Jason Voss, CFA, CEO of Active Investment Management Consulting, explains why body language does not work for detecting deception and how computer-driven, text-based deception detection can save investment professionals time and resources.
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)
Topics discussed:
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”