Fraud losses have been an obstacle for the insurance industrysince its establishment. To help detect and deter it, there is nowa frequency-based technology that determines veracity by analyzingbrain activity conveyed through the voice, not throughphysiological response (i.e. computer voice stress analyzer,polygraph machines). In England and the U.S. alike, this technology— referred to as layered voice analysis — has been a very usefultool in pinpointing, investigating, and resolving fraudulent claimsin the insurance industry. As an investigative focus tool, it hasalso been a success in U.S. law enforcement, corrections, andfederal government agencies.

Through its use as an investigative focus tool, layered voiceanalysis assists investigations by guiding users toward thedevelopment of effective lines of questioning. It gives the userthe ability to determine, in real time, the subject's state of mindand emotional status. Throughout the interview, variables reflectedin the subject's voice — such as stress levels, cognitiveprocesses, and emotional reactions — are identified. Investigatorscan often use these variables to decide on topics to furtherexplore, many times forming lines of questioning that result inconfessions. Layered voice analysis has had success in many typesof investigations, including special investigations unitinterrogations, criminal investigations, gang investigations,military intelligence, and internal investigations.

Appropriate Application

While its use in insurance investigations is relatively new inthe U.S., layered voice analysis' use in law enforcement is fairlywell established. Reporting a fraudulent claim is a criminalactivity, and the reactions to interrogation are closely related tothe reactions of more mainstream criminals. Both types of criminalsface a high level of cognitive dissonance when facing thisfraud-fighting tool. In fraudulent claim investigations, theclaimant will even retract a claim when he feels he is going to bediscovered. In England, the technology has also served as aneffective deterrent, as criminals know they will encounter it.

The use of this technology in the insurance industry is becomingmore widespread and has had success. A London organization, theHarrow Council, has been using it in their claim and fraud unitsand has accomplished a lot of success. Because of it, the Britishgovernment plans to implement layered voice analysis inorganizations across the country to fight fraud. One large autoinsurance company in the U.S. has also used the technology withmarked success, implementing it in SIU investigations of falseclaims.

The success of this unique tool as a deterrent is based on itsunique nature. Technologies such as the computer voice stressanalyzer (CVSA) and polygraph machines are often compared to it,despite the fact that they are fundamentally different. Both CVSAand polygraphs measure stress in the voice, and determine from thatstress whether the subject is lying or not. Both of thesetechnologies work by using closed-ended questions that require“yes” or “no” answers. Many factors not related to deception caninduce stress, making the determination of truthfulness basedpurely on stress very unreliable.

Layered voice analysis is a tool used in a different manner thanthe other technologies — and it achieves a different end result.While CVSA and polygraphs measure physiological stress, layeredvoice analysis measures many different psychological attributes. Itis based on brain activity that is captured through the human voicebox, which is used as the medium, displaying the attributes withthe frequencies that are put out. This brain activity is separatedinto 129 different parameters determined using innovativemathematical algorithms.

These parameters point the trained user in the direction of thedeception. This tool is used with open-ended questions and can beused over the phone or in a live interview. The interview can thenbe saved as a recording and separated into relevant segments. Thesesegments are then put into offline mode, where a deeper analysis isdone using the information deemed as vital. It also allows the userto re-evaluate the interview to form more significant lines ofquestioning for another interview. This process lets investigatorspinpoint areas of concern, allowing them to discover new areas toinvestigate or reach a decision that the subject has no guiltyknowledge.

Comparison Shopping

In recent years, there have been numerous studies on theaccuracy of layered voice analysis, CVSA, and polygraph machines.One study is currently near completion. Dr. Michael Adler conductedthis double-blind study on the use of polygraph and layered voiceanalysis on convicted criminal subjects. Each tool was usedaccording to the manufacturer's instructions. The abstract of thestudy reveals the ability of the latter to pick up on the subject'sdeceptions with no inconclusive results. In contrast, the polygraphhad several inconclusive results. An important factor in this studywas the ability of the investigator to pick up on many issuesrevealed in the readings that were not revealed by any othertechnology.

There are few tools — outside of intuition and investigativeprowess — available to assess risk and minimize the amount of moneypaid out because of fraudulent claims. This is the only technologythat can be used over the phone or in person in real time. It canbe used in any language by both claim specialists and investigatorsin the special investigations units. It reconfirms what thespecialists and investigators may already suspect, adding anadditional red flag to a suspicious claim.

In today's economy, it is becoming increasingly important toeliminate wasteful spending. While insurance companies cannotafford to lose money to fraud, they also cannot afford to withholdmoney from those with valid claims. With the use of smart,innovative technologies, it is possible to assess risk, paylegitimate claims in a timely fashion, and dramatically reduce themoney spent on fraudulent claims.