Check kiting
Check kiting or cheque kiting (see spelling differences) is a form of check fraud, involving taking advantage of the float to make use of non-existent funds in a checking or other bank account. In this way, instead of being used as a negotiable instrument, checks are misused as a form of unauthorized credit.
History of the term[edit]
The term "check kiting" first came into use in the 1920s. It stemmed from a 19th century practice of issuing IOUs and bonds without any collateral. That practice became known as "flying a kite", as there was nothing to support the loan besides air.[1]