Check Kiting

Check kiting is a form of fraud that exploits the time it takes for checks to clear. It involves writing checks between accounts to artificially inflate balances.

Kiting relies on check float and can create temporary overdrafts that collapse when checks clear. Banks monitor for kiting activity and may take legal action.

Related Terms

Check Float

Check float is the time between when a check is written and when it clears the payer's account. Duri...

Overdraft

An overdraft occurs when withdrawals from a bank account exceed the available balance, resulting in ...

Check Clearing

Check clearing is the process of moving funds from the payer's bank to the payee's bank for a check ...

Counterfeit Check

A counterfeit check is a fake or altered check created to defraud the payer or bank. It may use forg...

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