Check Kiting: An Old Problem with New Consequences

Check kiting scams have unfortunately been around for many years. Even today with reduced float time making it more difficult to detect, there is still a significant risk for Financial Services Organizations (FSOs) when a kiting scam goes undetected.

Fraudsters have been known to run kiting schemes that have gone undetected for decades – eventually causing huge losses for FSOs that are difficult to recover. Modern kiting schemes tend to go beyond checks, including ACH, wire and P2P transactions. Fraudster are now emulating perfect business or retail customer behavior, making it extremely difficult to detect a kiting scam.

FSOs need a modern check kiting solution that provides an early kite risk warning by looking at customer’s monetary and non-monetary event patterns across different channels and payment types.