The use of digital signatures has seen a tremendous surge in recent years, with global e-Signature transactions soaring from 89 million to a staggering 754 million in just five years. As the adoption of electronic signatures continues to rise, it is essential to be aware of the potential risks associated with their usage.
Electronic signatures are governed by various regulations, including the Electronic Signatures in Global and National Commerce Act (ESIGN), the Uniform Electronic Transactions Act (UETA), and the 21st Century Integrated Digital Experience Act. While wet signatures have long been susceptible to forgery and tampering, electronic signatures offer robust security and authentication measures, along with court-admissible proof of transactions.
Digital signatures do not come without risks, despite their benefits. The potential for fraud, falsification, and revisions to digitally signed papers after signing are a few of the major hazards. Deeds, wills, and other legal documents that call for witnesses are not suitable for electronic signatures, which could render the document invalid if it is signed electronically.
In the context of digital signatures, compliance, validity, and security also pose difficulties. It is crucial to make sure that digital signatures abide by applicable laws and continue to be unalterable. The likelihood of unauthorized signing, the possibility of compromised digital signatures being used fraudulently, and flaws in the software used for electronic signatures are all important considerations.
Furthermore, it is crucial to guard against potential Man in the Middle attacks (MIMA) in digitally signed documents that contain sensitive information, Personally Identifying Information (PII), pricing, and intellectual property. Strong security measures are needed to store signatures and, notably, biometric data, on servers to prevent theft.
It is essential to minimize risks and provide correct authorization for signature use as businesses use electronic signatures for contracts and other documents in increasing numbers. Parties accepting electronic signatures should follow the necessary procedures to confirm consent before proceeding, and implicit authority should never be taken for granted. Judges will carefully examine cases of unlawful use, and approval or acceptance of such signatures may call for convincing proof of knowledge and a lack of effort to correct the issue.
It is fundamental to strike a balance between ease and security in the dynamic world of digital signatures. The world of electronic signatures can be safely traversed if people and businesses identify and mitigate possible risks.
