Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Bait Record

What it is:

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

How it works (Example):

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 it Matters:

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.