Definition of Check kiting:
Fraudulent scheme in which checks are issued against funds that a bank has credited into an account for deposited but uncleared checks (see check clearing). In effect, it is like an interest free and unauthorized loan which, with careful timing of deposits and withdrawals, can be turned into a large sum. It differs from playing float, because in reality no funds exist. Also called kiting.
How to use Check kiting in a sentence?
- If you find out someone is check kiting you should report them immediately so that no one else gets taken advantage of.
- The check kiting scheme was devious and the individual partaking and engaging in the illegal activities was apprehended by the authorities.
- I did not wanna do business with the man because I knew in the past that he had practiced check kiting and gone to jail.
Meaning of Check kiting & Check kiting Definition