A honeypot is a security mechanism set up to attract and detect potential attackers by simulating vulnerable assets. By hosting a part of the infrastructure online with known vulnerabilities that appear to be company assets, the company can observe and analyze the behavior of attackers conducting reconnaissance. This approach allows the company to get alerts and gather intelligence on potential threats.
Reference = CompTIA Security+ SY0-701 study materials, particularly on threat detection techniques such as honeypots.