DEFINITION of ‘Bait Record’
An internal control used in accounting to detect fraud and improper usage. Bait records are planted in computerized files so that if the files are improperly accessed, it will be possible to track who accessed them. Bait records get their name because the parties intent on fraud and misuse are tempted to “take the bait.”
BREAKING DOWN ‘Bait Record’
For example, financial services firms are often the target of “phishing” email attacks from hackers and criminals looking to perpetrate identity theft. Bait records – consisting of fictional identities – planted in the firms’ databases may enable law-enforcement agencies to better track who may be committing such fraud.