We have a system that helps banks identify and track kiters. I can briefly tell you how it works.
1. Ignore sweep and zero-balance accounts. These accounts will always appear as though they are being used for kites.
2. Ignore transactions below $1,000. (Yes, there may be kites below $1,000. But the risk of loss is usually not material.)
3. Focus on suspected kites where there are 5 transactions are fewer, and the debit/credit ratio is within 10%.
4. Give special attention to suspected kites that are done by borrowers.
5. Give special attention to accounts that have two or more suspected kites per month, or six or more suspected kites per quarter.
6. It is important to look at withdrawals against uncollected funds. However, be cognizant that you may give next-day availability on checks drawn on local banks--so if the kite is ocurring over 2-3 days, it will not appear to be executed with uncollected funds.
I hope this helps. If you have any questions or would like to see a demo of our system, please contact me directly.
Regards,
Wayne Barnett, President
Wayne Barnett Software
A Texas Corporation
877-945-4344
wbarnett@barnettsoftware.comwww.barnettsoftware.com