the foregoing, shall
be guilty of an offence under this Ordinance.

(2) Any person who does or attempts to do any act with intent to impair the operation of, or
prevent or hinder access to, any information contained in any information system, knowingly
that he is not authorised to do any of the foregoing, shall be guilty of an offence under this
Ordinance.

(3) The offences under sub-section (1) and (2) of this section will be punishable with either
description of a term not exceeding seven years or fine which may extend to one million rupees,
or with both.

Prevention of Electronic Crimes Act 2016

16. Unauthorized use of identity information.-(1) Whoever obtains, sells, possesses, transmits
or uses another person's identity information without authorization shall be punished with
imprisonment for a term which may extend to three years or with line which may extend to five
million rupees, or with both.

20. offences against dignity of a natural person.- (1) Whoever intentionally and publicly
exhibits or displays or transmits any information through any information system, which he
knows to be false, and intimidates or harms the reputation or privacy of a natural person, shall be
punished with imprisonment for a term whrich may extend to three years or with fine which may
extend to one million rupees or with both:

(2). Any aggrieved person or his guardian, where such person is a minor, may apply to the
Authority for removal, destruction of or blocking access to such information

21. Offences against modesty of a natural person and minor.-(1) Whoever intentionally and
publicly exhibits or displays or transmits any information which,-

(a) superimposes a photograph of the face of a natural person over any sexually explicit image or
video; or

(b) includes a photograph or a video of a natural person in sexually explicit conduct; or

(c) intimidates a natural person with any sexual act, or any sexually explicit image or video of a
natural person; or

(d) cultivates, entices or induces a natural person to engage in a sexually explicit act, through an
information system to harm a natural person or his reputation, or to take revenge, or to create
hatred or to blackmail, shall be punished with imprisonment for a term which may extend to five
years or with fine which may extend to five million rupees or with both.

24. Cyber stalking. (l) A person commits the offence of cyber stalking who,
with help of internet –

(a) follow a person or contacts or attempts to contact such person to foster personal interaction
repeatedly despite a clear indication of disinterest by such person;

(b) monitor the use by a person of the internet, electronic mail, text massage or any other form of
electronic communication;

(c) watch or spy upon a person in a manner that results in fear of violence or serious alarm or
distress, in the mind of such person; or

(d) take a photograph or make a video of any person and displays or distributes it without his
consent in a manner that harms a person.
(2) Whoever commits the offence specified in sub-section (l) shall be punished with
imprisonment for a term which may extend to three years or with fine which may extend to one
million rupees or with both:

Provided that if victim of the cyber stalking under sub-section (1) is a

minor the punishment may extend to five years or with fine which may extend
to ten million rupees or with both.

Part. 5

Cyber Crime Laws in Pakistan

Copyright Protection under Copyright Ordinance 1962

Section 66 of the Ordinance, as amended, provides that any person who knowingly infringes or
abets the infringement of the copyright in a work (defined to include computer programmes), or
any other right conferred by the Ordinance shall be punishable with imprisonment which may
extend to 3 years with fine.

Electronic Transaction Ordinance 2002

Preamble -- to recognize and facilitate documents, records, information, communications and

transactions in electronic form, and to provide for the accreditation of certification service
providers. ---

36. Violation of privacy of information.—Any person who gains or attempts to gain access to
any information system with or without intent to acquire the information contained therein or to
gain knowledge of such information, whether or not he is aware of the nature or contents of such
information, when he is not authorized to gain access, as aforesaid, shall be guilty of an offence
under this Ordinance punishable with either description of a term not exceeding seven years, or
fine which may extend to one million rupees, or with both.

37. Damage to information system, etc.—(1) Any person who does or attempts to do any act
with intent to alter, modify, delete, remove, generate, transmit or store any information through
or in any information system knowingly that he is not authorized to do any of the foregoing, shall
be guilty of an offence under this Ordinance.

(2) Any person who does or attempts to do any act with intent to impair the operation of, or
prevent or hinder access to, any information contained in any information system, knowingly
that he is not authorized to do any of the foregoing, shall be guilty of an offence under this
Ordinance.
(3) The offences under sub-section (1) and (2) of this section will be punishable with either
description of a term not exceeding seven years or fine which may extend to one million rupees,
or with both.

38. Offences to be non-bailable, compoundable and cognizable.

Payment System Electronic Funds Transfer Act 2007

Preamble ---- “AN ACT to provide regulatory framework for payment systems and electronic
fund transfers WHEREAS it is necessary to supervise and regulate Payment Systems and
Electronic Fund Transfers in Pakistan and to provide standards for protection of the consumer
and to determine respective rights and liabilities of the financial institutions and other Service
Providers, their consumers and participants;

57. Violations Affecting Electronic Commerce.-Whoever –(1) knowingly, in a transaction

effected by electronic commerce, uses or attempts or conspires to use any counterfeit, fictitious,
altered, forged, lost, stolen, or fraudulently obtained Debit Instrument to obtain money, goods,
services or anything else of value aggregating five thousand rupees or more, or

(2) knowingly receives, conceals, uses or transports money, goods, services or anything else of
value aggregating five thousand rupees or more obtained by use of any counterfeit, fictitious,
altered, forged, lost, stolen, or fraudulently obtained Debit Instrument, or

(3) knowingly receives, conceals, uses, sells, or transports one or more tickets for transportation,
and which have been purchased or obtained with one or more counterfeit, fictitious, altered,
forged, lost, stolen or fraudulently obtained Debit Instrument, shall be punished with
imprisonment of either description for a term which may extend to seven years, or with fine
which may extend to one million rupees, or with both.

Explanation.-For the purpose of this section e-commerce means the activity of buying, selling or
contracting for goods, services and making payments using internet or worldwide web through
communication networks including of wireless networks, within or outside Pakistan.

58. Cheating by Use of Electronic Device.-Whosoever cheats by pretending to be some other

person, or by knowingly substituting one person for another, or representing that he or any other
person is a person other than he or such other person really is, or by cheating by impersonation,
fraudulently or dishonestly uses any credit or debit card, or code or any other means of access to
an Electronic Fund Transfer device, and thereby causes any wrongful gain to himself or any
wrongful loss to any other person, shall be punished with imprisonment of either description for
a term which may extend to seven years, or with fine which shall not be less than the wrongful l
loss caused to any person, or with both.

Sec. 63, Trial, Cognizance shall be taken by the court upon a report of facts made in writing by
police
Synopsis of PSEFTA 2007

•Financial Crimes, means and includes

•i)Violations Affecting Electronic Commerce

•ii)Cheating by Use of Electronic Device / Code

•iii)All fraudulent winner schemes through SMS, E-mail

Anti-Money Laundering Act 2010

The section 2 f; Financial institutions means Ss.(v) ‘issuing and managing means of payments
including but not limited to credit cards and debt cards, cheques, travellers cheques, money
orders, bank drafts and electronic money’.

Section 2 (r) ‘property or assets of any description, whether corporeal or incorporeal, moveable
or immoveable, tangible or intangible, and includes deeds and instruments evidencing title to, or
interest in, such property or assets, including cash and monetary instruments, wherever located

Pakistan Protection Act 2014

Crimes via internet and information technology against state and state owned institutions may be
cybercrimes. The section 2(i) provides a schedule in The Pakistan Protection Act 2014 which sets
the schedule cybercrimes as;

(ix) destruction of or attack on communication and interaction lines, devices, grids, stations, or
systems etc

(xiv) crimes against computers including cybercrimes, internet offenses and other offences
related to information technology etc

Section 16 punishment 20 yrs and confiscate of property

PTA Regulation S.R.O 713 (1)/2009

Sec.3 (d); ‘Fraudulent Communication’ means the transmission of message /statement which is
false and misleading.

S. 3 (e) ‘Obnoxious Communication’ means the transmission of message with the intent to cause
harassment or disturbance.

S. (i) ‘Spamming’ means the transmission of harmful, fraudulent, misleading, illegal or

unsolicited message in bulk to any person without the express permission of the recipient, or
causing any electronic system to show any such message or being involved in falsified online
user account registration or falsified domain name registration for commercial purpose.
Investigation of Fair Trial Act 2013

Preamble; An Act to provide for investigation for collection of evidence by means of modern
techniques and devices---To regulate advance and modern investigative techniques such as
covert surveillance and human intelligence, property interference, wiretapping and
communication interception.

22. Registration of case; The evidence including data, information and material collected or
received pursuant to the warrant shall be examined by the officer authorized by the applicant in
this behalf and if he is satisfied that the same discloses elements of commission, harbouring,
abetting or conspiring or attempting to commit any scheduled offence, he may immediately
cause registration of a report (F.I.R.) under section 154 of the Code of Criminal Procedure,
1898…

Prevention of Electronic Crimes Act 2016

3. Unauthorized access to information system or data.- Whoever with dishonest intention

gains unauthorized access to any information system or data shall be punished with
imprisonment for a term which may extend to three months or with fine which may extend to
fifty thousand rupees or with both.

4. Unauthorized copying or transmission of data.- Whoever with dishonest intention and

without authorization copies or otherwise transmits or causes to be transmitted any data shall be
punished with imprisonment for a term which may extend to six months, or with fine which may
extend to one hundred thousand rupees or with both.

5. Interference with information system or data.- whoever with dishonest intention interferes
with or damages or causes to be interfered with or damages any part or whole of an information
system or data shall be punished with imprisonment which may extend to two years or with line
which may extend to five hundred thousand rupees or with both.

6. Unauthorized access to critical infrastructure information system or data,-Whoever with

dishonest intention gains unauthorized access to any critical infrastructure information system or
data shall be punished with imprisonment which may extend to three years or with fine which
may extend to one million rupees or with both.

7. Unauthorized copying or transmission of critical infrastructure data.- Whoever with

dishonest intention and without authorization copies or otherwise transmits or causes to be
transmitted any critical infrastructure data shall be punished with imprisonment for a term which
may extend to five years, or with fine which may extend to five million rupees or with both.

8. Interference with critical infrastructure information system or data. Whoever with

dishonest intention interfere with or damages, or causes to be interfered with or damaged, any
part or whole of a critical information system, or data , shall be punished with imprisonment
which may extend to seven years or with fine which may extend to ten million rupees or with
both.

9. Glorification of an offence.- (1) whoever prepares or disseminates information, through any

information system or device, with the intent to glorify an offence relating to terrorism, or any
person convicted of a crime relating to terrorism, or activities of proscribed organizations or
individuals or groups shall be punished with imprisonment for a term which may extend to seven
years or with fine which may extend to ten million rupees or with both.

Explanation,- For the purposes of this section "glorification" depiction of any form of praise or
celebration in a desirable manner.

10. Cyber terrorism.-Whoever commits or threatens to commit any of the offences under
sections 6, 7 , 8 or 9, where the commission or threat is with the intent to,-

(a) coerce, intimidate, create a sense of fear, panic or insecurity in the

Government or the public or a section of the public or community

or sect or create a sense of fear or insecurity in society; or

(b) advance interfaith, sectarian or ethnic hatred; or

(c) advance the objectives of organizations or individuals or groups proscribed under the law,
shall be punished with imprisonment of either description for a term which may extend to
fourteen years or with fine which may extend to fifty million rupees or with both.

11. Hate speech.- Whoever prepares or disseminates information, through an]'information

system or, device, that advances or is likely to advance interfaith, sectarian or racial hatred, shall
be punished with imprisonment for a term which may extend to seven years or with fine or with
both.

12. Recruitment, funding and planning of terrorism.- Whoever prepares or disseminates

information, through any information system or device, that invites or motivates to fund, or
recruits people for terrorism or plans for terrorism shall be punished with imprisonment for a
term which may extend to seven years or with fine or with both.

13. Electronic forgery-- (1) Whoever interferes with or uses any information system, device or
data, with the intent to cause damage or injury to the public or to any person, or to make any
illegal claim or title or to cause any person to part with property or to enter into any express or
implied contract, or with intent to commit fraud by any input, alteration, deletion, or suppression
of data, resulting in unauthentic data with the intent that it be considered or acted upon for legal
purposes as if it were authentic, regardless of the fact that the data is directly readable and
intelligible or not, shall be punished with
imprisonment of cither description for a term which may extend to three years, or with fine
which may extend to two hundred and fifty thousand rupees or with both.

(2) Whoever commits offence under sub-section (1) in relation to a critical infrastructure
information system or data shall be punished with imprisonment for a term which may extend to
seven years or with fine which may extend to five million rupees or with both.

14. Electronic fraud.- Whoever with the intent for wrongful gain interferes with or uses any
information system, device or data or induces any person to enter into a relationship or deceives
any person, which act or omission is likely to cause damage or harm to that person or any other
person shall be punished with imprisonment for a term which may extend to two years or with
fine which may extend to ten million rupees or with both.

15. Making, obtaining, or supplying device for use in offence.- Whoever produces, makes,
generates, adapts, exports, supplies, offers to supply or imports for use any information system,
data or device, with the intent to be used or believing that it is primarily to be used to commit or
to assist in the commission of an offence under this Act shall, without prejudice to any other
liability that he may incur in this behalf, be punished with imprisonment for a term which may
extend to six months or with fine which may extend to fifty thousand rupees or with both.

16. Unauthorized use of identity information.-(1) Whoever obtains, sells, possesses, transmits
or uses another person's identity information without authorization shall be punished with
imprisonment for a term which may extend to three years or with line which may extend to five
million rupees, or with both.

(2) Any person whose identity information is obtained, sold, possessed, used or transmitted may
apply to the Authority for securing, destroying, blocking access or preventing transmission of
identity information referred to in sub-section (1) and the Authority on receipt of such
application may take such measures as deemed appropriate for securing, destroying or
preventing transmission of such identity information.

17. Unauthorized issuance of SIM cards etc.- Whoever sells or otherwise provides subscriber
identity module (SIM) card, re usable identification module (RJUM) or universal integrated
circuit card (UICC) or other module designed for authenticating users t) establish connection
with the network and to be used in cellular mobile, wireless phone or other digital devices such
as tablets, without obtaining and verification of the subscriber's antecedents in the mode and
manner for the Lime being approved by the Authority shall be punished with imprisonment for a
term which may extend to three years or with fine which may extend to five hundred thousand
rupees or with both.

18. Tampering, etc, of communication equipment.- Whoever unlawfully or without

authorization changes, alters, tampers with or re-programs unique device identifier of any
communication equipment including a cellular or wireless handset and starts using or marketing
such device for transmitting and receiving information shall be punished with imprisonment
which may extend to three years or with fine which may extend to one million rupees or with
both.

Explanation - A "unique device identifier" is an electronic equipment identifier which is unique

to a communication device.

19. Unauthorized interception.- Whoever with dishonest intention commits unauthorized

interception try technical means of-

(a) any transmission that is not intended to be and is not open to the public, from or within an
information system; or

(b) electromagnetic emissions from an information system that are carrying data, shall be
punished with imprisonment of either description for a term which may extend to two years or
with fine which may extend to have hundred thousand rupees or with both.

20. offences against dignity of a natural person.- (1) Whoever intentionally and publicly
exhibits or displays or transmits any information through any information system, which he
knows to be false, and intimidates or harms the reputation or privacy of a natural person, shall be
punished with imprisonment for a term w:rich may extend to three years or with fine which may
extend to one million rupees or with both:

Provided that nothing; under this sub-section shall apply to anything aired by a broadcast media
or distribution service licensed under the Pakistan Electronic Media Regulatory Authority
Ordinance, 2OO2 (XIII of 2OO2).

(2). Any aggrieved person or his guardian, where such person is a minor, may apply to the
Authority for remor.al, destruction of or blocking access to such information referred to in sub-
section (1) and the Authority on receipt of such application, shall forthwith pass such orders as
deemed reasonable in the circumstances including an order for removal, destruction, preventing
transmission of or blocking access to such information and the Authority may also direct any of
its licensees to secure such information including traffic data.

21. Offences against modesty of a natural person and minor.-(1) Whoever intentionally and
publicly exhibits or displays or transmits any information which,-

(a) superimposes a photograph of the face of a natural person over any sexually explicit image or
video; or

(b) includes a photograph or a video of a natural person in sexually explicit conduct; or

(c) intimidates a natural person with any sexual act, or any sexually explicit image or video of a
natural person; or
(d) cultivates, entices or induces a natural person to engage in a sexually explicit act,

through an information system to harm a natural person or his reputation, or to take revenge, or
to create hatred or to blackmail, shall be punished with imprisonment for a term which may
extend to five years or with fine which may extend to five million rupees or with both.

(2) whoever commits an offence under sub-section (1) with respect to a minor shall be punished
with imprisonment for a term which may extend to seven years and with fine which may extend
to five million rupees:

Provided that in case of a person who has been previously convicted of an offence under sub-
section (1) with respect to a minor shall be punished with imprisonment for a term of ten years
and with line.

(3) Any aggrieved person or his guardian, where such person is a minor, may apply to the
Authority for removal, destruction of or blocking access to such information referred to in sub-
section (1) and the Authority, on receipt of such application, shall forthwith pass such orders as
deemed reasonable in the circumstances including an order for removal, destruction, preventing
transmission of or blocking access to such information and the Authority may also direct any of
its licensees to secure such information including traffic data.

22. Child pornography,- (1) Whoever intentionally produces, offers or makes available,
distributes or transmits through an information system or procures for himself or for another
person or without lawful justification possesses material in an information system, that visually
depicts-

(a) a minor engaged in sexually explicit conduct;

(b) a person appearing to be a minor engaged conduct; or in sexually explicit

(c) realistic images representing a minor engaged in sexually explicit conduct or

(d) discloses the identity of the minor, shall be punished with imprisonment for a term which
may extend to seven years, or with fine which may extend to five million rupees or with both.

(2) Any aggrieved person or his guardian, where such person is a minor, may apply to the
Authority for removal, destruction of or blocking access to such information referred to in sub-
section (l) and the Authority, on receipt of such application, shall forthwith pass such orders as
deemed reasonable in the circumstances, including an order for removal, destruction, preventing
transmission of or blocking access to such information and the Authority may also direct any of
its licensees to secure such information including traffic data.

23. Malicious code.- Whoever willfully and without authorization writes, offers, makes
available, distributes or transmits malicious code through an information system or device, with
intent to cause harm to any information system or data resulting in the corruption, destruction,
alteration, suppression, theft or loss of the information system or data shall be punished with
imprisonment for a term which may extend to two years or with fine which may extend to one
million rupees or with both.

Explanation.-For the purpose of this section, the expression "malicious code" includes, a
computer program or a hidden function in a program that damages an information system or data
or compromises the performance of such system or availability of data or uses it without proper
authorization.

Part. 6

Chronological Developments in Cyberspace Law

Law and organized social living are integral parts of each other; modern human life is complex
one but organized as well. How much modern life is being organized, it is becoming more
protégé of electronic and digital gear and internet. Internet is the most advanced electronic
communication system. Its role and function are being developed as inevitable part of life of man
of this age. The legal developments in the history of internet are in initial stage we may trace the
footsteps of legal development which has opted nationally and internationally. UNCITRAL was
established by UN in 1966 and it is stand for United Nation Commission on international Trade
Law. Its basic purposes among various others to promote and adoption of new international
conventions, model laws (a model law is a legislative text that is recommended to states for
enactment as part of their national law) and uniform laws for international trade laws. The
models laws which have been adopted by UNCITRAL in relating to the electronic commerce
and electronic signatures were as underneath; 1. Model law on Electronic Commerce 1996. 2.
Model law on Electronic Signature 1998- 2001. These model laws played a fundamental role for
preliminary enactment of electronic laws in various countries. Wipo Copy Right Rules 1996 and
Wipo Performance and Phonograms Treaty Rules 1996 are regulating the copy right
infringements and trade mark issues at nationally and internationally. The ICANN Uniform
Domain Name Disputes Resolution Policy 1998 a non-profit corporation that was created to
supervise a number of Internet-related. The Digital Millennium Copyright Act 1998 (DMCA) is
a United States copyright law that implements two 1996 treaties of the World Intellectual
Property Organization (WIPO). It criminalizes production and dissemination of technology,
devices, or services intended to circumvent measures that control access to copyrighted works
and it also criminalizes the act of dodging an access control, whether or not there is actual
infringement of copyright itself. The European Union passed the EU Copyright Directive or
EUCD 2001, which addresses several of the issues as to criminalize production and broadcasting
of technology, devices, or services intended to circumvent measures that control access to
copyright. The Information Technology Act was enacted in the year 2000 with a view to give an
impetus to the growth of electronic based transactions, to provide legal recognition for e-
commerce and e-transactions, to facilitate e-governance, to prevent computer based crimes and
ensure security practices and procedures in the context of widest possible use of information
technology worldwide. The Electronic Transaction Ordinance 2002 and Prevention of Electronic
Crime Act 2016 are laws enacted in Pakistan to provide legal recognition for e-commerce and e-
transaction and to prevent computer based crimes in the contemporary digital age. Payment
Evolution of legal process always run side by side the society move, problems and issues are
always interrelated to all kinds of facilities that man adopts. The electronic age required to be
recognized its uniform legal existence to resolve its issues coming forth. Model Laws and rules
adopted by UNCITRAL are basis of all electronic laws and rules enacted and introduced at
nations. World recognized uniform laws, rules and policies can only resolve the all electronic
issues successfully.

Part. 7

Electronic Evidence in Cyberspace Law

The definition of information system is intended to cover the entire range of technical means
used for transmitting, receiving, and storing information. For example, depending on the factual
situation, the perception of information system could indicate a communication network, and in
the other instances could include an electronic mailbox or even a tele-copier. The UNCITRAL
Model Law does not address the question of whether the information system is located on the
premises of the addressee or on other premises, since location of information system is not an
operative criterion under the model law.

This section will outline the issues involved in applying the law of evidence to the internet. It
uses for it base of reference, the Qanun-e-Shahadat Order 1984 and recently enacted Electronic
Transaction Ordinance 2002 and Prevention of Electronic Crime Ordinance 2007.

Almost all evidence to prove facts in litigation involving the internet will be computer-
generated. This is the primarily because technology today only allows for internet usage through
computers. It is therefore advisable to have a definition of computer in Section 2(l) of Prevention
of Electronic Crime Ordinance 2007, “electronic system means any electronic device or a group
of interconnected or related devices, one or more of which, pursuant to a program or manual or
any external instruction, performs automated processing of information or data and may also
include a permanent, removable or any other electronic storage medium”.

Computer generated documentary evidence will be of three types. First will be calculation or
analysis that are generated by the computer itself through the running of software and the receipt
of information from other device such as built-in clock and remote sensors. This type of evidence
is termed as real evidence. Real evidence arises in many circumstances. If a bank computer
automatically calculated the bank charges due from a customer based upon it tariff, the
transaction on the account and the daily cleared credit balance, this calculation would be piece of
real evidence.

Second, the documents and records produced by the computer that are copies of information
supplied to the computer by the human beings termed as hearsay evidence. Cheques drawn and
paying- in slips credit to banks are examples of hearsay evidence.

Thirdly, to figure in the daily balance column of a bank statement since this is derived from real
evidence, in fact information that combines real evidence with the information supplied to the
computer by the human beings top form a composite record is termed as derived evidence.

What is the nature if threshold requirement needed to admit these kinds of evidence? Would an
electronic record constitute a document? How does this work in legal regime of cyber space? Are
the contents of electronic records writings? Is the hearsay rule is applicable? In what ways? Can
electronic records be accepted from this rule? On whom should be burden of proof lie, the
proponent or opponent? And how should one produce and admit soft copies? These are the issues
tackled by the recent amendment in Qanun-e-Shahadat Order 1984.

The enactment of Electronic Transaction Ordinance 2002 and subsequently Prevention of

Electronic Crime Ordinance 2007 in Pakistan has made necessitated to evolve the evidentionary
mechanism at litigation. Being consider insufficient to fulfill the requirement of Electronic
evidence, the Qanun-e-Shahadat Order 1984 has amended, all information and documents
generated, received or recorded by electronic system would be admissible, the relevant article of
P.O No. 10 of 1984 is reproduced hereunder;

1. Amendment of Article 2, P.O. No. 10 of 1984.—In the Qanun-e-Shahadat Order, 1984 (P.O.
No. 10 of 1984), hereinafter referred to as the said Order, in clause (1), after sub-clause (d), the
following new sub-clauses (e) and (f) shall be added, namely: “(e) the expression, “automated”,
“electronic”, “information”, “information system”, “electronic document”, “electronic
signature”, “advanced electronic signature” and “security procedure”, shall bear the meanings
given in the Electronic Transactions Ordinance, 2002;

(f) the expression “certificate”, where the context so admits, includes the meaning given to it in
the Electronic Transactions Ordinance, 2002.”

2. Amendment of Article 30, P.O. No. 10 of 1984.—In the said Order, in Article 30, for the full
stop at the end a colon shall be substituted and thereafter the following explanation shall be
added, namely:

“Explanation.—Statements gene rated by automated information systems may be attributed to

the person exercising power or control over the said information system.”
3. Insertion of new Article 46, P.O. No. 10 of 1984.—In the said Order, after Article 46, the
following new Article shall be inserted, namely:

“46-A. Relevance of information generated, received or recorded by automated information

system .—Statements in the form of electronic documents generated, received or recorded by an
automated information system while it is in working order, are relevant facts.

4. Amendment of Article 59, P.O. No. 10 of 1984.—In the said Order, in Article 59—

(a) after the word “impressions” the comma and the words “, or as to authenticity and integrity of
electronic documents made by or through an information system” shall be inserted ; and

(b) for the words “are relevant facts” the words and commas “or as to the functioning,
specifications, programming and operations of information systems, are relevant facts” shall be
substituted.

5. Amendment of Article 73, P.O. No. 10 of 1984.—In the said Order, in Article 73, after the
second Explanation, the following new Explanations shall be added, namely:

“Explanation 3.—A printout or other form of output of an automated information system shall
not be denied the status of primary evidence solely for the reason that it was generated, sent,
received or stored in electronic form if the automated information system was in working order
at all material times and, for the purposes hereof, in the absence of evidence to the contrary, it
shall be presumed that the automated information system was in working order at all material
times.

“Explanation 4.—A printout or other form of reproduction of a Electronic Document, other than
a Document mentioned in Explanation 3 above, first generated, sent, received or stored in
electronic form, shall be treated as primary evidence where a security procedure was applied
thereto at the time it was generated, sent, received or stored.”

6. Insertion of new Article, P.O No. 10 of 1984.—In the said Order, after Article 78, the
following new Article shall be inserted, namely :—

“78-A. Proof of electronic signature and electronic document.—If an electronic document is

alleged to be signed or to have been generated wholly or in part by any person through the use of
an information system, and where such allegation is denied, the application of a security
procedure to the signature or the electronic document must be proved.”

7. Amendment of Article 85, P.O No. 10 of 1984.—In the said Order, in Article 85, after clause
(5), the following new clause (6) shall be added, namely:

“(6) certificates deposited in a repository pursuant to the provisions of the Electronic

Transactions Ordinance, 2002.”
With the amendments in the Qanun-e-Shahadat Order 1984 , some of our fundamental issues
have solved the law recognize electronic counterparts of paper documents and signature, they are
admissible in court may be proved with few barriers such as requirement of original. This is,
however only the first stage of moving into the secure electronic environment that the acts ETO
2002 and PECO 2007 envisages. We must acknowledge that electronic record vulnerable to
tempering and there is no foolproof way of authentication and the acceptance and reliance on
such forms of evidence should be tailored of the needs of each case.

Part. 8

e-Banking in Pakistan

E-Banking in Pakistan: opportunities and challenges

Generally speaking, three factors, quickness, easiness and cheapness have become the
catchwords for the competitiveness and usefulness of all the business operations. Particularly it is
commonplace today to say that banking is undergoing a radical transformation. The symptoms
are new products, new players, new channels etc. This transformation is taking place across all
sectors of the banking industry. That is why banks urgently need to improve their ability, to think
strategically about IT investments. Only those banks that use their technology resources
effectively have the opportunity to secure real competitive advantage in this fast-changing
industry through real product or service differentiation.

Secondly, liberalisation, privatisation and globalisation have been recognised as the key
elements propelling the world towards the present era, characterized by rapid changes and
increased challenges in various fields. In order to meet the challenges of competition unleashed
in the global arena, it has become an imperative on the part of captains of various segments of
the economy to open up to harvest the advantages that are forthcoming from such global
challenges. It is in this context, the most vibrant and important sector, the banking sector, started
gearing up to face the challenges of such ground realities. Accordingly, several measures were
initiated and implemented for improving and strengthening the competitive position of the
banking industry vis-à-vis the foreign banks. Such measures include e-Banking entry into mutual
funds and insurance sector business etc.

Thirdly, banking is service-oriented industry, which has peculiarity to implement various social
as well as commercial objectives. It is an instrument for the development of the economy of the
country. Banks have two roles to play. They create a runway for the free flow of capital
necessary for the growth of the economy. At the same time it must attend to lending and deposit
mobilization in order to make profit for its survival and growth. Banking, though, is now not a
high profit service industry in most countries. In many countries banks are affected by loan
losses and this has a great impact on the health of the banks. This has resulted in the poor quality
of service. Complaints of deterioration in service are viewed in several quarters. Getting
customer patronage and goodwill are becoming a great task and a challenge for banks.

E-Banking made its debut in UK and USA during 1920s. It became prominently popular during
1960s through electronic funds transfers and credit cards. The concept of Web-based banking
came into existence, in Europe and USA in the beginning of 1980s. It has been estimated that 40
percent of banking transactions would be done through net at present. Today, a wide range of
services are being rendered by banks using the electronic media. Since many years, banks have
been operating inter-city transfer of money through demand drafts, mail transfers and telephonic
transfers from one city to other or even within the same city and also from bank to bank through
telephones. It facilitates availability of funds the next day itself. It is a matter of great satisfaction
that the e-Commerce is greatly assisted by the e-Banking through electronic cash cheques and
smart cards. It is one of the trend setting paperless mode of effecting payment by two kinds; I)
Electronic Credit Clearing, and II) Electronic Debt Clearing. The followings are other delivery
channels of e-banking.

TELE-BANKING: It came into operation in the 1970s in the developed countries like the US. It
is accessible for corporate customers that have large volumes of payments to effect and dispose
of a fully automated accounting system. They can establish a Computer to Computer link with
their bank and in this way exchange truly paperless credit transfers which are handled all the way
from the originator to the beneficiary's account without any paper involved.

AUTOMATIC TELLER MACHINE (ATM): This system is known as "Any Time Money"
because it allows customers who have an ATM card to withdraw money at any time from the
bank without interacting with human teller. Since the ATM machine can be installed anywhere
like petrol bunks, markets, railway stations etc, and can well be linked to the main computer. It
allows customers to transact with the bank 24 hours a day and 365 days a year. They allow the
customers to transfer money to and from accounts to view account information, to deposit
cheques or cash, to order cheques, to receive cash etc.

SHARED PAYMENT NETWORK SYSTEM (SPNS): It is a large network of ATMS spread

throughout the city. The participating banks issue universal cards to the customers for transacting
on this network. Under this system, the following services are offered: Cash transactions,
Extended hours service, Across the bank payments, Utility payments, Balance enquiry, Printing
of statements of accounts, Cheque deposit, Request cheque book, Standing instructions and
statements of Account and Point of sale facilities.

CREDIT CARD/DEPOSIT CARD: The credit card is post-paid card. The customer possessing
a credit card needs not carry any cash and is empowered to spend whenever and wherever he
wants with his credit card within the fixed limits prescribed by his bank. The debit card is a
prepaid card with some stored value. Every time a person uses the card, the merchant who in turn
can get the money transferred to his account from the bank of the buyer, by debiting an exact
amount of purchase from the card. To get a debit card, an individual opens an account with the
issuing bank which gives him a debit card along with a personal identification number (PIN).
When he makes a purchase, he enters this number on the shop's PIN Pad. When the card is
swiped through the electronic terminal, it dials the acquiring bank system - either master card or
VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the
transaction. The customer can never overspend because the system will reject any transaction
that exceeds the balance in his account and the bank will never face a default because the amount
spent is debited immediately from the customers account. A person can't operate it in case the
telephone lines are down. The major limitation of debit cards is that only the approved shops
countrywide accept it.

CORPORATE BANKING TERMINAL (CBT): Large corporate customers can log into the
bank's database and have access to their accounts/transactions from their business houses. This
facility has still not been started for customers.

POINT OF SALE (POS) TERMINAL: An electronic funds transfer at the point of sale (EFT
POS) is initiated by using a payment card at a retail location. The POS system identifies the card
holder and checks whether his account has sufficient funds to cover the purchase. The client
enters his PIN and confirms the amount due. Payment is then automatically effected by
delivering the card holder's account with the amount for the purchase and crediting to the
retailer's account. POS installed at petrol stations and large retail shoppers are like ATMS, linked
via leased lines to the bank's network.

Electronic Data Interchange refers to the electronic exchange of structured information relating
to business transactions between commercial entities (in some cases also public administrations),
generally using telecommunications. The transfer of information related to commercial trade
through the banking system, sometimes called financial EDI, includes payment orders remittance
information, statements of account and messages linked to by an UN body EDIF ACT
(Electronic Data Interchange for Finance, Administration, Commercial and Trade). Reserve Bank
Of India, for boosting e-Banking in India has established CUG Satellite Communication
Networking i-e. INFINET for the banks and financial institutions. Once the network is
completely operationalized, the concept of branch banking will cease to exist and an account
holder will be called bank customer and not a branch customer.

ONLINE BANKING: It is doing banking transactions through our home P.C. The banks that do
business through net have Websites. The customer clicks into the Website and gets the history of
the bank. Then he can demand the necessary application form through the net. He fills in the
form and passes it on to the bank. The bank then sends a UPP (Unique Personal Password) for
accession to its computer. Therefore, a customer must have a P.C, a modem, an internet browser
or a password finance performance. The Online banking is fast gaining ground in Pakistan. Some
software companies are also offering network-banking facilities. Information Technology has
opened up immense new avenues for developing countries such as Pakistan to use the creativity
of their young through bearing and working out and to make a blend use of their brilliant youth
for national development. A few hundred thousand pages were on the Internet in 1994, there are
now over a billion pages and are being added to at the rate of about a million new pages a day.

Part. 9

Email:

E-mail (electronic mail) is the exchange of computer-stored messages by telecommunication.

(Some publications spell it email; we prefer the currently more established spelling of e-mail.) E-
mail messages are usually encoded in ASCII text. However, you can also send non-text files,
such as graphic images and sound files, as attachments sent in binary streams. E-mail was one of
the first uses of the Internet and is still the most popular use. A large percentage of the total
traffic over the Internet is e-mail. E-mail can also be exchanged between online service provider
users and in networks other than the Internet, both public and private.

E-mail can be distributed to lists of people as well as to individuals. A shared distribution list can
be managed by using an e-mail reflector. Some mailing lists allow you to subscribe by sending a
request to the mailing list administrator. A mailing list that is administered automatically is called
a list server.

Email Provided by Online Services and ISPs email-definition

All online services and Internet Service Providers (ISPs) offer email, and most also support
gateways so that you can exchange mail with users of other systems. Usually, it takes only a few
seconds or minutes for mail to arrive at its destination. This is a particularly effective way to
communicate with a group because you can broadcast a message or document to everyone in the
group at once.

Although different email systems use different formats, there are some emerging standards that
are making it possible for users on all systems to exchange messages. In the PC world, an
important e-mail standard is MAPI. The CCITT standards organization has developed the X.400
standard, which attempts to provide a universal way of addressing messages.

To date, though, the de facto addressing standard is the one used by the Internet system because
almost all e-mail systems have an Internet gateway.

E-mail is one of the protocols included with the Transport Control Protocol/Internet Protocol
(TCP/IP) suite of protocols. A popular protocol for sending e-mail is Simple Mail Transfer
Protocol and a popular protocol for receiving it is POP3. Both Netscape and Microsoft include an
e-mail utility with their Web browsers.
Part. 10

WWW:

The World Wide Web (abbreviated WWW or the Web) is an information space where documents
and other web resources are identified by Uniform Resource Locators (URLs), interlinked by
hypertext links, and can be accessed via the Internet.[1] English scientist Tim Berners-Lee
invented the World Wide Web in 1989. He wrote the first web browser computer program in
1990 while employed at CERN in Switzerland. The Web browser was released outside CERN in
1991, first to other research institutions starting in January 1991 and to the general public on the
Internet in August 1991.

The World Wide Web has been central to the development of the Information Age and is the
primary tool billions of people use to interact on the Internet. Web pages are primarily text
documents formatted and annotated with Hypertext Markup Language (HTML). In addition to
formatted text, web pages may contain images, video, audio, and software components that are
rendered in the user's web browser as coherent pages of multimedia content.

Embedded hyperlinks permit users to navigate between web pages. Multiple web pages with a
common theme, a common domain name, or both, make up a website. Website content can
largely be provided by the publisher, or interactively where users contribute content or the
content depends upon the users or their actions. Websites may be mostly informative, primarily
for entertainment, or largely for commercial, governmental, or non-governmental organisational
purposes.

Tim Berners-Lee's vision of a global hyperlinked information system became a possibility by the
second half of the 1980s. By 1985, the global Internet began to proliferate in Europe and the
Domain Name System (upon which the Uniform Resource Locator is built) came into being. In
1988 the first direct IP connection between Europe and North America was made and Berners-
Lee began to openly discuss the possibility of a web-like system at CERN.[7] In March 1989
Berners-Lee issued a proposal to the management at CERN for a system called "Mesh" that
referenced ENQUIRE, a database and software project he had built in 1980, which used the term
"web" and described a more elaborate information management system based on links embedded
in readable text: "Imagine, then, the references in this document all being associated with the
network address of the thing to which they referred, so that while reading this document you
could skip to them with a click of the mouse." Such a system, he explained, could be referred to
using one of the existing meanings of the word hypertext, a term that he says was coined in the
1950s. There is no reason, the proposal continues, why such hypertext links could not encompass
multimedia documents including graphics, speech and video, so that Berners-Lee goes on to use
the term hypermedia.
Part. 11

Jurisdiction in Cyberspace law

The effectiveness of a judicial system rests on foundation of regulations which define every
aspect of a system’s functioning and principally it jurisdiction. A court must have jurisdiction
venue and appropriate services of process in order to hear a case and render an effective
judgment. Jurisdiction is the power of a court to hear and determine a case. Without jurisdiction,
a court’s judgment is ineffective and impotent. Such jurisdiction is essentially of two types,
namely subject matter jurisdiction and personal jurisdiction and these two must be conjunctively
satisfied for a judgment to take effect. It is the presence of jurisdiction that ensures the power of
enforcement to a court and in the absence of such power the verdict of a court is to say the least
of little or no use. Moreover only generally accepted principles of jurisdiction would ensure that
court abroad also enforce the orders of other judicial bodies.

The world jurisdiction generally carries two legal meanings, firstly, it is used to denote the
assumption of authority or power of the court over a legal proceeding, and secondly it means the
area over which the authority or power of a court could extend. No authority cab be said to have
exercised its jurisdiction if it took for a material fact what was not in law that fact, if it proceeded
to at it grave and obvious disregard of a material provision of law, if it exercised a discretion
without the existence of the situation in which it could be exercised, if it violated the principles
of natural justice when the law had not permitted it to do so, and if it gave reasons for its
conclusions which could not, in those circumstances, rationally lead them.

The advent of global computer networks has rendered geographic boundaries increasingly
porous and ephemeral. Use of the global Internet computer network is growing exponentially. As
Internet subscription increases, just as where any sizable numbers of human beings interact,
divergences may be anticipated to arise. As the community of Internet users grows increasingly
diverse, and the range of on-line interaction expands, disputes of every kind may be expected to
take place. On-line contracts will be breached, on-line torts will be committed, on-line crimes
will be committed. Although many of these disputes will be settled informally, others may
require prescribed mechanisms for dispute resolution.

The whole trouble with Internet jurisdiction is the presence of multiple parties in various parts of
the world who have only a virtual nexus with each other. Then, if one party wants to sue the
other, where can he sue? Traditional requirements generally covers two areas- firstly, the place
which the' defendant resides, or secondly, where the cause of action arises. However, in the
context of the internet, both these are difficult to establish with any assurance. Even a childishly
simple transaction can give rise to a mind-boggling issue of jurisdiction on the Net.

Issues of this nature have contributed to the complete confusion and contradictions that plague
judicial decisions in the area of Internet jurisdiction. Considering the lack of physical boundaries
on the Internet, is it possible to reach out beyond the court's geographic boundaries to haul a
defendant into its court for conduct in "cyberspace"?

It is worth examining the decision in Cyber sell, Inc. v. Cyber sell. Inc as a typical example of a
fact-situation involving a conflict over jurisdiction. The case involved a service mark dispute
between two corporations, one at Orlando and another at Arizona. The court had to address the
issue of whether the mere use of a web-site by the Florida corporation was sufficient to grant the
Court, in Orlando, jurisdiction. The Court answered the question in the negative, focusing on
traditional analysis established by the US Supreme Court concerning the due process aspects of
personal jurisdiction: "it is essential in each case that there be some act by which the defendant
purposefully avails itself of the privilege of conducting activities within the forum State, thus
invoking the benefits and protections of its laws." The Court rejected the plaintiff's argument that
by employing a web page, without more, a web publisher was subject to jurisdiction in the
plaintiff's forum. The Court also rejected the plaintiff's reliance on the "effects test", holding that
the test does not apply with the same force to a corporation as it docs to an individual "because a
corporation dues not suffer harm in a particular geographic location in the same sense that an
individual does.

The earliest reported decision is Pres-Kip, Inc. v. System One. Direct Access, Inc which involved
electronic contacts through a computerized airline reservation system the plaintiff owned and
operated a computerized airline reservation system. The computer base for the system, as well as

the plaintiff's main billing office, was in Florida. A branch business office operated out of New
York. The defendant, a New York corporation, owned and operated a travel office in New York.
The two parties negotiated a lease contract in New York. The breach of which was the subject of
the lawsuit. The court found only two contacts between the defendant and the forum stale
Florida, namely that the defendant forwarded lease payments to a billing office in Miami, and
that the defendant's computers made electronic contacts with the plaintiff's computer base in
Florida. Citing Burger, King Corp. v. Rudzewich, the court found that a contract with an out-of-
state party alone could not establish jurisdiction. That left only the electronic contacts for the
court to consider. The Florida Appeals Court held that electronic contacts with a computer
database located in the forum state were insufficient to establish personal jurisdiction-Thus, the
defendant did not purposefully avail himself of Florida's jurisdiction, and the first prong of the
test failed. In addition, the court warned about the unfairness of allowing jurisdiction where the
only contacts are between computers.

For jurisdiction purposes, web sites are split into two groups: passive and interactive. Passive
sites provide information in a "read only" format, Interactive sites encourage the browser to enter
information identifying the browser and/or providing background on the browser's interests or
buying habits. It is no surprise that courts arc more willing to find that a web publisher who
solicits information about the forum's residents is purposefully availing itself of the forum's
benefits than a publisher who simply provides information about the publisher, its products and
services.

In a trademark infringement case similar to Zippo, American Network, Inc. v. Access

American/contents Atlanta Inc, a Georgia defendant was hauled into a New York court. A New
York plaintiff sued the Georgia defendant for trademark infringement and unfair competition in
the U.S. District Court for the Southern District of New York- The plaintiff, a provider of similar
consulting services to those provided by the defendant, claimed the mark used by the
defendant, ," infringed the plaintiff's mark . New York's long-arm statute includes a provision for
jurisdiction over an out of slate tortfeasor when harm is felt within the state if the defendant has
reason to expect in stale consequences and the defendant derived substantial revenue from
interstate or international commerce. Since the plaintiff's business was located in New York, and
the defendant was aware of such, it was reasonable for the defendant to expect that the
publication of the offending mark on the Internet would' result in harm suffered in New York,
The court, looking further to due process, stated that the web page alone would not necessarily
have been enough, but that additional contacts with six New York subscribers to the advertised
services established purposeful availment. Additionally, the court held that those subscribers
evidenced the defendant's efforts to market his services in New York, making a New York court
appearance a reasonable expectation. Since marketing was the basis for the cause of action, the
defendant's on-line actions were found to be directly related to the complaint.

Passive activity is considered a "posting" of information, lacking interaction and is typically an

advertisement on the Web. As mentioned earlier, one of the first federal cases deciding whether
an advertisement posted on a web site is sufficient to confer jurisdiction over an out-of-state
defendant was Inset Systems, Inc. v. Instruction Set, Inc, This case was based on a claim of
trademark infringement, but it yields a different finding of personal jurisdiction. The alleged
infringement involved the Massachusetts defendant's use of the word "Inset" in its Internet
domain name and in a toll-free telephone number. The only contacts the defendant had with
Connecticut were its web site and a toll-free telephone number, both of which advertised the
defendant's services. The Court stated that the defendant directed its advertising activities on the
Internet and its toll-free number to all states. Held that the defendant was subject to jurisdiction
in Connecticut because its advertising activities were purposefully directed to Connecticut.
Taken one step further, this would suggest that advertising over the Internet confers jurisdiction
in any state or country where it could be accessed. The Court concluded that since the defendant
"purposefully directed its advertising activities toward this state on a continuing basis ......" it
could reasonably anticipate the possibility of being hauled into court here. To avoid such an
untenable result, one should keep in mind the particular facts of the Inset case, namely that
jurisdiction was established in Connecticut over a Massachusetts corporation, implying that the
reasonableness prong played an important role.

The Compuserve case indicates just how difficult jurisdictional analysis may be when computer
networks are at issue. However, no matter how perplexing the determination of minimum
contacts has been with regard to a proprietary computer system, its application to Internet
activity may prove to be even more arcane. The court in Compuserve v. Patterson properly
declined the question of whether the jurisdiction would be proper wherever the defendant's
software happened to land, yet this question is relatively simple in the context of a proprietary
system where the subscribers are known to the system owner. By contrast, the Internet is owned
by no one, there are no subscription fees, and no reliable records of who is using the network, or
of where they may be located. This poses severe problems for a due process analysis based on
territorial contacts; anomalous results may be expected because the network's structural
indifference to geographic position is incongruous with the fundamental assumptions underlying
the International Shoe test.

Much of the Supreme Court's jurisprudence in this area appears to contradict the essential nature
of the Net. Where jurisdiction from Internet contacts is at issue, physical presence of the
defendant within the forum state will likely be the exception rather than the rule -- cybernauts do
physically reside somewhere in real space, and if the defendant cybernaut physically resides
within the forum, the law seems well settled that its courts can exercise jurisdiction over her.
However, given the far-flung nature of the Net, far more defendants will reside outside any given
plaintiff's preferred jurisdiction than will reside within it. A significant number of on-line
disputes will therefore require an International Shoe analysis.

Thus, personal jurisdiction over an Internet user will most frequently be premised on the user's
contacts with the forum. Given the nature of on-line transactions, those contacts will in many
cases be solely Internet-based contacts. As described above, the "minimum contacts" test
requires the tribunal to inquire whether the defendant cybernaut has purposefully availed herself
of the benefits of the forum state, such that she might reasonably foresee being haled into court
there. In particular, pecuniary gain from the forum is assumed to signal that the defendant has
"benefited" in a concrete way from the laws and public services of the forum.

However, one must wonder how reliable an indicator pecuniary gain will be as to minimum
contacts via Internet. At the present time, the majority of Internet users probably derive no
pecuniary benefit from their on-line activity, yet their on-line activity may still give rise to a
variety of legal disputes. Personal communications and discussion groups may be breeding
grounds for a wide range of constitutional, contractual, and tort claims, but in the course of
conduct that leads to the claim, little money changes hands. This situation is of course already
changing; there is money to be made in cyberspace, and entrepreneurs are scrambling to claim
their share. Clearly, as on-line commerce grows, many businesses will benefit financially from
transactions conducted via the network.

Yet the business activity these on-line vendors conduct will, for the most part, not be directed
toward a particular physical jurisdiction. Businesses will frequently be ignorant of a customer's
physical location, and customers equally ignorant of the business. If the transaction results in
shipment of physical goods, then this veil of ignorance may be rent; the goods must end up
somewhere. But the unique aspect of Internet commerce is that the Net allows not only
negotiation and payment on-line, but also delivery of goods if the goods are digitized
information products: software, pictures, movies, music, novels, data, and the like. Information-
based services such as systems monitoring, education, data processing, or consulting can also be
offered wholly on-line. Payment by credit card may reveal the customers' identity to a business,
but not her location, and payment using anonymous "digital cash" is even less traceable.

Personal jurisdiction has been a confusing legal issue since at least the advent of the
telecommunication and information technology, and jurisdictional dilemmas have arisen with
successive waves of technology. However, in the case of the Internet, such jurisdictional
overreaching may threaten the most important features of this new medium. People familiar with
the Internet know that one of the network's great benefits is that the average citizen can
participate for a relatively small investment. In the past, communicating with or catering to a
national constituency required heavy capital outlays; the Internet makes nationwide
communication and commerce accessible to citizens for as little as a few hundred rupees. But the
prospect of multi-jurisdictional liability may very well elevate the price of involvement beyond
the average citizen's reach. The average user simply cannot afford the cost of defending multiple
suits in multiple jurisdictions.

Part. 12

Social Media

Social media is the collective of online communications channels dedicated to community-based

input, interaction, content-sharing and collaboration. Websites and applications dedicated to
forums, microblogging, social networking, social bookmarking, social curation, and wikis are
among the different types of social media.

Facebook is a popular free social networking website that allows registered users to create
profiles, upload photos and video, send messages and keep in touch with friends, family and
colleagues. According to statistics from the Nielsen Group, Internet users within the United
States spend more time on Facebook than any other website.

Twitter is a free microblogging service that allows registered members to broadcast short posts
called tweets. Twitter members can broadcast tweets and follow other users' tweets by using
multiple platforms and devices.

Google+ (pronounced Google plus) is Google's social networking project, designed to replicate
the way people interact offline more closely than is the case in other social networking services.
The project’s slogan is “Real-life sharing rethought for the web.”
Wikipedia is a free, open content online encyclopedia created through the collaborative effort of
a community of users known as Wikipedians. Anyone registered on the site can create an article
for publication; registration is not required to edit articles. Wikipedia was founded in January of
2001.

LinkedIn is a social networking site designed specifically for the business community. The goal
of the site is to allow registered members to establish and document networks of people they
know and trust professionally.

Reddit is a social news website and forum where stories are socially curated and promoted by
site members. The site is composed of hundreds of sub-communities, known as "subreddits."
Each subreddit has a specific topic such as technology, politics or music. Reddit site members,
also known as, "redditors," submit content which is then voted upon by other members. The goal
is to send well-regarded stories to the top of the site's main thread page.

Pinterest is a social curation website for sharing and categorizing images found online. Pinterest
requires brief descriptions but the main focus of the site is visual. Clicking on an image will take
you to the original source, so, for example, if you click on a picture of a pair of shoes, you might
be taken to a site where you can purchase them. An image of blueberry pancakes might take you
to the recipe; a picture of a whimsical birdhouse might take you to the instructions.

Brian Solis created the following social media chart, known as the conversation prism, to
categorize social sites and services into various types of social media.

Social media is becoming an integral part of life online as social websites and applications
proliferate. Most traditional online media include social components, such as comment fields for
users. In business, social media is used to market products, promote brands, connect to current
customers and foster new business.

Social media analytics is the practice of gathering data from blogs and social media websites and
analyzing that data to make business decisions. The most common use of social media analytics
is to mine customer sentiment to support marketing and customer service activities.

Social media marketing (SMM) takes advantage of social networking to help a company increase
brand exposure and broaden customer reach. The goal is usually to create content compelling
enough that users will share it with their social networks.

One of the key components of SMM is social media optimization (SMO). Like search engine
optimization (SEO), SMO is a strategy for drawing new and unique visitors to a website. SMO
can be done two ways: by adding social media links to content such as RSS feeds and sharing
buttons, or by promoting activity through social media via status updates, tweets, or blog posts.

Social CRM (customer relationship marketing) can be a very powerful business tool. For
example, establishing a Facebook page allows people who like your brand and the way you
conduct business to Like your page, which creates a venue for communication, marketing and
networking. Through social media sites, you can follow conversations about your brand for real-
time market data and feedback.

From the customer’s perspective, social media makes it easy to tell a company and everyone else
about their experiences with that company -- whether those experiences are good or bad. The
business can also respond very quickly to both positive and negative feedback, attend to
customer problems and maintain, regain or rebuild customer confidence.

Enterprise social networking allows a company to connect individuals who share similar
business interests or activities. Internally, social tools can help employees access information and
resources they need to work together effectively and solve business problems. Externally, public
social media platforms help an organization stay close to their customers and make it easier to
conduct research that they can use to improve business processes and operations.

Social media is also often used for crowdsourcing. Customers can use social networking sites to
offer ideas for future products or tweaks to current ones. In IT projects, crowdsourcing usually
involves engaging and blending business and IT services from a mix of internal and external
providers, sometimes with input from customers and/or the general public.

On the other hand, the integration of social media in the business world can also pose challenges.
Social media policies are designed to set expectations for appropriate behavior and ensure that an
employee's posts will not expose the company to legal problems or public embarrassment. Such
policies include directives for when an employee should identify himself as a representative of
the company on a social networking website, as well as rules for what types of information can
be shared.

Part. 13

E-Commerce

UCITA in its core purpose is to identify the terms and conditions for making contracts in the
electronic environment. More specifically, it applies to the making of contracts for information
goods, and even that scope has been beaten down as various industries have chosen not to be part
of the effort. The principal application of the entire code is to computer software.

Efficiency of traditional law is being vividly challenged by electronic communication and

delivery systems. In the familiar world of physical transactions, the law has evolved over
centuries to serve compound purposes. As transactions travel to a computer-network, many of
those same objectives of the law remain, but the law often fails to fulfill them or at least the law
sometimes goes down to meet its goals when applied to e-transactions.
The important cadaver of applicable code is contract law. Simple purchases, whether over the
counter or from an Internet website are contracts. Look the simplest contact: the purchase of
some common object, food, clothing, household goods from your local store. Important
ingredient of a valid contract: offer, acceptance, and consideration . When making the purchase
in person, opportunities abound to raise questions about the goods, the price, and other concern,
If the parties have doubts about the reliability of the products, or are concerned about whether
the parties have authority to make the transaction, or if the check handed over for the worth is
somehow suspect, again the parties have opportunities to ask questions, collecting information,
and size up the object, the person, and the signature on the check or credit card.

Turning to the cyberspace virtual environment and we have the same old contract. We can make
the exact same sale for the exact same price involving the exact same goods between the exact
same parties. But when the parties are removed from one another, and the transaction is
consummated in the relatively remote conditions of cyberspace, new concerns are certain to
arise. Which may inquire appraisal of goods when messages exchange electronically, what
aspects of the exchange comprise the terms of the purchase? Do these parties have authority to
make the contract? If an e-signature is required, is an electronic signature sufficient? What are
the legal consequences if the goods are never delivered or are defective?

Most of these concerns are actually aged and not new. The earliest forms of global
communication including mail, telegraph, and telephone brought concerns about making
contracts and fulfilling their terms. The electronic environment, however, is greatly worsening
those challenges. The rapid growth of the Internet as a tool for commerce has brought a rapid
shifting of common transactions from the marketplace to cyberspace. That development also has
displaced multimillions of consumer purchases, plunging millions of common consumers into
arrangements made on the Internet that often go sour. When sophisticated commercial
transactions fail, one may hope or expect that the parties more likely have the insight, lawyers,
and bargaining power to avoid problems and settle differences. They may not, or they may also
find themselves facing unacceptable resolutions. Some of those parties are major businesses with
enormous economic and political influence. On the other hand, millions of average consumers
are also finding themselves in failed electronic transactions with little immediate recourse. They,
too, may in numbers have considerable combined voting power, making lawmakers in state
capitals and in Washington, D.C. take notice. Courts have struggled with some individual cases,
but many of the developments in the law related to electronic commerce are in recent and
pending state and federal legislation. This overview will give particular attention to legal regimes
related to making contracts in electronic commerce, with particular attention to the statutory
developments.
Part. 14

E-signatures

“Electronic signatures a method which safe sanctity of electronic document and attribute the
person who has full control over this electronic document, by using unique digital logarithm”. (S
J Tubrazy)

More than 100 years back, people were using Morse code and the telegraph to electronically
accept contracts. An early basis of electronic signatures came from the New Hampshire Supreme
Court "It makes no difference whether [the telegraph] operator writes the offer or the acceptance
in the presence of his principal and by his express direction, with a steel pen an inch long
attached to an ordinary penholder, or whether his pen be a copper wire a thousand miles long. In
either case the thought is communicated to the paper by the use of the finger resting upon the
pen; nor does it make any difference that in one case common record ink is used, while in the
other case a more subtle fluid, known as electricity, performs the same office."

In the 1980’s fax machines were started to be used for high priority or time sensitive delivery of
paper based documents.

The first “fax” created the basis for the discussion of electronic signature validity. Nevertheless it
was the first time someone could sign something, place it in a machine, send it from phone line
to another and deliver a digitally reproduced signature. The method via this signature route was
not controllable or observable, and in most cases it traversed miles of wire before reaching its
end, so how could it be considered a valid signature? Objectives of the signature were clear to
everyone, but businesses wanted to know they could count on the validity of the signature, and if
no one actually witnessed the action of one individual or of a corporation how could a business
put any faith in it? This caused quite a stir and in rapid fashion the courts ruled this signature
carried the same validity as if the parties were standing physically with each other. With this, the
fax became standard operating procedure world-wide.

The courts found legality in this practice of signature capturing and businesses also felt safe in
this method. It might not be realized that the original fax paper’s ink would vanish after a period
of time and had to make another copy of the fax using a copier if liked to store it permanently.
Also many times the quality of the image was poor or hardly comprehensible, but businesses
understood the intention and would consider it signed even if there was only a partially legible
signature. So in essence a copy of a digital image and even with so many loopholes for alteration
and criminal wrongdoing 7 the fax still worked and business flourished.

Earlier than the fax machine, the contract could have been signed verbally , and then somewhere
down the road a paper copy would have been signed and mailed. Many sales before the fax
machine were carried out with a simple comment over the phone. This drive to get business and
make the wheels turn demonstrates the most vital point in an electronic communications based
world, or for that matter in a digital world with no physical or direct contact, is most businesses
can run on trust. They provide a service to a customer and the customer trusts they will provide
that service in a satisfactory manner, while the service provider trusts that the customer will pay
for services rendered.

President Clinton exercised his electronic signature to sign Electronic Signatures in Global and
National Commerce Act which created a codified framework for e-signatures to be used in all
interstate and international commerce. Earlier to this codification, a number of states, beginning
with Utah in 1995, had passed electronic signing legislation, with almost every state, as of 2009,
having legislation on their books relating to electronic signatures.

In 1996 the United Nations published the UNCITRAL Model Law on Electronic Commerce. The
model law was very significant in the development of electronic signature laws around the
world. The U.S. Code defines an electronic signature for the purpose of US law as "an electronic
sound, symbol, or process, attached to or logically associated with a contract or other record and
executed or adopted by a person with the intent to sign the record." It may be an electronic
transmission of the document which contains the signature, as in the case of facsimile
transmissions, or it may be encoded message, such as telegraphy using Morse code.

Codified definitions of electronic signature:

UETA 16 Sec 2 definitions

(5) "Electronic" means relating to technology having electrical, digital, magnetic, wireless,
optical, electromagnetic, or similar capabilities.

(6) "Electronic agent" means a computer program or an electronic or other automated means
used independently to initiate an action or respond to electronic records or performances in
whole or in part, without review or action by an individual.

(7) "Electronic record" means a record created, generated, sent, communicated, received, or
stored by electronic means.

(8) "Electronic signature" means an electronic sound, symbol, or process attached to or logically
associated with a record and executed or adopted by a person with the intent to sign the record.

PIPEDA 17 definitions

(1) An electronic signature is "a signature that consists of one or more letters, characters,
numbers or other symbols in digital form incorporated in, attached to or associated with an
electronic document";

(2) A secure electronic signature is as an electronic signature that

(a) is unique to the person making the signature;

(b) the technology or process used to make the signature is under the sole control of the person
making the signature;

(c) the technology or process can be used to identify the person using the technology or process;
and

(d) the electronic signature can be linked with an electronic document in such a way that it can
be used to determine whether the electronic document has been changed since the electronic
signature was incorporated in, attached to or associated with the electronic document.

ESIGN Act Sec 106 definitions

(2) ELECTRONIC- The term 'electronic' means relating to technology having electrical, digital,
magnetic, wireless, optical, electromagnetic, or similar capabilities.

(4) ELECTRONIC RECORD- The term 'electronic record' means a contract or other record
created, generated, sent, communicated, received, or stored by electronic means.

(5) ELECTRONIC SIGNATURE- The term 'electronic signature' means an electronic sound,
symbol, or process, attached to or logically associated with a contract or other record and
executed or adopted by a person with the intent to sign the record.

The eSignature, a double key encryption system, which is used in electronic digital signature,
will bring, for definite, new openings not only to business but to all subjects of virtual world & e-
government services. This system helps to avoid forgeries, speeds up document circulation, saves
time and environment, abolishes corruption. Digital signatures could be used everywhere
including intra-corporate electronic document circulation, communication with state authorities,
in tax reports and internet bank payment system, municipal order bids, etc.

Part. 15

E-money in Cyber World

The facility of buying and selling online has been generated interest in the development of new
electronic payment mechanism. Electronic money (also known as e-currency, e-money,
electronic cash, electronic currency, digital money, digital cash, digital currency, cyber currency)
referred as electronic money which is exchanged electronically over a technical device such as a
computer or mobile phone 3. Electronic funds transfer, direct deposits, payment processors and
digital currencies are recognized examples of e-money.

In 1997, the Clinton Administration issued A Framework for Global Electronic Commerce. This
framework provides five basic doctrines to guide development of Internet commerce. First, the
private sector should lead. Second, governments should avoid undue restrictions that might
distort development of the electronic marketplace. Third, government should work to foster a
legal environment that is predictable, consistent, and minimalist. Fourth, governments should
recognize that the Internet is unique, and requires new policies. Fifth, electronic commerce
should be facilitated on a global basis.

European directives call electronic money as “a digital equivalent of cash” stored on digital
device and controlled by remote server. The E-Money Directive (2009/110/EC) (EMD) urges to
enable new, innovative and secure electronic money services to be designed, provide market
access to new companies, and foster real and effective competition between all market
participants.

There are two distinct types of e-money, first the identified e-money, second anonymous e-
money, known as digital cash. Identified e-money contains information edifying the identity of
the person who initially withdrew the money from the bank. Also, in much the same manner as
credit cards, identified e-money enables the bank to track the money as it moves through the
economy. Anonymous e-money works just like real paper cash. Which is one-time use money
where a buyer buys a note at the bank sends it to a seller who deposits it in his bank account.

E-money works via online network with a bank to conduct a transaction with a third party.
Whereas major problem with electronic money is cryptography, that why use of digital cash has
been still comparatively low-scale. The Hong Kong's Octopus card system was an initial weird
success, which started as a transit payment system and has grown into a widely used electronic
cash system. Singapore also has an electronic money execution for its public transportation
system namely Felica card which is very similar to Hong Kong's Octopus. There are also one
execution is in the Netherlands, known as Chipknip.

Essential physiognomies of e-money

Unique distinction is existed in the physiognomies of e-money, though it does not perform all the
functions of conventional money except to medium of exchange. Some writers count various
characteristics of e-money including security, reliability, scalability, anonymity, acceptability,
convertibility, efficiency:

Security and Reliability

The apprehensions all the time attached to the physical hard money never be different to the
electronic money but the process of course is widely different, henceforth, many experts consider
that the online use of electronic payments will depend on the growth of widely available systems
that promise the security of various forms of electronic money. E-money structure must be
secure abundantly to prevent any interceptions. Transactions between the parties should be
protected to the risk of cybercrimes. Experts tend to weigh methods of encryption in terms of the
difficulty conversant parties would face in decoding or decrypting the information. The experts
suggest authenticated system of digital signatures for the execution of electronic money which
may build trust among the consumers to transaction online. There is a growing concern among
policy makers and consumer groups in Europe and the United States that individual privacy
should not in any way be compromised by electronic commerce and electronic payments.

Anonymity

All e-money systems have to define a range of privacy between the two poles . E-money
transacting parties never be able to identify each other e.g., all transactions should be private.
Physical money has such characteristics as being portable, recognizable and acceptable,
transferable, untraceable, anonymous and has the ability to make change. Whereas the inventors
of electronic money focused on preserving the features of untraceability and anonymity.
Therefore, electronic cash is an electronic payment system that provides the properties of user
anonymity and payment un-traceability.

Portability

Electronic money is not at all reliant on any physical location . E-money may be secure and store
in cloud infrastructure somewhere on the internet without limiting access to it at any casual
terminal on the condition. It is also be possible to use of smart digital devices and other media
for storing and using e-money. The e-money may be distribute and transfer though sweeping
networks and storable on different smart devices and in different locations inside and outside
these networks.

Interoperability

Interoperability is a system that “allows the merchant or agent accepting payment from a
consumer to participate in multiple schemes.” Interoperability, both domestic and international
would help promote acceptance of electronic money. Experts agree that electronic money could
not find extensive use until technical experts solve the problem of interoperability.
Interoperability with interconnect sub-systems may be achieved by defining the security and
functional aspects of the sub-systems. For example, the Common Electronic Purse Standards
specifications describe the technical interoperability requirements for sub-systems of card-based
systems in which a commercial service provider acts as an intermediary between the various
schemes and the merchant. Although the merchant is technically accepting payments from the
various schemes separately, the use of the intermediary is intended to simplify this process
achieving some of the effects of interoperability.

Dividable and Reusable

There is no restriction for application of e-money just like traditional physical money has some
restrictions in terms of size and number that cannot be divisible in some certain cases. Having
strong feature of reusability 22 e-money should be used again and again by transferring to
another person without bank intervention.
Flexible and acceptable

E-money infrastructure supports various online payment methods including credit cards, debit
card, personal checks and even anonymous electronic currency. It is generally believed that
different types of e-money will be a modern, safe and common way of online and offline
payment method in the future as an substitute of conventional hard money and credit cards. To
accelerate this trend it must be given sufficient importance to it by the governments and
international institutions. Various statutory protections have been provided to credit and debit
cards in this context.

Part. 16

Cyber etiquettes

‘Cyber etiquette’ or ‘netiquette’ is human or auto machine conduct socially acceptable in cyber
world. In fact it is mandatory way to use internet and information technology devices in routine
life. Law cannot regulate all aspects of information technology whereas law still could not even
define the major aspect of information technology. Etiquette in technology is a justly recent
concept. The norms typically call social code of network of etiquette that apply when
communicating over the Internet or cloud computing devices are different than in person or by
audio or videophone, even law has least define facial expressions and body language whereas in
cyberspace these hugely prevail while interacting the user with each other.

In the midst of 1990 a common person’s ability to participate in online society was need to
define the act of a person while using digital technology. The term is often used in relation to
Internet safety measures and cyber etiquette. IT experts and researches published a set of rules
for fixing proper guidelines for cyber etiquettes. The norms of netiquettes prevailing in present
cyber society while using digital devices interconnected with internet network are as follow;

Social norms and restraints

Social norms are courtesies impliedly fixed by society in mutual accepted interaction. Violation
of these social norms does not amount to penal action rather these are considered as incivilities
voluntarily adopted by the civil society. The use of mobile phone during funerals or weddings, in
toilets, cinemas and theatres is considered as matter of social insolence. Public libraries,
bathrooms, city cinemas, doctors' clinic and places of worship prohibit the use of mobile phones.
Digital Signal-jamming installation inspite of being illegal also be used. Several auditoriums
have installed Faraday cage, which stops signal saturation without violating signal jamming
laws.

Education institution norms and restraints

Nearly all over the world, education institutions have mobile device policy e.g., prohibited cell
phones during study time avoiding any disturbance and distraction. In US students are banned
from taking mobiles to school. In UK recovery of mobile phone during examination can result
disqualification from that subject. In India and Pakistan use of mobile phones in classroom are
strictly prohibited failure to follow instructions may result confiscation of cell phones.

Driving safety principle and restraints

Today there is unmeasured volunteered social pressure to stay connected via digital cloud
devices. According to a recent study from the National Safety Council found that 26 per cent of
all car accidents were caused by a driver using a cell phone, but only 5 per cent to texting while
driving. This new human connecting technological phenomenon is backing to one of the leading
causes of accidental death and injury motor vehicle collisions. Instinctively human can
concentration in one time at one point. Naturalistic studies validate that cell phones and driving
are an unsafe combination 8. Almost in every society there are boards everywhere written
message upon ‘don’t use mobile while driving. The National Safety Council's annual injury and
fatality report, "Injury Facts," found that the use of cellphones causes 26% of the nation's car
accidents, a modest increase from the previous year. In United State a study observed that cell
phone distractions account for more than 300,000 car crashes each year. As a result, most states
have put laws in place to limit or prohibit the use of mobile devices while driving.

Libraries and Religion gathering norms and restraints

Mobile phone should not be allowed in certain places to ensure there is peace and noiselessness,
which allows concentration and focusing such as libraries to concentrate and do meaningful
work while other attend church gatherings and other religious services to reflect and worship;
nonetheless, public cell phone use in such places, where silence is required, tend to be a source
of distraction. Mobile phone use in places that require utmost silence is some form of irritation.
Public cell phone use in places like this should be banned for the purposes of common civility
and ensuring appropriate ethics of surrounding people. Where this justifies the need to regulate
the public use of cell phones in particular settings it also promotes social cyber ethics
‘cyberettiquettes’ as well.

Courts room proceeding restraints

It is now settled rule almost all over the world that cell phone is prohibit in court proceedings
failure to follow the directory instruction often cause of confiscation of mobile communication
device. In some countries cell phone are allowed to journalist prior special approval of presiding
officer, but in other countries there is clearly a ban to get a mobile device in the courtroom
violation of these rule amounts to contempt of court.

Social Family Relationship Restraints

Family relationships normally based on mutual respect and forbearance, whereas the family
system is fundamental learning stage for child as well. It is analyzed that increase use of mobile
phones has compromised the boundaries between parents and children. Children use cell phone
in a way to negotiate the boundaries at extent with the parents. Children are closely attached
with small cloud gadgets which results constant interact with their friends that have negative
effect on the relation with parents. Teenagers see themselves as gaining a sense of empowerment
from the mobile phone. Cell phone etiquette in the household from an anthropological
perspective has shown an evolution in the institution of family. The mobile phone has now been
integrated into family practices and perpetuated a wider concern which is the fracture between
parent and child relationships.

Part. 17

Cyber Defamation

The expression defamation is defined as "Holding up to a person to ridicule, scorn or contempt in

a respectable and considerable part of the community. Defamation is insinuating representation
or image disseminated or conveyed to a third person through any tangible medium of perception,
may it be print, oral, audio or visual media or devices or any combination thereof causing harm,
and impairment to the reputation, goodwill or estimation of a person, vocation or goods. it may
be criminal as well as civil. Includes both libel and slander. Defamation by the printed words is
"libel" and defamation by spoken words is "slander"---Defamation consists of: a false statement
of facts about another; an unprivileged publication of that statement; some degree of fault
depending on the type of case and some damage or harm caused.

Freedom of expression is one of those fundamental rights which are considered to be the corner
stone of democratic institutions. Right of free speech extends to all subjects which affects way of
life without limitation of any particular fact of human interest and includes in the main term
`freedom of expression'. Right of freedom of speech and expression carries with it the right to
publish and circulate one's idea, opinion and views with complete freedom and by resorting to
any available means of publication. Right of freedom of speech and expression is not unfettered
and unbridled. Absolute and unrestricted such individual rights do not exist in any modern state
and there is no such thing as absolute and uncontrolled liberty. While allowing freedom of
speech and expression as a fundamental right, it is also provided under Art. 14 of the
Constitution, that dignity of man, subject to law, the privacy of home are inviolable. Such
principle is required to be extended further to the case where any defamation is caused, because
human dignity, honour and respect is more important than comforts and necessities. No attempt
on the part of any person individually, jointly or collectively to detract, defame or disgrace other
person, thereby diminishing, decreasing and de-grading dignity, respect, reputation and value of
life.

Section. 2 (b) of Defamation Ordinance 2002 defines “Broadcasting” means the dissemination of
writings, signs, signals, pictures and sounds of all kinds, including any electronic device,
intended to be received by the public either directly or through the medium of relay stations, by
means of–
(i) a form of wireless radio-electric communication utilizing Hertzian waves, including
radio telegraph and radiotelephone, or
(ii) cables, computers, wires, fibre-optic linkages or laser beams, and “broadcast” has a
corresponding meaning;
Whereas Section 2 (e) “Publication” means the communication of the words to at least one
person other than the person defamed and includes a newspaper or broadcast through the internet
or other media;
The penal provision of defamation which amount to be an actionable wrong given in section
three of Defamation Ordinance 2002;
3. Defamation.– (1) Any wrongful act or publication or circulation of a false statement or
representation made orally or in written or visual form which injures the reputation of a person,
tends to lower him in the estimation of others or tends to reduce him to ridicule, unjust criticism,
dislike, contempt or hatred shall be actionable as defamation.
(2) Defamation is of two forms, namely:–
(i) Slander; and
(ii) Libel.
(3) Any false oral statement or representation that amounts to defamation shall be actionable
as slander.
(4) Any false written, documentary or visual statement or representation made either by
ordinary form or expression or by electronic or other modern means of devices that amounts to
defamation shall be actionable as libel.

Provisions of Art. 14 of the Constitution, providing for dignity of man as a fundamental right, is
the most valuable right. Dignity of man is not only provided by Constitution of Pakistan, but
according to history and under Islam, great value has been attached to dignity of man and
privacy of home. While exercising right of freedom of speech and expression, one has to keep in
his mind that he has also a corresponding responsibility and duty to ensure that his freedom of
expression or speech may not transgress limits of freedom beyond the boundaries of the
Constitution.

With regard to falsity the law is that if the matter is defamatory falsity is presumed until it is
proved to be true. Words are prima facie defamatory when their natural, obvious and primary
sense is defamatory, but there may be words and expressions which are prima facie innocent but
in their secondary or latent meaning they may be defamatory. There may be oblique references,
suggestions and insinuations which may be no less defamatory merely because they are coached
in language which prima facie is innocent. Apart from the allegations of fact there may be
comments and these may themselves become defamatory if they do not come within the
description of fair comment on a matter of public interest. And where the imputation is false or
the comment is not fair and bona fide it would be deemed to be malicious; the maliciousness in
law consisting of doing a thing without just cause or excuse. A matter will be deemed to be
defamatory if it exposes the plaintiff to hatred, contempt ridicule or tends to injure him in his
profession or trade. The words of the libel and the circumstances attending its publication
themselves afford evidence of malice in fact.
 Spoken words, even if defamatory, do not amount to a crime under the English law, except when
they are seditious, blasphemous, grossly immoral or obscene. The Penal Code makes no
distinction between spoken and written defamation. Nor does it recognize the distinction of
English law whereby under certain circumstances, words might be libelous if written, but are not
slanderous if spoken.

The English Doctrine that libel is an offence because it tends to a breach of the peace is not
adopted in the Code. The definition in the Code applies to words as well as writings. The
defamatory matter must be published i.e. communicated to a person other than the one defamed.
According to the English law, if such matter is communicated to the person defamed it will be
sufficient for an indictment, if it is likewise to provoke a breach of the peace. The person who
makes the imputation intending to harm the reputation of another, as well as the person who
publishes are alike guilty. The publisher need not be the maker of the defamatory matter.

The defence of “fair comment” is one of the most complex areas of defamation law. In Joseph v
Spiller the first defamation case to be heard by the highest court since Jameel v Wall Street
Journal the defence was renamed as ‘honest comment’ and the HOL has raised many interesting
issues which are ripe for reform. The most significant change is that, unlike the defence of honest
comment, there is no requirement that the statement is on a matter of public interest. This
broadens the scope of the defence. However, the new wording is not entirely clear and there
appears to be conflict between the conditions. The Explanatory Notes state that as condition
refers to any fact, any relevant fact will be sufficient. Hence it seems that it is not a requirement
that the fact which is indicated as the basis of the opinion in the statement must be the same as
the fact on which an honest person could have based his opinion. The new conditions appear to
simplify the test by ensuring that it is entirely objective, therefore removing the focus from the
mind of the commentator. This is likely to provide more protection for honest opinions than the
common law. It offers some clarification to the common law but retains a level of complexity at
the same time. For example it will be a matter of interpretation how far the courts require that
writers indicate the basis of their opinion and what this means in general terms.
Cyber law covers cyber crimes, electronic commerce, freedom of expression, intellectual
property rights, jurisdiction issues and choice of law, and privacy rights. Cyber crimes involve
activities like credit card fraud, unauthorized access to computer systems, child pornography,
software piracy and cyber stalking. Freedom of expression includes defamation, obscenity issues
and censorship. Jurisdiction issues focuses on who makes and enforces the rules governing cyber
space.

The definition of what constitutes a crime in cyber space is still being developed. In the past, the
states and federal government defined cyber crime activities to include the destruction or theft of
computer data and programs. More recently the definition has expanded to include activities such
as forgery, illegal gambling, cyber stalking, cyber defamation etc.
There are numerous areas on the internet where there is a real risk of liability for defamation.
The fact that a user is "alone" with his computer and distanced from other users creates a sense
of intimacy. There is no spoken conversation or dictated correspondence that would normally
instill some caution. In addition, the notion that the internet is a "free-for-all" cyberspace where
there are no limits or boundaries results in a user's sense of social norms and propriety generally
getting blurred.
 The web results in an instantaneous global publication of information at a very low cost.
Information, which would not normally have been revealed prior to the emergence of the
internet, can now be unearthed by practically anyone. Intranets are intended to be exclusively
used by a company. However, information from an intranet can be easily downloaded and
forwarded by e-mail or otherwise to third parties. Information posted to a bulletin board can be
accessed by anyone. This means that anyone can place defamatory allegations on the bulletin
board. E-mail users generally tend to treat their correspondence as a kind of conversation rather
than a written interaction. Users forget that e-mails are stored and can be retrieved as hard copies
and that their contents then cannot be disputed. One message can be circulated to literally
hundreds of people. As a defamatory allegation need only be disclosed to one person for
publication to be proved, every time e-mail is forwarded to another person, it is published again
and an additional cause of action for defamation arises.

The scope of every firm having a cyber presence to liability for defamation is global. Internet
sites can be accessed in most countries throughout the world; huge amounts of data can be
transmitted simultaneously to several different destinations; and e-mail can be forwarded to an
indefinite number of recipients without the original author having any control over the
transmission.

While a legal action based on defamation is usually aimed at stopping the defamatory
allegations, the harm in most cases has already been done. Consequently, the most important
relief claimed in a defamatory action is damages. The amount of damages granted will depend on
the nature of the defamation sought and the extent of publication. Furthermore, a defamation
claim can be instituted in any jurisdiction in which a cause of action arises. In theory then, a
potential defendant to a defamation suit could be sued in respect of a particular defamatory
statement in a number of different countries with which it has no connection under any number
of different laws with which it is totally unfamiliar. Indeed, a potential plaintiff can choose to
litigate in whichever country has the most favourable laws. Theoretically, every time a third
party accesses a defamatory posting on the Internet, publication has occurred.

The global nature of the Internet also raises some interesting procedural questions for the libel
lawyers. In traditional libel law there are three different types of defamatory statements:
i) The first is a statement that is defamatory on its face and which is obviously
defamatory.
ii) The second is a statement, which contains false innuendo. False innuendo is a
defamatory statement that has an inferential meaning, therefore only persons with the necessary
contextual knowledge appreciate that the statement is defamatory. Since statements on the
internet are published globally, their inferential meanings may vary depending on the geographic
or cultural location of the reader or the newsgroups or the Usenet group involved.

iii) The third category is legal innuendo. While not defamatory on their face, these
statements are defamatory when viewed together with extrinsic circumstances. Once again,
contextual knowledge may render a statement defamatory in one jurisdiction but not in another.
Cyber defamation need not necessarily be directed against an individual victim, but it could be
harmful to the whole society. No doubt, at times, it could be directed against an individual
('victim'), but the criminal act is potentially capable of harming a large number of persons and
that is the principal object behind punishing it. In short it is an offence, which affects the health
or material welfare of the community as a whole and not merely of the individual victim.
 18. Important Case Laws

The petitioner had secured access unauthorisedly to the protected system of the Legal Advisor,
breaching confidentiality of I.S. (Shankar vs State Rep. By on 13 December, 2010 Madras High
Court)

Tempering with digital evidence:

electronic Transactions Ordinance (LI of 2002), Ss. 36 & 37.Penal Code (XLV of 1860), Ss. 420 &
109.Cyber crime , cheating and abetment. Bail, grant of. Hacking. Recovery of electronic equipment.
Tampering/destroying of evidence, apprehension of. Accused was apprehended red-handed from the
office of a travel agency where he was working. From the possession of accused, three laptop computers,
mobile phone and one portable internet device were taken into custody by Federal Investigation Agency.
Laptop computers were sent to Forensic Science Laboratory from where it was proved that multiple SSL
IDs assigned to different travel agents were found in the recovered laptop computers of the accused.
Effect. Such SSL IDs could only be used by authorized travel agents but were illegally being accessed by
laptops found in possession of accused. Prosecution had collected substantial evidence connecting
accused with commission of offence. Apprehension existed that if bail was granted to accused he would
tamper with the evidence and even destroy it. Accused was a technical expert and mastermind of a gang
who had been hacking IDs of various travel agents. Lead to other co-accused would be destroyed if
petitioner was allowed to get in contact with his co- accused and the hectic efforts of Federal
Investigation Agency in tracing out the culprits of such serious scam would suffer a serious setback. All
business dealings and transactions were done internationally through internet, therefore, cyber crime
could not be taken lightly. High Court observed that legislature should consider enhancing sentences for
such crime s. Bail was refused in circumstances. ADNAN HAFEEZ v State 2016 PLD 318 LAHORE-
HIGH-COURT-LAHORE

Cyber crimes are not victimless:

Cyber Crimes, white-collar crimes are not victimless. A single scam can destroy a company, devastate
families by whipping out their life savings, or cost billions of rupees to the victims. By passage of time
such type of crimes are now becoming more sophisticated than ever, and the Investigating Agencies have
to use modern devices and expertise skills to track down the culprits. In these circumstances, although
direct evidence is available in this case, but even when indirect/ circumstantial evidence is collected by
the Investigating Agencies without breakage of chain, the same can be considered sufficient evidence/
material to connect the accused with commission of crime. FAISAL RIAZ ETC VS STATE ETC (25-11-
2014) 2014 LHC 8067

Illegal gateway exchange:

S. 498.Electronic Transactions Ordinance (LI of 2002), Ss. 36 & 37.Pakistan Telecommunication (Re-
organization) Act (XVII of 1996), S.31(1).Penal Code (XLV of 1860), Ss.420 & 109.Illegal telephone
gateway exchange and cheating. Pre-arrest bail, refusal of. Accused was guilty of operating illegal
gateway exchange and causing loss to government exchequer .Accused was creating serious security
threats as communication via unknown routes could not be tapped or monitored by security intelligence
agencies. No mala fide of Federal Investigating Agency to falsely implicate accused was on record.
Offences under Ss. 36 & 37 of Electronic Transactions Ordinance, 2002, were not bailable. Accused was
required for further investigation and granting pre-arrest bail to accused would mean that he was
exempted from joining investigation and by not joining investigation prosecution case could suffer for
want of further recoveries. Pre-arrest bail was refused in circumstances. SHAHZAD ASGHAR GONDAL
v State 2016 YLR 439 LAHORE-HIGH-COURT-LAHORE

Cyber crime is punishable with fine:

Electronic Transactions Ordinance (LI of 2002), Ss.2(e), 22, 36, 37 & 38.Penal Code (XLV of 1860),
S.109.Pakistan Telecommunication (Re-organization) Act (XVII of 1996), S.32.Violation of privacy of
information, damage to information system, etc..Bail, grant of. Raid by Federal Investigation Agency
without warrant of search required under S.32 of the Pakistan Telecommunication (Re-organization) Act,
1996.Under S.22 of the electronic Transactions Ordinance, 2002, Pakistan Telecommunication (Re-
organization) Act, 1996 was applicable to proceedings under provisions of electronic Transactions
Ordinance, 2002.Premises raided by the Federal Investigation Agency did not belong to accused. Mere
presence and collective confession of accused was very weak type of circumstances to connect the
accused with alleged crime .Assertion of S.109, P.P.C. had diminished the gravity of offence against
accused. Accused could not be connected with alleged offences at bail stage. Accused was no more
required for further investigation. Offences under Ss.36 and 37 of the electronic Transactions Ordinance,
2002 having been made punishable with fine independently (alternatively), case of accused did not fall
within prohibitory clause of S.497, Cr.P.C..Pre-trial punishment was not intention of law. Detention of
accused was nothing but pre-trial punishment. Bail petition was allowed. Syed MUHAMMAD ASIF v
State 2015 PCrLJ 1406 LAHORE-HIGH-COURT-LAHORE

Violation of privacy of information:

S. 497. electronic transaction s Ordinance (LI of 2002), Ss. 36 & 37. Penal Code (XLV of 1860), Ss.
419/420/468/471/109/34. Foreigners Act (XXXI of 1946), Ss. 14 & 14A. Qanun-e-Shahadat (10 of
1984), Arts. 73, 74 & 75. Violation of privacy of information, damage to information system, etc.,
cheating by personation, cheating and dishonestly inducing delivery of property, forgery for purpose of
cheating, using as genuine a forged document, abetment, illegal entry into Pakistan. Bail, refusal
of--;Proof of document by primary evidence. Scope. Repetition of offence alleged. Effect. E-mail scam.
Accused, who was a foreign national, was alleged to have perpetuated a fraud over e-mail and cheated the
complainant by extracting money from him. Accused had allegedly cheated the complainant, therefore,
S.420, P.P.C., applied, however Ss.468 and 471, P.P.C, did not seem to have been substantiated from the
general complexion of the prosecution case. Section 419, P.P.C. was attracted to the case in view of the
statement of the complainant and prosecution witness. Validity of his permission to stay in Pakistan had
expired at the time of arrest of accused. Accused could not produce his original visa, but produced copies
with the contention that his passport had been taken away by the investigation authority, but question
arose as to how he produced a copy of the visa if his passport had been taken away. Copy of visa could
not be believed as a genuine document being secondary piece of evidence, which otherwise was required
to be proved through primary evidence as envisaged by S.73 of Qanun-e-Shahadat, 1984. Valid entry of
accused in Pakistan was doubtful, therefore, S.14 of Foreigners Act, 1946, was fully attracted. Accused
had repeated the offence alleged, he was denied bail, in circumstances. (2012 PCrLJ 1851
ISLAMABAD)
Abetment and criminal misconduct:

SPrevention of Corruption Act, (II of 1947), S.5(2). Prevention of electronic Crimes Ordinance (LXXII of
2007), Ss. 3/4/5/6/7/8/9/10/18/19. electronic transaction s Ordinance (LI of 2002), S.37. Constitution of
Pakistan (1973), Art.185(3). Cheating forgery, using as genuine a forged document abetment and criminal
misconduct. Bail, refusal of. -No work order had been issued to accused by any competent authority of
the Department. Accused had supplied tender items to the Ministry of Interior, prima facie fraudulently,
having misappropriated a huge amount belonging to public exchequer. Report submitted by the D.G.,
F.I.A., had clearly connected the accused with the commission of the offence, which was duly supported
by the relevant documents and statements. To grant or refuse bail was discretion of the courts. Both the
courts below had refused to exercise discretion in favour of accused with cogent reasons without violating
the settled principles laid down by Supreme Court. Accused seeking equity must come to constitutional
court with clean hands. Conduct of the accused as depicted from the material on record was a hindrance
in exercise of discretion by Supreme Court in his favour, who apparently was linked with the commission
of the crime. Principle of consistency would not help the accused in such circumstances. Bail was
declined to accused accordingly and leave to appeal was refused. (2010 SCMR 1221 SUPREME-
COURT)

Accused was terminating International Traffic:

Electronic Transactions Ordinance (LI of 2002), Ss. 36 & 37. Penal Code (XLV of 1860), Ss.420 & 109--
Cheating abetment. -Terminating Inter-national Traffic bypassing PTCL gateway by using internet
Protocol Address. Appreciation of evidence. PTA had received a complaint through PTCL that accused
was terminating International Traffic by passing PTCL gateway by using internet Protocol Address as
source. Accused was convicted and sentenced under S.31(3) of Pakistan Telecommunication (Re-
organization) Act, 1996. Section 31(5) of Pakistan Telecommunication (Re-organization) Act, 1996
provided that the court would take cognizance only on the complaint by, the Frequency Allocation Board
or any officer authorized by the Frequency Allocation Board. In the present case complaint was not
lodged by the Frequency Allocation Board or any person authorized by the Board. F.I.R. registered under
S.154, Cr.P.C. or challan submitted under S.173, Cr.P.C., could not be equated with the complaint.
Cognizance taken by the Trial Court on the Police report and the trial conducted, in circumstances, was
not in consonance with the mandatory provision of law and amounted to abuse of the process of the court
and thus not maintainable. Judgment of court below was set aside and accused was acquitted of the charge
levelled against him and was released, in circumstances. (2011 YLR 2280 ISLAMABAD)

Cheating and embezzlement:

Federal Investigating Agency Act, 1974 (VIII of 1975), Ss.4, 5, 8(1) & 23. Prevention of electronic
Crimes Ordinance (LXXII of 2007), Ss.4, 7, 8 & 9. Bail, refusal of. Cheating and embezzlement.
Beneficiary of fraud. Dual record, maintaining of. Accused was chief executive of a company licensed to
deal in foreign currency exchange and home remittances. Accused through his company, had been
receiving amounts for transfer to foreign countries transaction s but neither remitted the amounts to
foreign destinations nor returned the same to depositors. Accused under the garb of lawful business of
foreign exchange master minded of fun for making money by adopting fraudulent and corrupt means.
Accused could not shift his liability on the employees of his company because he appeared to be the sole
beneficiary. Evidence was available on record that accused had been himself conducting the affairs of
company. Accused himself instructed his employees to prepare two records, which transaction was to go
in which record and how to deal with customers of the company. Accused and his company had been
doing such business since 2003, and from its inception, such-like fake and forged transaction s were being
made. Number of affectees. against accused were in thousands and Federal Investigating Agency made a
rough estimate of misappropriated amount of Rs.45 Billion. Accused being leader of whole campaign was
not entitled to concession of bail, which was a remedy for persons who were innocent and were involved
in cases with mala fide intention. Petition was dismissed in circumstance. (2010 PCrLJ 67 LAHORE-
HIGH-COURT-LAHORE)