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Bad Paper, Volume 3 - Check Kiting

NCJ Number
B K Lary; J T Wells
Date Published
0 pages
This final film in a three-part training series defines and explains check kiting and its detection.
Two professional criminals explain how and why they kited checks, and experts in bank security and operations discuss two distinct types of kiters: the regular customer in a cash bind and the professional criminal. The procedure by which the kiter opens two or more accounts at different banks and uses multiple withdrawals and deposits across accounts and the lag in check processing time to build fake balances is described and illustrated in diagrams. Warning signs of check kiting include frequent deposits, increasing deposit amounts, small average balances, frequent balance inquiries, and payee and maker the same. Other signs are early morning and late afternoon deposits, banking away from a logical area, and a high number of insufficient fund transactions. Careful scrutiny and monitoring of new accounts, careful verification of identification and address information, and placing deposits on hold are discussed as the best means for detecting and thwarting kiting schemes. Accompanied by training manual.