Jason Voss, CFA, CEO of Active Investment Management Consulting, explains why body language does not work for detecting deception and how Deception and Trust Analysis, or D.A.T.A., a computer-driven, text-based deception detection method, can save investment professionals time and resources.
The Take 15 Series is a collection of illuminating, short conversations with noted economists, best-selling authors, leading researchers, and successful practitioners on topics ranging from geopolitics and whistleblowing to irrationality and outlooks.
Episode Transcript (PDF)
2:08 Do polygraphs work?
2:50 How Jason become interested in field of deception?
4:16 Why body language doesn’t work and the data behind it
5:41 What does work?
7:21 S.U.E and D.A.T.A.
9:06 Fraud versus deception
9:59 How the D.A.T.A. process works
13:54 Warcard database
15:15 Strong truth bias in the investment profession
17:55 Real-world applications for D.A.T.A for analysts and investors
20:02 GameStop and short-sellers
22:07 Closing questions
- One positive long-term impact as result from the pandemic
- One item you would bring on a long NASA flight
- Flight or invisibility
Related articles and links:
- Article: Financial Analysis and the Art of Lie and Fraud Detection
- Brief: Detecting Lies in the Financial Industry: A Survey of Investment Professionals' Beliefs
- Book: Lie Detection Guide: Theory and Practice for Investment Professionals
- The Secret Life of Pronouns by James W. Pennebaker
- Enterprising Investor article: Fraud and Deception Detection: Text-Based Analysis
- Deception and Truth Analysis homepage
- Jason’s most listened-to song: link to Johnny Osbourne's "Murderer”