Check-Kiting Scam Defrauds Credit Union, Cops Say

At least two people believed involved in plan to defraud credit union.

Green Brook, Hillsborough and East Orange Police are investigating a check kiting scam that defrauded Affinity Federal Credit Union of $567 between Jan. 9 and Jan. 30, according to police reports.

According to a report field by a loss control officer with the credit union, a woman opened savings an checking accounts at the Hillsborough branch of Affinity on Jan. 9. On two subsequent occasions in the next five days, a man deposit checks to the checking account—including a $2,500 deposit made in Green Brook on Jan. 14.

Eight minutes after making that deposit, a withdrawal was made at an ATM in Dunellen, according to the bank, even though the checks deposited had not cleared issuing banks. The deposited checks were later returned due to insufficient funds in the accounts. 

Additional withdrawals were made in East Orange.

Bank officials say a total of $567 was withdrawn before the accounts were frozen because of the bounced deposit checks.

The bank reported attempts to contact the woman who opened the accounts had been unsuccessful.

centurion January 31, 2013 at 06:11 PM
" accoounts " Spel czech broken?
Maria February 04, 2013 at 06:03 AM
Last time I checked, when you deposit a check, it isn't available for immediate withdrawal. Maybe $100 of it is, but that's it. So, how was he even able to take the $$$ out of the account when it shouldn't have been there to begin with?


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