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in 2002), while the reported total financial losses increased by 0.6 per cent ($1,514 million compared with $1,505 million in 2002).
The successful conclusion of a number of court cases concerning 'pyramid scheme related fraud', with offenders receiving jail sentences of up to three years and nine months, has had a substantial deterrent effect on such crimes. Action taken against a syndicate involved in the fraudulent transfer of bank funds resulted in the arrest of 46 persons and prevented a potential loss of $41 million. A number of defendants have been sentenced to imprisonment for periods of up to six years and three months. There was also a series of mortgage frauds, in which suspects obtained mortgage loans from banks by providing false personal and credit information. Proactive action was taken with the cooperation of the banking industry and this resulted in the neutralisation of a syndicate, preventing a potential loss of $49 million.
In 2003, after strategic and coordinated action by the CCB and the Hong Kong Association of Banks, together with wide publicity in the media, the number of complaints of suspected fraud related to personal bankruptcy was contained. However, given the increasing number of complaints of suspected company insolvency fraud and abuse of the Protection of Wages on Insolvency Fund, the CCB is working with other concerned departments to take action to investigate all incidents.
In preparation for the operation of the Securities and Futures Ordinance from April 1, 2003, the CCB enhanced cooperation with the Securities and Futures Commission in taking enforcement action and sharing experience and knowledge. The successful prosecution and conviction in a high-profile market manipulation case was testimony to this cooperation. The CCB has also maintained close liaison and partnership with other agencies, such as the Hong Kong Monetary Authority, the Companies Registry, the Labour Department and the Official Receiver's Office.
There were a total of 588 cases of technology crime reported in 2003, compared with 272 in 2002: Over 49 per cent of the cases reported are attributable to minor crimes associated with online games, such as the unauthorised use of passwords of other persons to 'steal' or remove virtual weapons or tools earned while engaged in role-playing games.
The examination of computer systems for the purpose of searching, retrieving and preserving digital evidence (computer forensics) continues to provide the greatest challenge due to the increasing size and variety of the data storage media.
The Technology Crime Division continued its efforts to foster closer ties with overseas law enforcement agencies. In October, the division hosted a successful 'Computer Crime Investigation and Training Seminar' which was attended by representatives from eight different jurisdictions. It continued to play a leading role in the Interpol Asia-South Pacific Working Party on Information Technology Crime by assuming the group's Vice Chair.
Narcotics
In 2003, the Police Force continued to accord high priority to tackling the trafficking and abuse of psychotropic substances, especially in respect of young persons and the use of ketamine. At the same time, an upsurge in the trafficking and abuse of heroin in divans was a major target for enforcement.
There was some success in reducing the psychotropic substance abuse problem. However, it was clear that sustained enforcement action would be necessary. The