Truth vs Lies: Using Text-Based Analysis to Detect Deception

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. ____ ► Subscribe to our Take 15 Podcast YouTube channel: https://www.youtube.com/channel/UCA3HUMuK4FSp_CvQH_2Ji7g?app=desktop ►Transcript: https://cfainst.is/3mhwqpG ►Email us for comments, questions, or appearance requests:Take15podcast@cfainstitute.org ____ 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 https://www.institutionalinvestor.com/article/b14zbb72nrxsjw/financial-analysis-and-the-art-of-lie-and-fraud-detection Brief: Detecting Lies in the Financial Industry: A Survey of Investment Professionals' Beliefs https://www.cfainstitute.org/en/research/cfa-digest/2016/01/detecting-lies-in-the-financial-industry-a-survey-of-investment-professionals-beliefs-digest- Book: Lie Detection Guide: Theory and Practice for Investment Professionals https://www.amazon.com/Lie-Detection-Guide-Investment-Professionals/dp/1942713355 The Secret Life of Pronouns by James W. Pennebaker https://www.secretlifeofpronouns.com/ Enterprising Investor article: Fraud and Deception Detection: Text-Based Analysis https://blogs.cfainstitute.org/investor/2021/02/15/fraud-and-deception-detection-text-based-analysis/ Deception and Truth Analysis homepage: https://deceptionandtruthanalysis.com/ Jason’s most listened-to song: link to Johnny Osbourne's "Murderer” https://www.youtube.com/watch?v=fZzcV07D19w CFA Institute members and charterholders Professional Learning Tracker https://cpd.cfainstitute.org/ ____ Find Jason here: LinkedIn: https://www.linkedin.com/in/jasonapollovoss Twitter: https://twitter.com/theintuitinvest?lang=en Find Lauren here: LinkedIn: https://www.linkedin.com/in/lauren- foster/ Twitter: https://twitter.com/laurenfosternyc

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