Legal Definitions - check-kiting

Definition: Check-kiting is when someone writes a check from one bank account, deposits it into another account, and then withdraws the money before the check clears. This is illegal and can be considered bank fraud.

For example, let's say John has two bank accounts: Account A and Account B. He writes a check for $500 from Account A and deposits it into Account B. Before the check clears, he withdraws $500 from Account B. This gives him access to $500 that he doesn't actually have.

Check-kiting is a way for people to temporarily inflate their bank account balances and access money that they don't have. However, it's illegal and can result in serious consequences.