By Saber Ayyub.
Tripoli, 27 August 2015:
Libyan bank executives were summoned to the Central Bank today to provide officials with debit and . . .[restrict]credit card data.
There is thought to have been widespread fraud whereby cards have been used to buy and sell foreign currency. Most domestic banks have suspended their credit card operations.
On 24 August, the banks were given just four days to come up with the required information, which the Libya Herald understands includes personal data and transaction records between the start of the year and 15 August.
One of the most basic frauds being investigated is the use of Libyan issued cards to withdraw large amounts of foreign currency from ATMs in other countries. This cash is then brought back to Libya, where it is sold on the black market for more than the official rate offered by the banks. The credit card bill is settled in Libyan dinar, the surplus pocketed and the whole process begun all over again.
CBL investigators believe individuals are flying abroad each with hundreds of different credit cards.