The atomic force microscope (AFM) is one of the major advances in recent science that has enabled imaging of samples at the nanometer scale. Over the years, different techniques have been developed to improve the speed, resolution and accuracy of imaging using AFM. As AFMs can scan and deform material with extremely high resolution, it has also been used as a data read-write system where the high or low topography of the sample surface are interpreted as a one or a zero bit. Data storage using this method can produce extremely high data storage density. In this paper a new method called the innovations mismatch method (IM) is developed that can be used for both imaging and data storage applications. The IM scheme utilizes the dynamic mode of operation and therefore is applicable to soft matter interrogation. In this work, IM method is shown to outperform previously developed techniques.