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FS-ISAC Spotlights Risk of ‘Kiting’

FS-ISAC’s latest report for community institutions outlines “kite” schemes, in which an individual or business fraudulently exchanges worthless checks between at least two accounts at separate financial institutions. By taking advantage of the time required for checks to clear, fraudsters can obtain credit from uncollected funds drawn on the financial institutions involved in the kite.

The weekly risk summary—which also includes a security news recap—encourages community institutions to monitor for frequent and gradually increasing deposits, unpaid deposits on new accounts, and frequent use of different bank branches. Read the FS-ISAC Report.