Can an agreement or contract that was made through the internet be valid considering that the transaction is done online? Does an electronic signature have the same value as a handwritten signature? How can you evaluate if the person that you are dealing with is not an impersonator? How will you know if the contents of a document are not forged? There are a lot of questions concerning the validity of an electronic signature which might be the reason why some businesses and customers are still hesitant to make all their transactions electronically.
Just like any transactions, there are some risks with electronic signature tools if it is not properly implemented or managed. It is important for both signing parties to be mindful on determining the validity of the signature to avoid complications on the agreement. In addition, it is essential to recognize a valid signature in order to prevent any fraudulent transactions, security breach, and identity theft.
Electronic Signature
An electronic signature is a way to mark or sign an electronic document. The Department for Business Innovation and Skills defined the electronic signature as a sign that is presented electronically, created through cryptographic methods, typewritten, scanned, utilizes biometrics, and can be unique characters.
The electronic signature is divided into three groups. First is the simple electronic signature, which includes the tick box and scanned signatures. Second is the advanced electronic signature, which can identify the signer and linked it to the document. It can determine if there are any modifications or alterations made to the document after it was signed. And lastly is the qualified electronic signature which is an advanced electronic signature, but with the addition of the digital certificate. The digital certificate acts as the passport to securely exchange messages online. This group makes use of a signing device such as the smart card to encrypt a document.
The best electronic signature tools should be authentic and must have the ability to easily link the documents to the signer. It should be capable of detecting any changes made on the document, and send a notification to the signing parties if alterations were made after the documents were signed. Also, it should be capable of producing an audit trail that can be used for legal purposes. The audit trail should include when the document was signed and where it originated.
The electronic signature software is used by most businesses and customers to streamline their electronic processes while making the transactions easier and quicker. It will just take a few minutes or hours to complete an agreement compared to the traditional method of using paper documents which can normally take days before it can be signed. It provides a convenience for both signing parties since they no longer need to meet face-to-face, but they can sign a contract or an agreement anywhere and anytime. Moreover, the top electronic signature tools are compatible to work with any digital device such as the mobile devices making it preferable to most customers.
The challenge in using an electronic signature is how to prove its validity and make sure that it is secure against data breach. To minimize the risks of using an electronic signature, the digital signature was established.
Sequence on how Characters are Presented
The digital signature uses the cryptographic technology to secure the documents. It cryptographically generates a public and a private key. The public key is a set of number which is generated randomly. It is publicly shared and visible to all the receivers of the electronic document. On the other hand, the private key is only known to and used by the person linked to it. It serves as a secret code of the signer and only the signer has an access to that code.
A digital image of the signer’s signature can also be used in electronic transactions. However, it won’t be able to authenticate the signer. Also, the digital image is not safe since anybody can just take a photo of your signature and paste it in a document. It is not legally binding therefore you will not be able to make claims when it comes to legal issues. You can identify if which software manufacturer can best suit your needs by going through the reviews on digital signature software.
Unlike the electronic signature which can be just a text or image sent through an email, the digital signature links the signature to a file for verification. It is considered more secured compared to other forms of the electronic signature since it can prove the identity of the signer. It is represented by a series of characters and calculated with the use of a mathematical formula. According to information released by Entrust, the formula will depend on the series of the characters which represents the electronic document and the private key.
The digital signature is created by combining the contents of the documents and the private key in order to generate a code that will be embedded in the document. The process of creating the digital software may include user authentication to make the private key available to the device of the signer. The signer can either use a handheld device or a computer in order to generate the signature. The signer can then indicate the approval of the digital signature creation software and authenticate the device. The signing device is responsible for storing the private key securely.
Verifying the accuracy of the signer’s identity can be difficult since the private key is only known to that person and only that key can be used to encrypt and decrypt the documents. This is actually one of the challenges in using the electronic signature as you may not be able to validate if you are dealing with the right person. Also, if it is known publicly, it can be prone to a data breach or cyber-attack. So it is crucial to invest some time in doing a research on electronic signature tool reviews to gain a better understanding on how to ensure the safety of your sensitive information.
Public Key on Both Signing Party
Through the public key, you can verify the name associated with the electronic digital signature software. It uses the concept of key pairs wherein one key is used to encrypt the documents while the other is used to decrypt it. The idea of having a key pair is when a data is encrypted with a public key, it can be decrypted only with the private key; on the contrary, if it is encrypted using a private key, only its public key can decrypt it.
It simplifies the distribution of the keys and provides a long-term encryption. In addition, it helps verify if there are modifications made to the documents after it was signed. The public-key infrastructure (PKI) ensures the accountability of any electronic transactions and minimizes the risk of security breach. All digital signature software in the market today uses PKI for security. It makes the digital signature more secure and effective since it is the one responsible for creating the public keys that are used in digital certificates. The digital signature certificate software is used to authenticate the credentials of the signer during electronic transactions.
Value of Electronic Signature
What is the value of the signature? Why does it require a high-level of security? What is an impact of a signature?
According to The University of Texas Medical School at Houston, the signature doesn’t only reflect the name of the signer but also includes the honor and values of the person. It is a symbol of commitment based on the agreed standards of the signing parties.
Based on LinkedIn, the use of the electronic signature tools removes the need for an on-site storage. The electronic signature provider is the ones accountable in storing the documents. Copies of the documents can be easily accessed by the signing parties so you no longer need to send hard copies which save time and money. Customers are more satisfied as it provides convenience and accessibility from any location, anytime. You can also download the documents if you want to have a copy stored in your document management system, or have the software provider destroy it upon your request. Another advantage of using the software is its capability to easily search and retrieve documents. Using a paper document may take hours to search for documents over a pile of folders. But, with the use of modern technology, it will just take a few clicks and before you know it, you can have the documents in seconds. You can easily look up or copy a contract and use it in creating new agreements
According to FindLaw Australia, mostly of the digital signature creator software already integrated additional ways to authenticate and verify the users. These include biometric authentication, timestamp, and tracking of IP address and email. The software can authenticate the signer with the help of a certification authority (CA). Subscribed users can access the CAs which is an online database use for authentication.
Although the electronic signature makes transactions quicker and easier, it’s still important to make sure that each transaction is safe and secure. Check the list of digital signature software at CrowdReviews.com to help you determine how it can validate the signatures.
Keith Moore
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