What is a Bait Record?

A bait record is a fake file on a computer that is used to see whether anyone is improperly accessing data.

How Does a Bait Record Work?

Let's assume Company XYZ's magazine covers keep leaking to the competition before they are published, causing competitors to scoop them on several stories. To find out who is leaking the covers, Company XYZ creates a bait record on the computer server and finds out that John Doe, the janitor, has been downloading the file at night and selling it to the competition.

Why Does a Bait Record Matter?

Law enforcement professionals often use bait records to find out who is committing white collar crimes such as insider trading, anti-competitive activity, fraud or other crimes.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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