Kiting

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Kiting

Used in banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank.
Also refers to illegally increasing the face value of a check by changing the numbers on the check.
In the context of securities, refers to the manipulation and inflation of stock prices.

Kiting

1. The illegal practice of deliberately misrepresenting the value of a security or transaction in order to extract more funds from a counterparty.

2. The illegal practice of writing a bad check on an account at one bank, depositing it at a second bank, and withdrawing cash. Check holds have made kiting more difficult than it once was.

3. The illegal practice of defacing a check by increasing the amount of money written on it. One may take advantage of bad handwriting, for example, by changing "ten" to "twenty" on the check.
References in periodicals archive ?
I thanked the shop manager and left; I now had a description of the kiter as a portly South American.
The kiter was certainly leaving enough clues behind.
One kiter, for example, wrote checks to himself with memo entries for a trip to Spain and for the purchase of furniture, a car, and even a forklift.
On the third year though a kiter from Halifax was flying a home- made box kite on an exceptionally long line, far in excess of any line normally found on kites.