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          • Term
            • kiting
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          • Definition(s)
            • Kiting is the fraudulent use of a financial instrument to obtain additional credit that is not authorized. Kiting encompasses two main types of fraud: a)Issuing or altering a check or bank draft for which there are insufficient fund b) misrepresenting the value of a financial instrument for the purpose of extending credit obligations or increasing financial leverage. Investopedia
          • Example sentence(s)
            • The process of kiting is thus a form of shell game, in which the prize (the alleged cash balance) is moved from one shell to another. As the kiting process continues, the dollar amount rises as well as the number of accounts. Only when the process is halted, either by an alert banking institution or by the kiter, is it discovered that no monies exist. - Britannica by
            • The consequences of check-kiting may be minor or severe, depending upon the size of bank/ FI and level of fraud. In a case where the money involved gets recovered – Bank may not suspend the Kiter’s a/c but may deprive the customer of some privileges like drawing/ depositing personal checks or process ATM transactions. - Wall Street Mojo by
            • Financial institutions lose millions of dollars annually as a result of kiting schemes. The strongest combination for deterring or stopping kiting is observant, alert tellers and the aid of the computer list of all items presented for payment that are drawn against uncollected funds. - InterAction Training by
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