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What is Cheque Kitting?

September 3, 2011


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Cheque kiting is a form of cheque fraud. Cheque Kiters open chequing accounts at several banks and deposit a minimal amount of money in each one. Than they write a cheque for a value greater than the account balance in one bank. After that they write a cheque from another account in another bank with non-existent funds. The second cheque is intended to cover the non-sufficient funds from the first account.

Kiters can continue to write cheques to cover their withdrawals on non-existing funds for weeks before one of their accounts goes into overdraft and the cheques will be returned. Cheque kiting is a criminal offence that results in criminal charges.
Source(s):
/www.criminalfraud.com

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