Bait Record

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.

RELATED TERMS
  1. Bait And Switch

    A dishonest marketing tactic in which a marketer advertises a ...
  2. Major Fraud Act Of 1988

    A piece of legislation passed during the Reagan administration ...
  3. Muppet Bait

    Naive investors who are lured into buying hot stocks or securities ...
  4. Synthetic Identity Theft

    A type of fraud in which a criminal combines real (usually stolen) ...
  5. Corporate Fraud

    Activities undertaken by an individual or company that are done ...
  6. Securities Fraud

    A type of serious white-collar crime in which a person or company, ...
Related Articles
  1. Insurance

    What You Need To Know About Insurance Fraud

    Insurance fraud is as old as commerce. Discover the types of life insurance fraud and how they affect you.
  2. Home & Auto

    Mortgage Fraud: Understanding And Avoiding It

    There are many different ways to be victimized through home ownership - learn how to identify and avoid these crimes.
  3. Credit & Loans

    How to Recover From Identity Theft

    Identity theft isn't going away, and fixing it can take time and money. But doing nothing isn't an option. Rather than become a victim, it is time to take action.
  4. Personal Finance

    Detecting Financial Statement Fraud

    Find out how to tell if a company is manipulating its financial data, so you don't invest in the next Enron.
  5. Credit & Loans

    6. Can I Prevent Going From Good Loan To Bad Loan?

    Refinancing can improve your short-term cash flow while also increasing your long-term net worth.
  6. Entrepreneurship

    How To Protect Your Small Business From Fraud

    Small business owners are at risk of being scammed. Here's what you need to know to avoid that.
  7. Professionals

    Consumer protection laws: Identity Theft Protection

    Consumer protection laws: Identity Theft Protection
  8. Investing Basics

    How Do Internal Controls Work?

    Essentially, internal controls limit fraud and other illegal activities.
  9. Economics

    Detecting Financial Statement Fraud

    Fraudulent financial statements account for about 10% of the white-collar crime incidents reported each year.
  10. Credit & Loans

    Identity Theft: Who To Call For Help

    If your identity is stolen, it's critical to act fast. Find out what to do if it happens.
RELATED FAQS
  1. What is the "bait & switch" technique?

    The bait and switch is a advertising technique which can be considered illegal, but in most cases is merely looked upon as ... Read Answer >>
  2. What is accounting fraud?

    Learn what accounting fraud is, why a company commits account fraud and some types of accounting fraud that misrepresent ... Read Answer >>
  3. Does identity theft or credit card fraud also occur with cash-on-delivery?

    Understand the process of cash on delivery (COD) as well as where identity theft and fraud may occur and some techniques ... Read Answer >>
  4. How Long Should I Keep My Tax Records?

    Having the right information available when the IRS calls can save you considerable time, money and stress. Learn how long ... Read Answer >>
  5. Do common stock owners have any protections against bankruptcy or fraud?

    Learn about common stock ownership including the standing of holders in the event of bankruptcy or fraud, and familiarize ... Read Answer >>
  6. How do I use the IRS Free File tax forms?

    Free File is a way for taxpayers to prepare and file their federal taxes online for free. The service is available to individuals ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center