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Industry Standard Concerning Bait Money

Question: 
What is the latest industry standard concerning bait money? An auditor suggests we either eliminate it or use fewer bills. I don't see a reason to make any change.
Answer: 

by Barry Thompson Opinions on this topic vary among subject matter experts. Experts not wanting bait money offer two major reasons for not keeping bait money. The first, statistics relating to bait money reflect it is not an effective use of cash. Second, very few bank robberies are prosecuted because of bait money. Experts wanting bait money state that the statistics are not accurate and that for medium to small institutions bait money is an effective deterrent for robberies. During review of financial institutions I have observed some institutions keeping large amounts of currency per teller drawer. If you like bait money, consider keeping a small amount of cash as bait — not over $100.00 per drawer. If you view it from an accounting standpoint, multiplying the amount in each drawer times the number of teller drawers to better appreciate the auditor's viewpoint.

Answer: 

by Dana Turner According to the FBI, for the past 10 years "bait money" has figured into the identification and apprehension of financial institution robber in perhaps 1% of all reported robberies. Yep -- 1%. If you insist on using an outdated and archaic security device like bait money, use a $10 and two $5s. Better: invest in GPS tracking devices or dye-packs as robber identification and apprehension tools. They are so much more effective.

First published on 02/17/2014

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