Answer:
Bait Money is a major debate among many financial institutions. Regulation H states:
"(ii) Establish procedures that will assist in identifying persons committing crimes against the institution and that will preserve evidence that may aid in their identification and prosecution. Such procedures may include, but are not limited to: maintaining a camera that records activity in the banking office; using identification devices, such as prerecorded serial-numbered bills, or chemical and electronic devices; and retaining a record of any robbery, burglary, or larceny committed against the bank;"
Bait money is recommended by the regulation - it is not required. Some CFOs look at bait money as the investment with very little return depending on the amount of money a financial institution uses in each teller drawer. If you take the dollar amount of bait located in each teller drawer multiplied by the number of tellers you have the result will be the amount of funds not being invested.
We find debate even among the experts on whether to use bait money at all based on the other security procedures your institution might have in place. Examples of this would be dye packs, global positioning systems and if the institution uses a mantrap. If you are using bait money it should be audited on a regular schedule, my recommendation is at least monthly. I have experienced tellers who have handed out bait money in the course of regular business so being sure the bait is accurate is important. Changing bait money at a teller station on a semi- annual basis or annually is just a good procedure.
First published on BankersOnline.com 3/19/07
print
share