What is "check kiting"?

Question

The phrase was used on CNN online concerning Mary Winkler's case, and I was curious what the term ment. This is the sentance it was used in:
Authorities say had Mary Winkler deposited $17,500 in checks from unidentified foreign sources in family bank accounts over several months prior to the killing, and a Tennessee Bureau of Investigation agent accused her at a bond hearing last week of "check kiting."

Answer 1

Check kiting or "flagging" is when someone cashes checks against other bad checks or phony deposits. For an example if you went to the ATM and said you deposited $200 into the machine but actually inserted an empty envelope into it, your bank would probably give you credit for the $200 cash deposit. Theoretically you cuould pull out as much as $200 even if your bank balance was actually zero. This is not a good practice as you can be barred from ever having a checking account anywhere if you ever got caught doing this which is really easy to catch you doing it. Most "kiters" or "flagger's" obviously work out much more complicated schemes involving fake ID's and large initial deposits to establish ghost accounts and often may use lines of credit associated with those accounts to commit major fraud.

Answer 2

Kiting Checks

Answer 3

Check Kiting

Answer 4

I had a case in Oklahoma where I represented a client for kiting checks. My memory is that kiting occurs when someone writes a check for money not in the account, and then deposits money to cover the account, by writing another check that does not have sufficient funds to cover it. To do this one must stay on top of cashing and depositing faster than the checks clear. Used to checks could take up to 3 days to clear. So the kiter is taking advantage of the time it takes for a hot check to clear.

Answer 5

It is also known as " floating " ! This is when your account may have monies although , the deposits have not cleared !
The "old fashion way still works today by writing a check & folding it in half back & forth
( to weaken the center and make it flimsy enough ) then, mailed ! When the check gets processed at the bank ( as it goes through their machine ) it jams it up ( so it is removed ) to allow for all the other checks to be processed .....thus leaving the culprit check to be processed last ! Thus, giving the check writer one additional day ( to allow for their funds to clear ! )....it's an old "trick " my dad used to do many years ago !

Answer 6

Check Kiting is basically floating checks to fund an initial check or groups of checks. For instance: You're broke and have no money today you write a check for 100.00 to get by until payday but you have no funds. Tomorrow you write another check for 100.00 and take that money to the bank to cover the first check you wrote, the next day you write another check to cover the second check that covered the first check and so on and so on until you hopefully have the funds to clear up the initial 100.00. Please dont attempt this at home children it can get you in a lot of trouble.

Answer 7

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RE:
What is "check kiting"?
The phrase was used on CNN online concerning Mary Winkler's case, and I was curious what the term ment. This is the sentance it was used in:
Authorities say had Mary Winkler deposited $17,500 in checks from unidentified foreign sources in family bank accounts over several months prior to the...

Answer 8

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They want a check that you write VOID on. The reason for this is for Direct Deposit, they need you bank's routing number as well as your account number. These are the numbers that are encoded on the bottom for your check, between symbols. Both are on you check along with other information (sometimes your check serial number) and it is less likely to be wrong if they take directly off your check rather than having you write it out or give it to them verbally. By writing void on the check, it cannot be used or forged. If you do not have checks, you can go to your bank and request a COUNTER CHECK and they can make one for you. If they won't give you a counter check, ask for an "encoded deposit slip" for your savings account. Make sure it has the "Routing/Transit" number as well as your savings account number. If you explain you need it for saving for Direct Deposit, they should be able to create you one with your savings account number on it, as long as it is voided. Go to the bank service desk rather than a teller. They have the printers that can encode the needed numbers on the bottom of the check.

Answer 9

Check Kiting involves setting up two accounts at two seperate banks You write one check which creates an overdraft and then you write another check from the other bank account and deposit it into that account creating an overdraft on the other account but money in one. Example: You set up and account at Compass bank and one at Chase bank. You write a check from the compass bank account for 500 dollars and deposit it in the Chase bank account you now have 500 dollars to spend and you are overdrafted on you Chase bank account then you write a 800 dollar check from your account at Chase and Deposit it into your compass account getting rid of your overdraft and giving you some extra money but now you are overdrafted at chase, you continue doing this and you are pretty much borrowing money to pay off the other and spend for yourself and you never really had any money to begin with.

Answer 10

" cheque kiting " is a term that is used to describe when you deposit a cheque and bounce back from account to account to make the payments. You are never solely using one source to pay the cheque amount, you are bouncing one amount around.

Example: you have a $ 100.00 bill from your Capital One Mastercard and you use your TD visa to pay the 100.00, than when your td visa bill comes in you use your royal bank visa to pay the bill and so on.