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To over-reach, or impose; also to steal.—Cant. —Biting was once esteemed a kind of wit, similar to the humbug. An instance of it is given in the Spectator: A man under sentence of death having sold his body to a surgeon rather below the market price, on receiving the money, cried, A bite! I am to be hanged in chains.—To bite the roger; to steal a portmanteau. To bite the wiper, to steal a handkerchief. To bite on the bridle; to be pinched or reduced to difficulties. Hark ye, friend, whether do they bite in the collar or the cod-piece? Water wit to anglers.
Definition taken from The 1811 Dictionary of the Vulgar Tongue, originally by Francis Grose.
Bite * BiterNathan Bailey's 1736 Dictionary of canting and thieving slang
John S. Farmer's collection of canting songs and slang rhymes
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Francis Grose was independently wealthy, having inherited money from his father, a jeweller. Finding himself overspending, he published a number of books; his Provincial Glossary seems to have been the starting-point for the Vulgar Tongue reproduced here.