In simple terms, a check kiting scheme involves writing and issuing a check or bank draft in full knowledge that the funds to cover this check aren’t actually in place. How check kiting works in practice Check kiting takes advantage of the way in which the banking system deals with ...
ACH kiting: In a variation on check kiting -- a scam in which funds are juggled back and forth between bank accounts at separate banks -- a criminal moves funds between accounts or financial institutions and then withdraws all the funds before the theft can be detected by the victim (usua...
Similarly, holdover float is generally highest in December and January, due to unprocessed checks deposited during the holiday season. Temporary disruptions to banking hours, such as severe weather events, can also leave holdover floats in their wake. Scammers can take advantage of holdovers on chec...
Fraudsters can track the customer’s keystrokes and discover their banking credentials. This is also known as spear phishing. Check kiting: In this type of ACH fraud, criminals move money back and forth between accounts at different banks. When the transfer is approved by the clearing house, ...