Are eSignatures Safe to Use?

 

Secure eSign

The COVID-19 pandemic has upended traditional methods of conducting business. Companies were scrambling to digitize systems, and processes required a digital counterpart to approve or provide signatures on contracts and agreements. These documents formed the bedrock of business relationships and predicted the outlook of future revenue sources. As a result, electronic signatures or e-signatures became a viable solution for firms looking to resume business activities during the pandemic.

With physical records and wet signatures falling short of expectations, eSignatures were being implemented in internal processes and external dealings. They had layers of authentication and security integrated within solutions to overcome the drawbacks of wet signatures. In addition, they were used during remote work policies implemented during the pandemic and in hybrid workspaces.

Despite the benefits of e-Signatures proving their worth in processes, ambivalent attitudes of firms dealing with handwritten signatures prevailed. Many questioned the solution's safety, raising doubts about whether it was here to last. We assessed the various standards of an electronic signature solution to address concerns and answer the question – are eSignatures safe?

45% of organizations globally have implemented the two-factor authentication method to verify e-signatures. LunarPen, 2020

How Safe are eSignatures?

Electronic signatures are safe and easy to use by any individual or firm. They allow user or users to provide their signature on a document confirming consent. Its use has encouraged nations like the US, India, the UK, and others to pass laws to give it the same legal weightage as manual or handwritten signatures.

Some of the security features within the best solutions are:

• User verification – Users need to verify their identity with their eSignature to be authorized to sign any document. These can be an email address or any other identity-equivalent document. Users are identified through user IDs, access keys, digital certificates, and IP addresses.

• Two-factor Authentication – A two-factor authentication ensures that only authorized personnel can access documents and view the content. It uses two steps to verify the identity of a user. Access codes are provided to users, so they can securely access the document, thus restricting access to unauthorized personnel.

• Tamper proof seal – Documents are sealed using Public Key Infrastructure (PKI), a set of protocols for protecting information during transit. The seal is proof of the legitimacy of the online signature and can only be accessed by owners of the private and public keys.

• Digital Certificate – A digital certificate is granted by a third-party provider to parties signing an electronic document using eSignatures. It encompasses the email ID of every signer, time stamp, date, name, and IP address.

• Real-time Mail Trails – Real-time mail trails are used in viewing a document's history and contain actions taken by users, including modifying, alterations, editing, commenting, and signing. 

• Document Storage – Documents are stored safely in the cloud, and the information within documents is secured with strict encryption standards. Electronic signatures are essential in verifying documents, ensuring a document remains unchanged after signing.

• Legal Validity – Digital documents signed with eSignatures are legally binding as handwritten agreements. Well-known solution providers adhere to the ESIGN and UETA acts in the US and similar electronic signature laws in other countries.

Also Read: How Industries can benefit from eSignature Solutions

Common Risks that can be avoided by Implementing Electronic Signatures

Electronic signatures are more secure than wet signatures due to the integration of encryption standards. However, there are common risks organizations should consider before their implementation.

• Risk of fraud & reliability – While an eSignature platform can solve any user authentication issues, there’s always a risk of fraud and forgery within organizations. Implementing additional measures, such as two-factor authentication, is a secure way for organizations to protect themselves.

• Risk of unauthorized signing – How can organizations ensure that all their signatories (incl. e-signatories) are authorized? eSignature solutions allow organizations to track all user activities through real-time mail trails.

• Risk of non-compliance – Organizations should comply with rules and regulations for presenting documents, disclosures, and others. Prominent solution providers adhere to major e-signature laws and policies.

29% of financial institutions have adopted eSignatures to focus on compliance and security. – Aberdeen B2B Sales Cycle Report

Electronic signatures provide significant advantages to organizations in an increasingly digital business landscape. Here's how incorporating eSignatures can improve the efficiency of workflow and customer experience:

Benefits of eSignatures

• Enhanced Customer Experience – Customers can experience seamless signing from their smartphone or pc. The incorporation of eSignatures will lead to more customers signing up. It can help individuals and firms sign documents spanning multiple pages owing to designated input fields indicating areas to sign. 

• Minimize Human Errors – Customers will sign in digital forms and documents in the appropriate fields. Errors are reduced by almost 80% in organizations implementing e-signatures, as per a study by Lunarpen. 

• Reduced Paperwork Costs – Switching to eSignatures can help organizations save costs associated with processes like scanning, printing, and courier expenses. 

• Save Time – eSignatures save customers' time and prevent delays in processes. They help expedite deals in a matter of minutes compared to days and weeks taken using traditional methods.

How DrySign Protects Users

DrySign is a digital signature solution with 128-bit security encryption for securely signing online documents. It offers a range of eSignature plans to users looking to conduct business digitally and expedite document workflows. It complies with the ESIGN Act in the US, the IT Act of 2000 in India, and the Republic Act 8792 or the Electronic Commerce Act of 2000 in the Philippines. Here are some additional security measures that DrySign takes to ensure you and your documents are always protected.  

• PCI DSS – Data security standards by Payment Card Industry (PCI) for ensuring payments are transacted securely.

• Veracode – A list of stringent security standards by Veracode for identifying any security flaws in an application.

• ISO 27000:2013 – A list of requirements for establishing, maintaining, improving, and implementing information security within organizations.

• Dragonpay – A payment gateway that operates using secure socket layer (SSL) technology to protect the transmission of information within web pages.

Conclusion

Electronic signatures enhance the security of critical or sensitive documents. They assist organizations in automating workflows and moving away from paper-based documentation processes. In addition, they play a significant role in mitigating security risks and preventing unauthorized access to unknown users.

Feel safe to sign documents using DrySign.

DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.

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