check kiting

Check kiting is illegal in many countries.

However, a majority of countries do not have a float system and checks are not paid until they are cleared, so check kiting is impossible.

Reports of suspected counterfeiting, check fraud, and check kiting were among the financial crimes that saw declines during 2011, dropping 7.5 percent from 2010.

In the case of STI, an elaborate process of check kiting allowed them to survive for ten years even though they were insolvent.

The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow written checks to clear that would otherwise bounce.

Check kiting is a form of check fraud, involving taking advantage of the float to make use of non-existent funds in a checking or other bank account.