ENG-2001 — Page 389

PUBLIC ORDER

The CPPU maintains close liaison with overseas law enforcement agencies and non- governmental organisations in exchanging information on combating the commercial sexual exploitation of children. With a view to better protecting children from exploitation in relation to child pornography and child sex tourism, the Administration plans to introduce the Prevention of Child Pornography Bill into the Legislative Council in early 2002.

Commercial Crime

The level of syndicated and serious fraud handled by the Commercial Crime Bureau (CCB) in terms of the number of cases over the year decreased by 14 per cent while the total financial losses reported fell substantially, by 43 per cent, compared with 2000.

The upsurge of 'Loco London Gold' fraud that was noted in 1999 was again successfully contained in 2001, with a number of offenders convicted and sentenced to imprisonment for up to eight years and four months. There was a spate of 'pyramid scheme related fraud', most commonly known as 'cash planting' in which offenders promoted fraudulent investment schemes with high rates of return in a short time, plus a large rebate for introducing new members. Proactive enforcement action was taken against 19 companies, and assets worth over $89 million were restrained under the Organised and Serious Crimes Ordinance. Strategic and co- ordinated action by the CCB and other crime units, together with wide publicity in the media, resulted in a substantial reduction in such fraudulent activities.

An upsurge in reports of fraud related to bankruptcy was noted in 2001: increasing numbers of people petitioned for bankruptcy shortly after they had secured bank loans or exhausted the credit limit on newly issued credit cards, thereby potentially defrauding the financial institutions of the amounts outstanding. The CCB liaised with the Hong Kong Association of Banks Working Group on Bankruptcy and investigated cases where fraud was suspected.

The counterfeiting of local currency and credit cards remained a concern. Similar to the trend in major countries, a sizeable number of counterfeit banknotes produced by computers with inkjet printers surfaced in Hong Kong during the year. Such banknotes were frequently detected at banks. However, cases involving the seizure of counterfeit banknotes were fewer than in 2000. In respect of counterfeiting of coinage, there was an increase in the number of fake $10 coins seized, and the CCB monitored the situation closely. The increase did not pose a threat to the integrity of the local coinage; genuine coins worth around $6 billion were in circulation. While the incidence of counterfeit payment cards being used in local retail operations remained low compared with other major cities in the Asia-Pacific region, liaison with the industry and overseas law enforcement agencies was maintained continually to combat this type of crime on an international basis.

Technology crime declined by around 36 per cent, following increases in the previous two years. While the total number of technology crime reports remained small, the gaining of unauthorised access to computers, or 'hacking', remained an area of concern. It was noted that criminals were becoming sophisticated and more inclined to use information technology in perpetrating crime. The number of computers examined for crime evidence continued to increase, by 74.7 per cent.

321