Green’s Dictionary of Slang

fly n.2

[SE fly, i.e. one is ‘flying a kite’]

1. a trick, a dodge.

[UK]A. Day Mysterious Beggar 271: I put it to him steep; and, my boy, [...] he riz to the fly!

2. (UK und.) constr. with the, any crime involving skill rather than brute force.

[UK]‘Some Varieties of Thieves’ in Star (London) 23 Feb. 4/2: The wide doman known among light-fingered gentry as ‘the fly’.

3. (N.Z. prison) one who borrows money or other goods without repaying.

[NZ]D. Looser Boobslang [U. Canterbury D.Phil. thesis] 71/2: fly n. = seagull.

In phrases

on the fly

1. begging by following passers-by and asking for cash, rather than standing in one place.

[UK](con. 1840s–50s) H. Mayhew London Labour and London Poor II 51/2: The ‘first move’ in his mendicant career was taking them on the fly; which means meeting the gentry on their walks, and beseeching or at times menacing them till something is given.
[Scot]Dundee Courier (Scot.) 25 Feb. 6/5: Brighton is a first-rate place for ‘copping them on the fly’ (begging from people in the streets).

2. getting one’s living by theft, prostitution or some other form of crime.

[UK]Hotten Dict. of Modern Sl. etc.
[UK]Hotten Sl. Dict.
[UK]Sl. Dict.
[Aus]C. Crowe Aus. Sl. Dict. 54: On the Fly, getting one’s living by thieving.
[US]D. Runyon ‘Earthquake’ in Runyon on Broadway (1954) 146: Sam is on the fly at the time.