Purposeful Sampling vs Random Sampling

Every company faces decision-making risks. Neuro-ID™ technology can dramatically improve your company’s decision making, allowing you to better identify both risk and opportunity and empower you with new actionable insight to focus resources more efficiently.

When you ask a customer a set of online questions, especially risk relevant questions, you can never be sure about the confidence of their responses. Risk relevant questions are those relating to an activity or event where there are meaningful negative stakes for not disclosing the truth. Did you accurately state your income?

When answering risk relevant questions, people either quickly respond because they know the answer and are confident in sharing their response. Or they delay in responding due to low-confidence in their answer. A lack of confidence can be attributed to not understanding the question, not knowing the answer or not wanting to disclose the answer.

Whatever the reason, a low confidence answer puts your organization at risk and is precisely what Neuro-ID™ technology identifies.

Due to limited resources, companies can’t investigate every answer on every online form completed. So how do you decide which individuals or questions you’re going to look into further?

Suppose a company receives 1,000 applications per day and 10% of those applications contain low confidence answers.

That means, on a typical day, roughly 100 applications contain suspect answers.

It’s impractical to investigate every application submitted. Suppose that the company is only able to investigate 10% of the applications or 100 per day.

The big question is how do you decide which to investigate?

One way is to randomly sample 100 applications from the 1,000 received. You find, on average, that 10 out of the one-hundred sampled have low confidence answers. Unfortunately, using this approach, you will miss on average, 90% of the applications containing low confidence responses.

Unconfident people utilize additional cognitive resources to contemplate, decide, and generate an appropriate response.

Neuroscience research shows this lack of confidence causes simultaneous and uncontrolled changes in a person’s motor-nervous system which influences how they move a mouse, or touch and hold a smartphone.

To detect this low confidence, we sample data at millisecond precision from all modern computing devices; including mice, touch pads, tablets and smartphones. Our patent-pending algorithms interpret this data immediately, so the technology can be deployed into any context where real-time decisions must be made.

Each customer will then be given a confidence score called Neuro-CS™. This score is the purposeful criteria used in selecting those to look at more closely.

What does this mean for an organization’s bottom line?

Suppose that 25% of those customers with a low Neuro-CS™ are indeed answering deceptively. This results in a 150% improvement over random sampling. At 50%, a 400% improvement is realized.

In controlled studies, low Neuro-CS™ has identified fraudulent responses at greater than 90%; resulting in an 800% improvement over random sampling.

Indeed, this is sampling with a purpose!

While every context is different, and detection rates will vary from case to case, this is a powerful tool. It saves your company time while increasing good decisions and decreasing bad decisions.

Smarter questions…better bottom line.

 

Jeff Jenkins, CTO Neuro-ID™

Joe Valacich, CSO Neuro-ID™

 

Credit: The authors thank Jackie Valacich for writing this blog post on their behalf.

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Prescriptive Analytics for Risk

 

Credit: The authors thank Jackie Valacich for writing this blog post on their behalf.

Smarter Questions…Better Bottom Line

Millions of questions are being asked via online forms, questionnaires and surveys everyday.  These questions are intended to learn more about any given applicant or customer.  The problem is, businesses have very little confidence in the veracity of these online answers.  Our ongoing mission at Neuro-ID is to leverage our unique technology to enable organizations to gain new visibility into “how” people are answering important online questions.   Simply stated, we help businesses ask smarter questions and validate the answers based on the individual applicant’s own response.  This, in turn allows them to make better decisions, thereby creating a better bottom-line for our customers!

We have commercially deployed the technology within the online lending space to reveal a valuable new dimension of both risk and opportunity for the online applicant.  Our clients are now empowered to scientifically qualify their online applicant.

What started out as an “ah ha” moment for our two co-founders, Dr. Joe Valacich and Dr. Jeff Jenkins at a neuroscience conference nearly seven years ago, has led to the development of a ground-breaking technology. As the CEO of Neuro-ID, a premier provider of prescriptive analytics for the risk industry, I am proud of the many years of research, testing and commercial deployment of our unique neuroscience based technology that is currently changing the way businesses utilize their online forms.

Neuro-ID is unlike any other risk technologies.  Where most companies rely on past data and previous interactions, Neuro-ID is able to assess cognitive and fine motor movements displayed by the applicant (regardless of platform, computer, mobile or other touchscreen device) during the initial interaction with an online application.  Based on these movements and our proprietary algorithm, Neuro-ID is able to qualify the applicant based on their individual response and develop a real-time confidence score that adds great value and insight for the company to better understand the risk and opportunity of their potential customers.

 

Today, we formally introduce the branding of our Neuro Confidence Score (Neuro-CS) This score has been at the center of our technology for years and is derived by uniquely combining behavioral monitoring, advanced analytics and neuro-cognitive research.

 

 

Key Highlights:

  • To learn more, please visit us at our rebranded website neuro-ID.com, via LinkedIn, via Twitter @id_neuro.
  • Neuro-ID provides Prescriptive Analytics for the risk industry. Take a look at the recent Fraud Practice white paper that discusses how prescriptive analytics is changing the risk industry.
  • Neuro-ID solutions use patent-pending neuroscience and prescriptive analytics to construct and analyze forward-looking and risk-relevant questions- an industry first! To learn more about prescriptive analytics, please view our CSO / Co-Founder’s Dr. Joe Valacich’s blog here.
  • Neuro-ID mitigates risk, improves compliance and operation processes and better segments applicant pools. In other words – we make companies better at the origination process.

We continue to rapidly expand the use of Neuro-ID’s unique solution across a wide spectrum of risk-related industries.  I am looking forward to sharing additional company developments and insights into our exciting journey.

 

Regards,

Jack Alton  (@jackaltonmt)

CEO

Neuro-ID